Allowed

Karnataka Gramin Bank v. Thammegowda

DRT27 Oct 2025OA/770/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Original Application for Recovery Certificate against defendants who defaulted on agricultural loans. Liability for principal, reduced interest, and mortgage properties affirmed despite default.

What did the court decide?

Recovery Certificate issued for Rs.28,93,732/- plus 6% p.a. interest from filing date, recoverable from defendants jointly, severally, personally or via schedule properties.

Karnataka Gramin Bank versus Thammegowda — 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 27^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.770/2023

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BETWEEN:

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Karnataka Grameena Bank Periyapatna Branch, Periyapatna Taluk, Mysore District, Karnataka State-571107 Rep. by its Branch Manger

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… APPLICANT

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AND:

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Sri. Thammegowda S/o. Sri. Mallegowda Aged about 66 years,

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Smt. Annapoorna W/o. Sri. Thammegowda Aged about 59 years

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Sri. M.S. Vijay Kumar S/o. Sri. Thammegowda Aged about 37 years,

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All are residents of : M. Shettihalli Village, Makodu Post, Ravandur Hobli, Periyapatna Taluk, Mysore District – 571108

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Sri. Jayarame Gowda S/o. Sri. Kodi Gowda Aged about 61 years

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OA. No.770/2023

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Komalapura Vilalge, Bettadapura Hobli, Periyapatna Taluk, Mysore District-571102

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. G. Lokesh Murthy, 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.28,93,732/- (Rupees Twenty Eight Lakh Ninety Three Thousand Seven Hundred and Thirty Two only) with further interest thereon

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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

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Following credit facilities:

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ACC limit under KCC scheme of Rs.5.18 lakhs on 10.09.2014;

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ATL loan limit of Rs.1.25 lakhs on 10.09.2014;

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ATL-KGL- loan limit of Rs.2.66 lakhs on 12.09.2014;

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ATL- loan limit of Rs.2.97 lakhs on 15.09.2014 and

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Personal loan limit of Rs.0.75 lakhs on 10.09.2014

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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

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OA. No.770/2023

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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 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 accounts.

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Despite, entering appearance, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 23.04.2024.

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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 A1 to A39 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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OA. No.770/2023

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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? 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

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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

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as stated in the OA, creation of security interest 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 findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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OA. No.770/2023

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Taking into consideration the facts that the credit facilities

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was availed for agriculture purpose and also that OA claim is

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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%

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p.a.(simple).

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In the result, OA.No.770/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.28,93,732/- (Rupees Twenty Eight Lakh Ninety Three Thousand Seven Hundred and Thirty Two only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule properties. The 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

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the amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their other assets are liable

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OA. No.770/2023

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for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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

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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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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 27^th Day of October 2025].

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(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. Ravindra B K, Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Copy of KCC loan application dated 10.09.2014

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OA. No.770/2023

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A2	Copy of KCC loan sanction letter 10.09.2014	dated
A3	Copy of mortgage deed loan agreement f loan dated 10.09.2014	or KCC
A4	Copy of Simple Mortgage Deed dated 10.0	9.2014
A5 & A6	Copy of Revival letter dated 16.08.201 26.06.2020	7 and
A7	Copy of ATLB loan application dated 10.09	.2014
A8	Copy of ATLB loan sanction letter 10.09.2014	dated
A9	Copy of mortgage deed agreement 10.09.2014	dated
A10 to A12	Copy of Revival letters 10.07.2017,29.03.2019 and 28.08.2020	dated
A13	Copy of ATL/KGL loan application 12.09.2014	dated
A14	Copy of ATL/KGL loan sanction letter 12.09.2014	dated
A15	Copy of mortgage deed agreement 12.09.2014	dated
A16 to A18	Copy of Revival letters dated 10.07 29.03.2019, 28.08.2020	.2017,
A19	Copy of ATLB loan application dated 15.09	.2014
A20	Copy of ATLB loan sanction letter 15.09.2014	dated
A21	Copy of mortgage deed agreement 15.09.2014	dated
A22	Copy of simple mortgage deed dated 15.09	.2014
A23 to A25	Copy of Revival letters dated 10.07 29.03.2019 and 28.08.2020	.2017,
A26	Copy of personal loan application 10.09.2014	dated
A27	Copy of personal loan sanction letter with and conditions dated 10.09.2014	terms

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8 OA. No.770/2023

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	Copy of Pronote, DPN Delivery letter, Per. Loan
A28 to A30	Agreement, Guarantee Agreement all dated 10.09.2014
A31 & A32	Copy of letter of revival dated 01.09.2017 & 28.08.2020
A33 & A34	Copy of legal notice dated 19.02.2022 with RPAD acknowledgments
A35 to A39	True extract of Five loan extracts

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Thammegowda

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Thammegowda

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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