Allowed

Karnataka Gramin Bank v. D G Shivadevappa

DRT28 Nov 2025OA/540/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application for a Recovery Certificate against farmers who defaulted on agricultural loans. The appeal was heard ex parte as respondents failed to appear. The Tribunal reduced interest to 6% simple and granted recovery of the principal amount.

What did the court decide?

Recovery Certificate issued for Rs. 27,96,821.57 plus 6% simple interest from the date of filing against respondents jointly, severally, and personally.

Karnataka Gramin Bank versus D G Shivadevappa — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.540/2024

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BETWEEN:

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Karnataka Grameena Bank Head office at: Gandhinagar, Ballari, Karnataka – 583 103 Branches at: Yerahalli Village, HD Kote Taluk, Mysore District – 571 114

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Represented by its Branch Manager Smt. Sowmya M …APPLICANT

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AND:

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Mr. D G Shivadevappa S/o. Gurumallappa Aged about 63 years

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Mr. D S Natesh S/o. D G Shivadevappa Aged about 36 years

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Mr. D S Ravishankar S/o. D G Shivadevappa Aged about 33 years

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Mr. D S Nandish S/o. D G Shivadevappa Aged about 30 years

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All residing at: R/o. Dadadahalli Village, Saraguru Hobli, Hanchipura Post, H D Kote Taluk, Mysore District – 571 121 ...DEFENDANTS

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OA-540/2024

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendants : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants

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for Rs. 27,96,821.57/- (Rupees Twenty Seven Lakhs Ninety Six Thousand Eight Hundred and Twenty One and Paisa Fifty Seven Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed the following credit facilities:

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Kisan credit card scheme of Rs. 16,00,000/- (Rupees Sixteen Lakhs Only) on 24.02.2020.

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Covid-19 KCC of Rs. 50,000/- (Rupees Fifty Thousand Only) on 19.05.2020.

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OD-Tobacco growers facility of Rs. 2,35,000/- (Rupees Two Lakhs Thirty Five Thousand Only) on 11.08.2020.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents along with simple mortgage deed and hypothecation agreement.

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OA-540/2024

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 06.01.2025.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-30 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains

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unrebutted as defendants remained ex parte. The evidence tendered

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OA-540/2024

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by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view

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that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA. No. 540/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 27,96,821.57/- (Rupees Twenty Seven Lakhs Ninety Six Thousand Eight Hundred and Twenty One and Paisa Fifty Seven Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and

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OA-540/2024

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received during the pendency of the OA and allowed the same to be

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recovered by proceeding against the schedule properties. Properties

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schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the

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amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their assets are liable for all such

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of November, 2025].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA-540/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Smt. Sonal S, S/o. Pavan Garg, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	14.11.2019	General power of attorney registered as document no. HDK-4-00106-2019-20, at the office of sub-registrar, Hegsadadevanakotte
A2	10.02.2020	Simple mortgage deed registered as document no. HDK-1-09482/2019-20, at the office of sub-registrar, Hegadadevanakote
A3	24.02.2020	Application form cum appraisal repost for KCC (a/c. no. 12023130020017)
A4	24.02.2020	Memorandum of agreement for agricultural loans
A5	24.02.2020	Sanction conveying letter
A6	24.02.2020	Request for agricultural overdraft facilities KCC
A7	24.02.2020	Undertaking letter
A8 & A9	05.01.2023	Two letter of revival
A10	19.05.2020	Application for covid-19 KCC (a/c. no. 42023365006120)
A11	19.05.2020	Pronote and take delivery to DPN
A12	19.05.2020	Undertaking letter
A13	29.04.2023	Letter of revival
A14	18.06.2020	Applications for OD facility by tobacco growers (a/c no. 12023120000277)
A15	10.08.2020	Simple mortgage deed registered as document no. HDK-1-02369/2020-21,at the office of sub-registrar, Hegadadevanakote
A16	11.08.2020	Tobacco/growers OD/loan agreement/conditions
A17	11.08.2020	Hypothecation agreement
A18	11.08.2020	Link letter

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OA-540/2024

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A19	29.12.2021	Letter of renewal
A20	19.05.2023	Letter of revival
A21	16.11.2023	Legal notice
A22	16.11.2023	Five postal receipts
A23 &	-----	Two RPAD covers returned unserved
A24
A25 A26	-----	Three postal department tracking-confirmation by the postmaster
A27
A28	-----	Bank statement a/c. no. 12023130020017
A29	-----	Bank statement a/c. no. 42023365006120
A30	-----	Bank statement a/c. no. 12023120000277

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. D G Shivadevappa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. D G Shivadevappa

Case brief

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What did the court decide?

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