Allowed

Karnataka Gramin Bank v. Vishwanathappa

DRT19 Jun 2025OA/608/2023

Case brief

AI extract

What is this about?

DRT allowed the bank's original application for a recovery certificate against the defendants for default on agricultural term loans and ODs. The tribunal reduced interest to 8% simple and ordered recovery from the primary debtor and assets.

What did the court decide?

Recovery certificate for Rs. 33,23,977/- with 8% interest (simple) from date of filing, realizable personally or against mortgaged/schedule properties.

Karnataka Gramin Bank versus Vishwanathappa — 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 19^th Day of June, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.608/2023

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BETWEEN:

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Karnataka Gramin Bank, Begur Branch, Begur Post, Begur Hobli, Gundlupet Taluk, Chamarajanagar District, Karnataka State- 571109. Represented by its Branch Manager.

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…APPLICANT

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AND:

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Sri. Vishwanathappa, S/o Thibappa, Major, Bettadamadahally Village, Raghavapura Post, Begur Hobli, Gundlupet Taluk, Chamarajanagar District- 571109.

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Sri. Mahesha, S/o Sri. Vishwanathappa, Major, Bettadamadahally Village, Raghavapura Post, Begur Hobli, Gundlupet Taluk, Chamarajanagar District- 571109. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. G. Lokesh Murthy Defendants : Exparte

OA 608/2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 33,23,977/- (Rupees Thirty Three Lakh Twenty Three Thousand Nine Hundred Seventy 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 defendant No.1 availed the following credit facilities from the applicant:-

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Agricultural Term loan of Rs. 93,700/- (Rupees Ninety Three Thousand Seven Hundred Only) and,

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Acc- form of Kisan OD of Rs. 3,00,000/- (Rupees Three Lakh Only) and,

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ATL-KGL of Rs. 3,00,000/- (Rupees Three lakh Only) and,

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ATL- Drip Irrigation of Rs. 2,00,000/- (Rupees Two Lakh Only)

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It is also the case of the applicant that, in view of the above availed loans, the defendant No.1 executed necessary loan documents along with letter of revivals, hypothecation

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OA 608/2023

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agreement, declaratory charge, mortgage agreements in favour of the applicant bank.

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It is stated that defendant No.1 clandestinely, mutated to his son defendant No.2 one of the Bank’s Mortgaged property bearing Sy.No. 13/1 to the extent of 03 Acres 32 guntas.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in compliance of 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 exparte on 21.11.2024.

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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-42 and got the same marked in

OA 608/2023

evidence.

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

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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 unrebutted as defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of the credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the

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accounts. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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OA 608/2023

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Hence in view of the finding arrived herein above, the

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Tribunal find both these issues in favour of applicant and hence,

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this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.608/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs. 33,23,977/- (Rupees Thirty Three Lakh Twenty Three Thousand Nine Hundred Seventy Seven Only) with further interest @ 8 % p.a.(simple) from the date of filing OA till the realization from the defendant No.1 personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property irrespective of the fact that one of mortgaged property is mutated to defendant No.2. Properties schedule to the OA be the schedule to the recovery

OA 608/2023

certificate.

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

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the amount due and payable to the applicant bank, the defendant No.1 personally and his assets are liable for respective amounts due under the respective 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

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order and transferred to Recovery for execution.

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

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 19^th Day of June, 2025].

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Sd/- (T. RAJESH) PRESIDING OFFICER

OA 608/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ramya W/o Arujundeep C.H, Branch Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Examination-in-chief affidavit of the applicant
A2	List of documents
A3	Copy of loan application dated 03.08.2005
A4 & A5	Copy of Sanction dated 06.09.2005, T & C letter dated 16.09.2005, mortgage agreement dated 16.09.2005
A6	Copy of declaratory charge dated 16.09.2005
A7 to A12	Copies of letter of revivals dated 04.09.2008, 02.09.2011, 30.08.2014, 22.07.2015, 24.08.2017, 18.05.2020
A13 to A14	Copy of loan application and Co-obligant letter dated 18.08.2011 and Kisan OD Sanction letter dated 18.08.2011
A15	Copy of mortgage agreement dated 18.08.2011
A16	Copy of declaratory charge dated 11.08.2011
A17 to A19	Copies of letter of revivals dated 16.08.2014, 08.08.2017, 18.05.2020
A20	Copy of loan application dated 30.08.2011
A21 to A22	Copy of terms & condition and mortgage agreement both dated 09.12.2011
A23	Copy of Simple Mortgage dated 07.12.2011
A24 to A27	Copies of letter of revivals dated 25.12.2014, 28.11.2014, 16.11.2017, 18.05.2020
A28	Copy of loan application dated 30.08.2011
A29 & A30	Copy of terms & condition and mortgage agreement both dated 09.12.2011
A31	Copy of declaratory charge dated 07.12.2011
A32 to A35	Copies of letter of revivals dated 28.11.2014, 05.12.2014, 16.11.2017, 18.05.2020
A36 & A37	Copy of legal notice dated 22.06.2022 with postal acknowledgement

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OA 608/2023

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A38	Copy of RTC
A39 to	Certified copy of 4 loan account statements
A42

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Vishwanathappa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Vishwanathappa

Case brief

What is this about?

What did the court decide?

What the court decided

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