Allowed

Karnataka Gramin Bank v. Amaresh

DRT22 May 2026OA/1043/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application for issuance of a Recovery Certificate of Rs. 25,28,223.54 against defaulter borrowers and heirs, allowed recovery at 6% simple interest, and directed creation of the schedule property for execution.

What did the court decide?

Recovery Certificate issued for Rs. 25,28,223.54 with 6% simple interest; decree executable against schedule property and personal assets.

Karnataka Gramin Bank versus Amaresh — DRT (2026) — LawSathi Research

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 22^nd Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1043/2024

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BETWEEN:

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Karnataka Grameena Bank Pothnal, Manvi Taluk, Raichur District-584143 Rep. by Manager Smt. Amaramma S.L

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… APPLICANT

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AND:

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Sri. Amaresh S/o. Mukkanna Aged about 54 years

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Sri. Hanumantha S/o. Mukkanna Aged about 49 years

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Sri. Bheerappa S/o. Kariyappa Aged about major,

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All residing at: R/o. Tadakal Village, Manvi Taluk, Raichur District-584138 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendants : Exparte

OA. No. 1043/2024

FINAL ORDER

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.25,28,223.54 (Rupees Twenty Five Lakh Twenty Eight Thousand Two Hundred Twenty Three and Fifty Four Paisa 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 deceased borrower Kariyappa was availed Rs.50,000/- under Kisan Credit Card Scheme on 27.07.2015, 1^st and 2^nd defendants along with Late Kariyappa availed Irrigation loan of Rs.4,00,000/- on 08.04.2010. The defendant No.3 is the legal heir of deceased borrower Late Kariyappa. The applicant has field memo dated 04.05.2026 the coobligant Shivanagowda demised on 15.05.2022 and late Shivanagowda has no legal heirs, therefore, the applicant is not taking any legal action against late Shivanagowda.

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It is also the case of the applicant that, in view of the above financed the deceased borrower and defendants have executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

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OA. No. 1043/2024

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It is further contended that, despite availing the credit facilities, agreed 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 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 defendants, they failed to appear, resulting the defendants being set exparte on 21.08.2025.

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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 A26 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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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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OA. No. 1043/2024

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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 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 is also proved by the above documents. The claim of the applicant is well within the limitation.

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Taking into consideration the facts that the credit facilities

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are 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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Hence in view of the above finding 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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In the result, OA.No.1043/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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OA. No. 1043/2024

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of Rs.25,28,223.54 (Rupees Twenty Five Lakh Twenty Eight Thousand Two Hundred Twenty Three and Fifty Four Paisa Only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants No.1 and 2 and defendants No.3 to the extent of inheritance of any estate from the deceased borrower Kariyappa, 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 schedule property. The schedule property to the OA be the schedule property 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 No.1 and 2 jointly, severally and personally and their other assets and the defendants No.3 to the extent of inheritance of any estate from the deceased borrower 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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OA. No. 1043/2024

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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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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

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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 22^nd Day of May 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER DRT-II, BENGALURU

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Kindinti Ramanjineyulu, Assistant Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No	Description of loan documents	Date	Exhibits
01	Common application for agricultural loan	08.02.2010	A-1
02	Memorandum of agreement for Croploans	08.02.2010	A-2
03	Request for agricultural Kisan Credit Card	08.02.2010	A-3
04	Letter of Revival	26.11.2012	A-4
05	Letter of Revival	31.10.2015	A-5
06	Letter of Revival	01.10.2018	A-6
07	Letter of Revival	01.01.2021	A-7
08	Application for agricultural loan	17.12.2009	A-8

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OA. No. 1043/2024

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09	Sanction memorandum	05.03.2010	A-9
10	Simple mortgage deed registered at document No.MNV-1-00516- 2010-11 at the office of Sub- Registrar,Manvi	08.04.2010	A-10
11	Memorandum of Agreement for agricultural loans	06.05.2010	A-11
12	Letter of Revival	08.04.2013	A-12
13	Letter of Revival	31.03.2016	A-13
14	Letter of Revival	14.02.2019	A-14
15	Letter of Revival	02.02.2021	A-15
16	Three acknowledgment of security/ liability from mortgagors	26.03.2021	A-16 to A-18
17	Legal notice	20.12.2023	A-19
18	03postal receipts	22.12.2023	A20
19	Three postal acknowledgment card served	-	A21 to A23
20	One postal cover returned unserved	-	A24
21	New bank statement A/c.No.78115354050715	-	A25
22	New bank statement A/c.No.78115330000210	-	A26

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Amaresh

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Amaresh

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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