The Tribunal allowed the Original Application filed by Karnataka Bank Ltd. for issuance of a Recovery Certificate. The Defendants defaulted on agricultural loans and failed to appear. The Tribunal reduced the interest rate to 6% p.a. and granted cost.
Issuance of Recovery Certificate for Rs.56,48,550.24 with interest at 6% p.a. (simple) from the date of filing.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 27th Day of November, 2025
Present: Sri. T. RAJESH
Presiding Officer
OA. No.865/2024
BETWEEN:
Karnataka Bank Ltd., A branch at Ground Floor, Amareshwara Colony, Bengaluru Road, Lingasugur – 584122, Raichur District, Rep. by one of its Principal Officers viz., Branch Manager of Lingasugur Branch Sri. Udaya Morabad …
… APPLICANT
AND:
Counsel on record/appeared for:
Applicant : Sri. Y.P. Gokul Defendants : Exparte
OA. No.865/2024
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:FINAL ORDER:
OA. No.865/2024
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ii) What order are to be passed?
Both these issues are gone into and decided together.
remains unrebutted as defendants remained exparte. The
OA. No.865/2024
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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 security interest as claimed by the applicant bank and the defaults committed in the account. 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.
p.a.(simple).
OA. No.865/2024
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i) The applicant is allowed to recovery an aggregate sum
of Rs.56,48,550.24 (Rupees Fifty Six Lakh Forty Eight Thousand
Five Hundred Fifty and Twenty Four Paisa 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.
ii) In the event of failure of the defendants to pay the
aforesaid amount, the bank is at liberty to proceed against the defendants jointly, severally and personally and other their assets are liable for all such amounts due under the loan account.
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.
iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
v) Interim Application pending, if any, stands disposed of with this Final Order.
OA. No.865/2024
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14. Communicate a copy of the order to the parties concerned
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of
DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27th Day of November 2025].
(T. RAJESH) PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Sri. Udaya Morabad, Branch Manager of the applicant bank.
Exhibits on the part of the Applicant:
| Annexure | Particulars |
|---|---|
| A1 | Credit Sanction Intimation dated 07-5-2018 regarding Goods Loan of Rs.8.90 lakhs |
| A2 | Promissory Note dated 08-05-2018 for Rs.8.90 lakhs from 1st Defendant to Applicant Bank |
| A3 | Take Delivery Letter dated 08-05-2018 from 1st Defendant to Bank |
| A4 | Letter of Pledge dated 08-05-2018 from 1st Defendant to the Bank |
| A5 | Declaration dated 08-05-2018 from 1st Defendant to Bank |
OA. No.865/2024
| A6 | Certified Statement of Account relating to Account No. 140 of the 1st Defendant with the Applicant Bank |
|---|---|
| A7 | Credit Sanction Intimation dated 22-5-2018 regarding Goods Loan of Rs. 24.00 lakhs |
| A8 | Promissory Note dated 22-5-2018 for Rs. 24,00,000/- from 1st Defendant to Applicant Bank |
| A9 | Take Delivery Letter dated 22-5-2018 from 1st Defendant to Bank |
| A10 | Letter of Pledge dated 22-5-2018 from 1st Defendant to the Bank |
| A11 | Declaration dated 22-5-2018 from 1st Defendant to Bank |
| Certified Statement of Account relating to Account | |
| A12 | No. 1801 of the 1st Defendant with the Applicant Bank |
| Letter of Acknowledgment of Debt dated 19-03- | |
| A13 | 2021 from 1st Defendant relating to loan of Rs. 8.90 lakhs |
| Letter of Acknowledgment of Debt dated 19-03- | |
| A14 | 2021 from 1st Defendant relating to loan of Rs. 24.00 lakhs |
| A15 | storage Receipt bearing No. CDS 13664 dated 04- 5-2018 issued by the 2nd Defendant with Marking Lien of the Goods covered therein, in favour of the Applicant Bank. |
| A16 | Storage Receipt bearing No. CDS 13600 dated 21- 5-2018 issued by the 2nd Defendant with Marking |
OA. No.865/2024
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| Lien of the Goods covered therein, in favour of the Applicant Bank. |
|
|---|---|
| A17 | Notice dated 18-7-2019 from Bank to 1st Defendant relating to loan of Rs. 8.90 lakhs |
| A18 | Notice dated 18-7-2019 from Bank to 1 Defendant relating to loan of Rs. 24.00 lakhs |
| A19 | Letter dated to Applicant Bank 18-10-2019 from 1stDefendant |
| A20 | Notice dated 5-9-2023 from Bank's counsel to Defendants |
| A21 | Postal Acknowledgment regarding service of Notice dated 5-9-2023 on the 1st Defendant. |
| A22 | Returned Envelope regarding service of Notice dated 5-9-2023 on the 2nd Defendant. |
(T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed?
1 provisions across 1 enactments
Karnataka Bank Ltd.
Sri. Bhimappa
M/s. CNX Corporation Ltd.
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
