Allowed

Karnataka Gramin Bank v. Laxman Vithoba Shivoor

DRT30 Jun 2026OA/1205/2025

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by a bank for issuance of a Recovery Certificate under Section 19 of the RDB Act. The court awarded recovery of the principal sum with reduced interest of 6% simple p.a. due to agricultural purpose, alongside directions for execution.

What did the court decide?

Issuance of Recovery Certificate for Rs. 27,99,627/- plus 6% simple interest p.a. and costs.

Karnataka Gramin Bank versus Laxman Vithoba Shivoor — 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 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1205/2025

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BETWEEN:

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Karnataka Grameena Bank Udchan Branch, Afzalpur Taluk, Kalaburagi Distrcit-585217 Represented by its Branch Manager, Sri. Lokesh.

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…APPLICANT

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AND:

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Sri. Laxman Vithoba Shivoor S/o Vithoba Shivoor,

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Sri. Basavaraj Vithoba Shivoor S/o Vithoba Shivoor

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Sri. Siddanna Dattu Biradar S/o Dattu Biradar

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All are residing at: Bhosga Village, Afzalpur Taluk Kalaburagi District-585301

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Bapu Vishnu 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. 27,99,627/- (Rupees Twenty Seven Lakh Ninety Nine Thousand Six hundred Twenty Seven 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. Agricultural Term Loan (ATL) Loan of a sum of Rs. 3,00,000/(Rupees Three lakh Only) on 17.04.2006.

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II. Kisan Credit Card Loan (KCC) of sum of Rs. 30,000/- (Rupees Thirty Thousand Only) on 23.10.2007.

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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 Loan Agreement, Registered Mortgage Deed, Appraisal Memorandum cum Sanction Letter.

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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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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 16.01.2026.

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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-21 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 defendant 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 the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are 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.1205/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.27,99,627/- (Rupees Twenty Seven Lakh Ninety Nine Thousand Six Hundred Twenty Seven only) consisting of:

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a. Rs.26,15,376 /- with further interest of 6.00% p.a.(simple) from the

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date of filing OA till the realization in respect of agricultural term loan from the all the defendants;

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b. Rs.1,84,251/- with further interest of 6.00% p.a.(simple) from the date

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of filing OA till the realization in respect of Kisan Credit Loan from the defendant No.1, respectively defendants are 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 proceedings against the schedule property. 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 the amounts due

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under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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 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 30^th Day of June, 2026].

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PRESIDING OFFICER

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Sd/- (T. RAJESH)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ravindra, Manager and Authorized Official of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	17.04.2006	Appraisal Memorandum Sanction Letter
A2	26.04.2006	Loan Agreement
A3	--	Guarantee Agreement
A4	26.04.2006	Registered Mortgage Deed
A5	20.11.2011	Letter of Revival
A6	15.11.2014	Letter of Revival
A7	09.11.2017	Letter of Revival
A8	14.11.2017	Letter of Revival
A9	09.11.2017	Acknowledgment of Security
A10	09.09.2020	Letter of Revival
A11	23.10.2007	Loan Application
A12	23.10.2007	Loan Agreement
A13	20.10.2010	Letter of Revival
A14	15.10.2013	Letter of Revival
A15	15.05.2016	Letter of Revival
A16	12.02.2019	Letter of Revival
A17	20.08.2021	Letter of Revival
A18	10.08.2024	Letter of Revival
A19	18.02.2025	Legal Notice
A20	--	Copy of the Statement of Account Certified under Banker’s Book of Evidence Act, Showing the outstanding Liability under ATL Loan Account No. 5815326048205

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A21	--	Copy of the Statement of Account Certified under
		Banker’s Book of Evidence Act, Showing the
		outstanding Liability under KKC Loan Account No.
		05815354004715

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Laxman Vithoba Shivoor

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Laxman Vithoba Shivoor

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

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