Allowed

Karnataka Gramin Bank v. Tarakeshwara Gowda

DRT31 Dec 2025OA/752/2023

Case brief

AI extract

What is this about?

DRT-I allowed the bank's recovery certificate application filed under Section 19 of the RDB Act for an agricultural loan default. The court reduced the interest rate to 6% simple while confirming liability for the principal and accrued interest against the joint assets.

What did the court decide?

Recovery Certificate issued for Rs. 30,93,419/- with 6% per annum simple interest from filing date till realization, recoverable from joint, several, and personal assets including schedule properties.

Karnataka Gramin Bank versus Tarakeshwara Gowda — 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 31^st Day of December, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.752/2023

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BETWEEN:

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The Karnataka Grameena Bank Shikaripura Branch, Shivamogga Main Road, Kanoor Building, Shikaripura village, Shikaripura Taluk, Hosuru Hobli, Shimoga District, Karnataka-577427

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Rep. by its Branch Manager … APPLICANT

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AND:

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Sri. Tarakeshwara Gowda Aged about 44 years S/o. Sri. Channabasappa Residing at Chowdanayakanakoppa Village, Maravalli post, Shikaripura, Shimoga District-577427

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Sri. N D Shivanna Gowda Major S/o. Devendrappa Residing at Chowdanayakanakoppa Village, Maravalli post, Shikaripura, Shimoga District-577427

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Sri. Veerana Gowda Aged about 46 years S/o. Sri. Channabasappa Residing at Chowdanayakanakoppa Village, Maravalli post, Shikaripura, Shimoga District-577427 ...DEFENDANTS

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OA. No.752/2023

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Counsel on record/appeared for:

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Applicant : Sri. Rohith Ravikumar Defendants : Exparte

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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 for seeking issuance of Recovery Certificate against the defendants for Rs.30,93,419/- (Rupees Thirty Lakh Ninety Three Thousand Four Hundred and Nineteen only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed the KCC loan of Rs.3,00,000/- on 14.08.2012 and KCC loan of Rs.9,00,000/- on 31.07.2014.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule properties.

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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 account

OA. No.752/2023

as NPA.

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 31.07.2024.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A18 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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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: 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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OA. No.752/2023

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The case put forth by the applicant in the Application remains unrebutted as defendants 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 credit facilities as stated in the OA, as to the execution of loan documents as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the above finding which cover both the issues raised in this manner, 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 were availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00% (simple).

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OA. No.752/2023

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In the result, OA.No.752/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.30,93,419/- (Rupees Thirty Lakh Ninety Three Thousand Four Hundred and Nineteen only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from defendants, 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 the defendants jointly, severally and personally and their other assets, including the schedule properties are liable for all such amounts due under the loan account. The schedule properties to the OA be the schedule properties to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding 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 and transferred to Recovery for execution.

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OA. No.752/2023

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

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with 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 (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of December 2025].

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Sd/(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. D Rajendra Kumar , Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Loan application	17.07.2012
A2	Agreement cum deed of hypothecation for agricultural loans executed by Smt. Parvathamma and the defendant No.1 and 2	14.08.2012
A3	registered Simple Mortgage Deed For KCC/OD Facility to Agriculturists Executed by Smt. Parvathamma And the Defendant No.1	13.08.2012
A4	Letter of revival	08.04.2015
A5	Letter of revival	16.07.2015
A6	Letter of revival	02.03.2018
A7	Letter of revival	01.06.2020
A8	Statement of accounts from 14.8.2012 to 04.01.2023 with certificate	04.01.2023

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OA. No.752/2023

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A9	Loan application	04.07.2014
A10	Sanction memorandum	31.07.2014
A11	Memorandum of agreement for agricultural loans executed by Smt. Parvathamma and the defendant No.1 to 3	07.08.2014
A12	Registered simple mortgage deed for KCC/OD facility to agriculturists executed by Smt. Parvathamma and the defendant No.1 and 3	05.08.2014
A13	Letter of revival	12.06.2017
A14	Letter of revival	20.03.2020
A15	Statement of accounts from 07.08.2014 to 04.01.2023	04.01.2023
A15a	Consolidated statement and certificate	--
A16	Office copyof legal notice	25.08.2022
A17	Postal acknowledgements	--
A18	Unservedpostal articles	--

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Tarakeshwara Gowda

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Tarakeshwara Gowda

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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