Allowed

Karnataka Gramin Bank v. G v Subramani Gowda

DRT31 Dec 2025OA/946/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for a Recovery Certificate. The court held the loan accounts were valid, the claim was within limitation, and defendants failed to rebut evidence. Relief includes recovery of principal, reduced simple interest at 6% p.a., and execution against mortgaged properties.

What did the court decide?

Recovery Certificate issued for amounts of Rs.52,34,266/- plus pendente lite and future simple interest at 6% p.a. recoverable via sale of mortgaged properties and subsequent execution against persona

Karnataka Gramin Bank versus G v Subramani Gowda — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

¶2

Dated this 31^st Day of December, 2025

¶3

PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

¶4

O.A.No.946/2023

¶5

Karnataka Gramin Bank, Kamadenahalli Branch, Kamadenahalli Village, Kolar Taluk, Kolar District. PIN – 563 103. Represented by its Manager.

¶6

. . . Applicant

¶7

Versus

¶8

Sri G.V.Subramani Gowda, S/o.Venkataramappa, Residing at Guliganahalli Village, Holur Hobli, Kolar Taluk, Kolar District – 563 101.

¶9

Sri G.V.Venkatappa, S/o. Venkataramappa, Residing at Guliganahalli Village, Holur Hobli, Kolar Taluk, Kolar District – 563 101.

¶10

Sri G.V.Krishnappa, S/o. Venkataramappa, Residing at Guliganahalli Village, Holur Hobli, Kolar Taluk, Kolar District – 563 101.

¶11

Sri Venkataramappa, S/o.Narayanappa, Residing at Manighatta Village, Shasnbhboganahalli Post, Kolar Taluk, Kolar District – 563 103.

¶12

¶13

OA No.946/2023

¶14

Sri Vinod, S/o.Late V.Narayanappa.

¶15

Smt.Nanjamma, W/o.Venkataramappa.

¶16

Smt.Narayanamma, W/o.Venkataramappa.

¶17

Sri Nagesha, S/o.G.V.Subramani Gowda.

¶18

Sri Manjunatha, S/o.G.V.Subramani Gowda.

¶19

Sri Nandeesha, S/o.G.V.Subramani Gowda.

¶20

Smt.Likitha, D/o.G.V.Subramani Gowda.

¶21

Defendants Nos.5 to 11 are residing at Guliganahalli Village, Holur Hobli, Kolar Taluk, Kolar District – 563 101. . . . Defendants.

¶22

Ld. Counsels on record / appeared :-

¶23

Counsel for Applicant :- Sri V.Haridas Bhat. Counsel for 1^st & 2^nd Defendants :- Sri K.Vishwanatha. Defendants 3 to 11 :- Exparte.

¶24

: - O R D E R - :

¶25

The Application was filed by applicant before this Tribunal under

¶26

Section 19(1) of the Recovery of Debt And Bankruptcy Act, 1993 and numbered as above seeking for issuance of a Recovery Certificate for

¶27

a sum of (i)Rs.11,38,754/- from the defendants 1 to 3 and 6 to 11

¶28

¶29

OA No.946/2023

¶30

jointly and severally in respect of due under Sericultural Loan A/c. (ii) Rs.17,27,324/- from the defendants 1, 2, 4 and 6 to 11 jointly and severally in respect of due under KOD Loan A/c. and (iii) Rs.23,68,188/- from the defendants 1, 2, and 5 to 11 jointly and severally in respect of due under KCC Loan A/c. totaling Rs.52,34,266/together with further interest @15.5% p.a. compounded half yearly from the date of OA till the date of realisation together with costs and by way of sale of schedule mentioned properties.

¶31

In the year 2007, the 1^st and 2^nd defendants as the borrowers and mortgagors along with 3^rd defendant as co-obligant and 6^th to 11^th defendants as co-mortgagors approached the applicant bank for Sericultural loan of Rs.3,20,000/- for the purpose of constructing a sericulture rearing house and availed the same on 29.01.2007 upon execution of necessary loan documents including the Memorandum of Agreement for Agricultural Loans executed by D1 to D3. In the year 2010, the 1^st and 2^nd defendants as the borrowers and mortgagors along with 4^th defendant as co-obligant and 6^th to 11^th defendants as co-mortgagors approached the applicant bank for Kisan Overdraft Loan of Rs.5,00,000/- for repair and replacement of machinery and to meet the working capital requirements of allied

¶32

¶33

OA No.946/2023

¶34

activities and availed the same on 29.10.2010 upon execution of necessary loan documents including the Agreement and Deed for Kisan Overdraft executed by D1, D2 and D4. In the year 2015, the 1^st and 2^nd defendants as the borrowers and mortgagors along with one Sri V.Narayanappa, (Father of the 5^th defendant) as co-obligant and 6^th to 11^th defendants as co-mortgagors approached the applicant bank for Kisan Credit Card Loan of Rs.7,95,000/- for growing hybrid tomatoes on their land and availed the same on 27.03.2015 upon execution of necessary loan documents including the Memorandum of Agreement for Agricultural Loans executed by D1, D2 and Sri V.Narayanappa. The defendants 1, 2 along with D3, D4 and Sri V.Narayanappa have executed letters of revival from time to time for due amounts in their respective loan accounts and acknowledged their liability. Sri V.Narayanappa who is the co-obligant of the Kisan Credit Card Loan expired on 11.10.2019 and thereafter on 23.05.2022, the 5^th defendant in his capacity as legal heir of late V.Narayanappa executed a Letter of Revival on 23.05.2022 along with 1^st and 2^nd defendants and acknowledged their liability. The defendants 1, 2 and 6 to 11 have mortgaged their properties described in the schedule to the OA as security for the above said loans and executed letters evidencing deposit of title deeds

¶35

¶36

OA No.946/2023

¶37

dt.25.11.2006, 15.02.2010 and 27.03.2015 respectively. The defendants 1 and 2 also executed acknowledgement of security in favour of applicant on 09.03.2020 and confirmed that the mortgage dt.13.02.2010 shall subsist till all liabilities in respect of above loans are fully recovered.

¶38

The Applicant further contends that despite availing the credit facilities by obliging to pay back the amount the defendants failed to regularize the said loan and hence the loan account of the defendants were classified as NPA. The applicant bank has issued legal notices dt.07.12.2022 calling upon the defendants to repay the dues. Despite availing the credit facilities by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed forcing the Applicant to file this Application.

¶39

Summons was taken out and as the defendants 3 to 11 failed to enter appearance, they were set exparte on 06.02.2024. The written statement filed by 1^st and 2^nd defendants was taken on record as IA No.2239/2023 was allowed which was filed for condonation of delay in filing the written statement. The applicant adduced their evidence through AW1, who filed proof affidavit, produced documents and got marked Exhibits A3 to A45. Despite sufficient opportunities granted

¶40

¶41

OA No.946/2023

¶42

to 1^st and 2^nd defendants, no defence evidence was adduced and

¶43

hence chance for adducing defence evidence was closed.

¶44

In the statement of objections filed by the 1^st defendant which was adopted by the 2^nd defendant, the total denial of all the contentions in the OA. Apart from above, the main contentions of the 1^st defendant put up a defence that the applicant bank had not furnished the statement of account, failed to follow RBI Guidelines and varied rate of interest to without any authority. It is also contended that the bank has not issued the notice to defendants at any point of time and the interest charged by applicant bank is arbitrary and illegal. Hence, the 1^st defendant prayed for dismissal of the OA.

¶45

The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is found to be entitled for the OA claim as the only issue as to the proof of OA claim is answered in favour of the applicant. The defendants failed to substantiate their defence as they failed to adduce any defence evidence and failed to produce any documentary evidence. Even otherwise the contentions taken by the 1^st defendant in their written statement is proved in negative by the evidence of the applicant.

¶46

¶47

OA No.946/2023

¶48

The OA claim is made within limitation and there is no capitalization of penal interest.

¶49

Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed in respect of Sericultural, KOD and KCC loans the pendent lite and future interest is awarded at simple rate that too at reduced rate of 6% p.a. (simple).

¶50

In view of the above

¶51

i. OA No.946 of 2023 stands allowed.

¶52

ii. Applicant is permitted to recover the amounts of (i)Rs.11,38,754/- from the defendants 1 to 3 and 6 to 11 jointly, severally and personally in respect of dues under Sericultural Loan A/c. (ii) Rs.17,27,324/- from the defendants 1, 2, 4 and 6 to 11 jointly, severally and personally in respect of dues under KOD Loan A/c. and (iii) Rs.23,68,188/- from the defendants 1, 2, and 5 to 11 jointly, severally and personally in respect of dues under KCC Loan A/c. totaling Rs.52,34,266/-along with pendente lite and future interest @6% p.a. (simple) from the date of filing of OA till realization 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 schedule mentioned property. The schedule to the OA to be the

¶53

¶54

OA No.946/2023

¶55

schedule to the Recovery Certificate. However, the liability of

¶56

5^th defendant is limited to the extent of assets inherited from Late Sri V.Narayanappa and is only in respect of KCC Loan A/c.

¶57

iii. If the sale proceeds are not sufficient to clear the liability, then the respective defendants 1 to 4 and 6 to 11 are personally and their other assets are liable to be proceeded against for realization of respective dues.

¶58

iv. A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

¶59

v. Interim application pending, if any, stands disposed of in terms of this final order.

¶60

vi. Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

¶61

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.

¶62

(Dictated to PS, transcribed by him corrected and pronounced by me in the open Court on this the 31^st day of December, 2025)

¶63

Sd./- (T. RAJESH) PRESIDING OFFICER

¶64

¶65

OA No.946/2023

¶66

Applicant Witness:

¶67

AW1 –Sri J.Venkateshappa, Manager, Applicant Bank.

¶68

Exhibits on the part of the Applicant:

¶69

Ext.A1 Ext.A2 Ext.A3 Ext.A4

¶70

Ext.A5 Ext.A6 Ext.A7 Ext.A8 Ext.A9 Ext.A10 Ext.A11 Ext.A12 Ext.A13 Ext.A14

¶71

Ext.A15 Ext.A16

¶72

Ext.A17

¶73

Ext.A18 Ext.A19 Ext.A20 Ext.A21 Ext.A22 Ext.A23

¶74

Evidence Affidavit.

¶75

List of Documents.

¶76

Loan Application submitted by D1 to D3 dt.09.01.2007.

¶77

Memorandum of Agreement for Agricultural Loans executed by D1 to D3 dt.29.01.2007.

¶78

Letter of Revival executed by D1 to D3 dt.27.05.2009.

¶79

Letter of Revival executed by D1 to D3 dt.27.01.2012.

¶80

Letter of Revival executed by D1 dt.14.01.2015.

¶81

Letter of Revival executed by D2 dt.14.01.2015.

¶82

Letter of Revival executed by D3 dt.14.01.2015.

¶83

Letter of Revival executed by D1 dt.17.06.2017.

¶84

Letter of Revival executed by D2 dt.17.06.2017.

¶85

Letter of Revival executed by D3 dt.17.06.2017.

¶86

Letter of Revival executed by D1 to D3 dt.11.05.2020.

¶87

Loan Application submitted by D1, D2 & D4 dt.15.02.2010.

¶88

Loan Sanction Letter dt.29.10.2010.

¶89

Request for Agricultural Overdraft Facilities executed by D1 & D2 dt.29.10.2010.

¶90

Agreement and Deed for Kisan Overdraft executed by D1 & D2 dt.29.10.2020.

¶91

Letter of Revival executed by D1 dt.15.10.2013.

¶92

Letter of Revival executed by D4 dt.15.10.2013.

¶93

Letter of Revival executed by D1, D2& D4 dt.19.11.2015.

¶94

Letter of Revival executed by D1, D2& D4 dt.17.06.2017.

¶95

Letter of Revival executed by D1, D2& D4 dt.12.05.2020.

¶96

Loan Application submitted by D1, D2 & late

¶97

V.Narayanappa dt.23.03.2015.

¶98

Loan Sanction Letter dt. 27.03.2015.

¶99

Ext.A24 Ext.A25 Ext.A26

¶100

Request for Kisan Credit Card Loan executed by D1, D2 & late V.Narayanappa dt.27.03.2015.

¶101

Ext.A26 - Memorandum of Agreement for Agricultural Loans executed by D1, D2 & late V.Narayanappa dt.27.03.2015.

¶102

Ext.A27 - Letter of Revival executed by D1 & D2 dt.20.05.2017.

¶103

¶104

OA No.946/2023

¶105

Ext.A28	- Letter of Revival executed by late V.Narayanappa dt. 20.05.2017.
Ext.A29	- Letter of Revival executed by D1, D2 & late V.Narayanappa dt.24.07.2019.
Ext.A30	- Letter of Revival executed by D1 & D2 dt.23.05.2022.
Ext.A31	- Letter of Revival executed by D5 as legal heir of late V.Narayanappa dt.23.05.2022.
Ext.A32	- Letter evidencing Deposit of Title Deeds executed by D1, D2, D6 & D7 dt.25.11.2006.
Ext.A33	- Letter evidencing Deposit of Title Deeds executed by D1 & D2 dt.15.02.2010.
Ext.A34	- Letter evidencing Deposit of Title Deeds executed by D1, D2, D6 to D11 dt.27.03.2015.
Ext.A35	- Acknowledgement of Security executed by D1 & D2 dt.09.03.2020.
Ext.A36	- Certified copy of the Partition Deed entered into between Venkataramappa and others dt.16.06.1978.
Ext.A37	- Sale Deed executed by Munivenkatappa and his son M.Narayanaswamy in favour of Venkataramappa dt.19.11.1992.
Ext.A38	- Sale Deed executed by Sri Munishamappa and his sons M.Yellappa and M.Govindappa in favour of Sri Venkataramappa dt.14.11.1994.
Ext.A39	- Sale Deed executed by Erappa and Venkateshappa in favour of Venkataramappa dt.22.05.1995.
Ext.A40	- Legal Notice issued by applicant bank to the defendants dt.07.12.2022.
Ext.A41	- Legal Notice issued by applicant bank to the defendants dt.07.12.2022.
Ext.A42	- Legal Notice issued by applicant bank to the defendants dt.07.12.2022.
Ext.A43	- Statement of Account in r/o. Sericultural Loan A/c. No.68415309144907.
Ext.A44	- Statement of Account in r/o. Kisan Overdraft Loan A/c. No.68415355015214.
Ext.A45	- Statement of Account in r/o.Kisan Credit Card Loan A/c. No.68415354003617.

¶106

Witness Examined for the Defendants:

NIL

OA No.946/2023

List of Documents Exhibited for the Defendants:

¶111

NIL

¶112

Sd./-

¶113

(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. G v Subramani Gowda

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. G v Subramani Gowda

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

Similar cases

Idbi Bank versus Sri.Ramesh. B. Gowda

Hdfc Bank versus Sh. Ramraj Grewal

Canara Bank versus Mr. Bhanu Tiwari

Karnataka Bank Limited versus Sri.Bheemaraya. N. Bhosale

Mrs Praveena Pattanashetti versus Union Bank of India

Mr Mohammad Ali Saifuddin Navalgund versus Idbi Bank