Allowed

Karnataka Gramin Bank v. Suresh and Another

DRT4 Mar 2026OA/1045/2025

Case brief

AI extract

What is this about?

In an ex parte recovery proceeding under the RDB Act, the Tribunal, finding the applicant's evidence sufficient due to defendant absence, allowed the Original Application. The Tribunal granted recovery of the principal amount with a mandated reduced interest rate of 6% p.a. simple, permitting enforcement against both assets and personal liability.

What did the court decide?

Recovery Certificate drawn for Rs. 21,91,199.50 with 6% p.a. simple interest from filing date to realization, recoverable from assets and personally jointly and severally.

Karnataka Gramin Bank versus Suresh and Another — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 04^th Day of March, 2026

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.1045/2025

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BETWEEN:

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Karnataka Grameena Bank Head office at: No. 32, Sanganakal Road, Ganghinagar, Ballari- 583 103 Branch office at: Koppar Branch, Deodurga Taluk, Raichur District – 584 111

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Represented by its Branch Manager

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Sri. Vishwanath Ganachari …APPLICANT

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AND:

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Sri. Suresh S/o. Narasareddy Aged about 35 years

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Sri. Sharanappa S/o. Basvarjappa Aged about 57 years

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Both are residing at: Yatgal, Deodurga Taluk,

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Raichur District – 584 111 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Mohamed Afroze Ahamed Defendants : Ex parte

OA-1045/2025

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 21,91,199.50/- (Rupees Twenty-One Lakhs Ninety-One Thousand One Hundred and Ninety-Nine and Paisa Fifty Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed the following credit facilities:

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KCC loan of Rs. 4,00,000/- (Rupees Four Lakhs Only) for the purpose of crop cultivation.

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Agricultural term loan of Rs. 6,15,000/- (Rupees Six Lakhs Fifteen Thousand Only) for the purpose of minor irrigationpipeline.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with Registered mortgage deed.

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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 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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OA-1045/2025

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 29.10.2025.

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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 A-1 to A-19 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?

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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 remains unrebutted as defendants remained ex parte. 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,

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creation of the security interest and the defaults committed in the

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accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the

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OA-1045/2025

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues are in favour of applicant and hence, this

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Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1045/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 21,91,199.50/- (Rupees Twenty-One Lakhs Ninety-One Thousand One Hundred and Ninety-Nine and Paisa Fifty Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during

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the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties 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 the

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amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for all such

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OA-1045/2025

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amounts due under the loan accounts.

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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

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receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 04^th Day of March, 2026].

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Vishwanath Ganachari, S/o. Rajashekhar, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	date	Particulars of Documents
Nos.

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OA-1045/2025

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A1	04.01.2017	Application form cum Appraisal report for PKKCC Loan executed by the 1st Defendant
A2	21.01.2017	Loan Sanction Conveying Letter
A3	21.01.2017	Memorandum of Agreement for Agricultural Loans executed by the 1st and Defendants
A4	21.01.2017	Request for Agriculture Overdraft Facilities
A5	21.01.2017	Undertaking Letter from the Borrower Regarding notice of Variations in the rates of Interest on Loans/Advances
A6	18.01.2017	Registered Mortgage Deed
A7	28.03.2019	Letter of Revival executed by the 1st and 2nd Defendants
A8	04.12.2021	Letter of Revival executed by the 1st and 2nd Defendants
A9	22.08.2024	Letter of Revival executed by the 1st and 2nd Defendants
A10	23.01.2018	Application form cum Appraisal Report for Agricultural Term Loan
A11	26.09.2018	Sanction Memorandum
A12	16.10.2018	Memorandum of Agreement for Agricultural Loan executed by the 1st Defendant
A13	16.10.2018	On Demand Pronate executed by the 1st and 2nd defendants
A14	16.10.2018	Assets standing in the name of the Applicant
A15	24.01.2018	Registered Mortgage Deed
A16	26.07.2021	Letter of Revival executed by the 1st and 2nd Defendants
A17	13.06.2024	Letter of Revival executed by the 1st and 2nd Defendants
A18	------	Statement of Account in KCC Loan in A/No.40705354031519 (Old A/No. 10705131017636)
A19	------	Statement of Account in Agricultural Term Loan in A/No.70515320037818
Witness	Examined fo	r the Defendants: -Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Karnataka Gramin Bank v. Suresh and Another

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Suresh and Another

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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