Allowed

Pragathi Krishna Gramin Bank v. Sharanamma

DRT4 Sept 2026OA/1069/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Karnataka Grameena Bank seeking a recovery certificate against two defendants for an agricultural loan default of approx. Rs. 42.82 lakhs, noting the defendants appeared ex parte.

What did the court decide?

Issuance of Recovery Certificate for Rs. 42,82,081.65 plus interest at 6.00% p.a., recoverable jointly and severally from defendants against mortgage property.

Pragathi Krishna Gramin Bank versus Sharanamma — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 4^th Day of September, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1069/2024

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BETWEEN:

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Karnataka Grameena Bank (Earlier Krishna Grameena Bank) Pragathi Gramin Branch, Boodival Camp Branch, Sindhanur Taluk, Raichur District 584128, Rep. by its Branch Manager, Sri. Nagappa.

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…APPLICANT

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AND:

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Smt. Sharanamma W/o Dharmangouda Aged about 55 years,

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Sri. M. Basanagouda, S/o Ramanagouda, Aged about 45 years,

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Both are R/at: Malkapura Camp Sindhanur Taluk, Raichur District- 584128.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : T.S. Mahabaleshwara 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

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of Recovery Certificate against the defendants for Rs. 42,82,081.65/(Rupees Forty Two Lakh Eighty Two Thousand Eighty One and Paise Sixty

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Five 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 availed the following credit facilities from the applicant bank:-

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I. KCC Loan limit of Rs. 5,00,000/- (Rupees Five Lakh Only) on 02.09.2010.

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II. Kisan OD Loan Limit of Rs. 5,00,000/- (Rupees Five Lakh Only)

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Memorandum of loan Agreement for agricultural loan, Registered Simple Mortgage Deed, Legal Notice.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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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Vide proceedings order dated 02.09.2026 stated that, Despite entering appearance/ filling Vakalath, no written statement filed by defendant No.1, chance closed, called absent, placed exparte on 02.09.2026.

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The applicant had let in evidence through AW-1, who filed Proof

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-24 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 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 Mortgage and hypothecation as claimed by the applicant bank and the defaults committed in the accounts. 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.

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

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

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities was

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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 in view of the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1069/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 42,82,081.65/- (Rupees Forty Two Lakh Eighty Two Thousand Eighty One and Paise Sixty Five 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 amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. Schedule Properties 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 the amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings 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 order and

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transferred to Recovery for execution.

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

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of this final order.

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14. Communicate a copy of the order to the parties concerned in terms

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

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 4^th Day of September, 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: Ragavendra Rajkumar Dindi, Branch Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Particulars	Document date	Marked as Exhibits
1	EVIDENCE AFFIDAVIT
2	LIST OF DOCUMENTS
I	KCC LOAN LIMIT OF Rs.5,00,000/- SANCTIONED ON 02/09/2010 IN LOAN ACCOUNT NO.2010000112 / 10560130000998 / 56015354086812
1	Loan sanction letter	02/09/2010	A-1
2	Memorandum of loan agreement for agriculture loans executed by defendants	02/09/2010	A-2

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3	Registered simple Mortgage Deed executed by the 1^stdefendant	01/09/2010	A-3
4	Letter of Revival executed by the Defendants	16/08/2013	A-4
5	Letter of Revival executed by Defendants	19/01/2016	A-5
6	Letter of Revival executed by Defendants	18/01/2019	A-6
7	Letter of Revival executed by 1^stDefendant	18/12/2021	A-7
8	Letter of Revival executed by 2^ndDefendant	18/12/2021	A-8
9	Acknowledgement of security /liability from mortgagors executed by 1^stDefendant	07/08/2021	A-9
10	Copy of Legal Notice	03/10/2023	A-10
11	Two Postal receipts	05.10.2023	A-11
12	Loan Account Statement		A-12
II	KISAN OD LOAN LIMIT OF Rs.5,00,000/- SANCTIONED ON 04/10/2010 IN LOAN ACCOUNT NO.2010000014 / 10560120000170 / 56015355014213
1	Loan application	25/09/2010	A-13
2	Agreement and deed for Kissan OD executed by the defendants & covenants executed by the 2^ndDefendant	04/10/2010	A-14
3	Registered Simple Mortgage Deed executed by the 1^stdefendant	25/09/2010	A-15
4	Letter of Revival executed by the Defendants	16/08/2013	A-16
5	Letter of Revival executed by Defendants	19/01/2016	A-17
6	Letter of Revival executed by Defendants	16/01/2019	A-18

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7	Letter of Revival executed by 1^stDefendant	13/12/2021	A-19
8	Letter of Revival executed by 2^ndDefendant	13/12/2021	A-20
9	Acknowledgement of security/liability from mortgagors executed by 1^stDefendant	05/01/2021	A-21
10	Legal notice	03/10/2023	A-22
11	Two Postal receipts	05/10/2023	A-23
12	Statement of account extract		A-24

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil –

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Pragathi Krishna Gramin Bank v. Sharanamma

Case brief

What is this about?

What did the court decide?

Pragathi Krishna Gramin Bank v. Sharanamma

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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