Allowed

Karnataka Gramin Bank v. Basalingappa Siddaramappa Chipatti

DRT31 Dec 2025OA/834/2023

Case brief

AI extract

What is this about?

This Tribunal allowed an Original Application under Section 19 RDB Act for issuance of a Recovery Certificate. Granted reduced interest at 6% p.a. and authorized recovery from the defaulting agricultural loan borrower.

What did the court decide?

Recovery Certificate issued for Rs.38,48,172.50 with interest at 6% p.a. (Simple). Execution proceedings authorized against schedule property and personal assets.

Karnataka Gramin Bank versus Basalingappa… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 31^st Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.834/2023

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BETWEEN:

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Karnataka Grameena Bank Chincholi Branch, Main Road, Near Bus Stand Area Chincholi Tq.Chincholi District, Kalaburagi Pin-585307

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…APPLICANT

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AND:

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Sri. Basalingappa Siddaramappa Chipatti S/o. Siddaramappa Chipatti R/at: Degalmadi Chincholi Taluk, Gulbarga District- 585307

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Prakasha Hegde K 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 seeking issuance of Recovery Certificate for Rs.38,48,172.50 (Rupees thirty eight lakh forty eight thousand

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one hundred seventy two and paisa fifty only) with further

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OA 834/2023

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interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed the Agricultural Loan credit facilities of Rs.5,00,000/- (Rupees five lakh only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with Memorandum cum sanction, mortgage deed in favor of the applicant bank.

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It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults 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 defendant, he failed

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to appear, resulting the defendant being set exparte on 27.08.2024.

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OA 834/2023

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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-11 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 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 OA claim as against the defendant?

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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

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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 credit facilities as stated in the OA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults

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OA 834/2023

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committed in the accounts. The liability of the defendants and

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the claim as the amount due is 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 finding arrived herein above, this Tribunal find both these issues 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

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are availed by defendant for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a.(Simple).

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In the result, OA.No.834/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.38,48,172.50 (Rupees thirty eight lakh forty eight

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thousand one hundred seventy two and paisa fifty only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant

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personally after giving credit to all the amount recovered and

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OA 834/2023

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received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendant

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personally and his other assets are liable to be proceeded against for the balance amount.

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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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 31^th day of December, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 834/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Shankarappa Nagarale, Senior 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.	Date	Particulars of Documents
A3	16.05.2012	Agricultural loan application
A4	17.05.2012	Appraisal Memorandum cum sanction
A5	16.05.2012	Loan Agreement
A6	30.04.2013	Renewal of crop loan application
A7	03.05.2013	Loan agreement
A8	15.05.2012	Mortgage deed
A9	14.04.2013	Mortgage deed
A10		Statement of account in A/c NO.74005050310 now migrated account No.05915326051012
A11		Statement of account in A.c No.74004241205 now migrated Account No.11059130000276 renumbered Account no.05915354174415
A12	21.02.2023	Legal Notice
A13		Postal Receipt

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Basalingappa Siddaramappa Chipatti

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Basalingappa Siddaramappa Chipatti

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

Coram

Case details

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