Allowed

Karnataka Gramin Bank v. Mahadevamma

DRT5 Aug 2026OA/122/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applied application filed by Karnataka Grameena Bank seeking a Recovery Certificate for outstanding agricultural loans. The court fixed interest at 6% per annum simple and directed recovery from defendants jointly, severally, and personally, including legal heirs within the limit of inherited estate.

What did the court decide?

Recovery certificate issued for aggregate sum of Rs. 30,38,767.09 with further simple interest at 6% p.a. to be recovered jointly, severally, and personally, including heirs within inheritance limit.

Karnataka Gramin Bank versus Mahadevamma — Execution and Attachment | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 5^th Day of August, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.122/2025

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BETWEEN:

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

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…APPLICANT

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AND:

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Mst. Mahadevamma W/o Late Sri. Dyavappa, Aged about Major,

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Sri. Ningayya S/o Late Sri. Dyavappa Aged about Major,

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Both are residing at: R/o Chikkotnakal Village, Manvi Taluk, Raichur District-584143.

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Sri. Yankoba S/o Devanna, Aged about Major, R/o Devipur Village, Manvi Taluk, Raichur District-584143.

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Sri. Chowdayya, S/o Narasappa,

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2 122/2025

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Aged about Major, R/o Devipur Village, Manvi Taluk, Raichur District-584143. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Naveen Tao 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 of Recovery Certificate against the defendants for Rs. 30,38,767.09/(Rupees Thirty Lakh Thirty Eight Thousand Seven Hundred Sixty Seven and paise Nine 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 defendant No. 1 and 2 are the legal heirs of Late Sri. Dyavappa @ Dyavanna, the 3^rd and 4^th had stood as co-obligant to the loans. The defendants availed the following credit facilities from the applicant bank:-

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I. KCC-ST-Converted Loan of a sum of Rs. 9,50,000/- (Rupees Nine Lakh Fifty Thousand Only) on 21.10.2014.

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II. Agricultural Term Loan of sum of Rs. 5,00,000/- (Rupees Five Lakh Only) on 20.08.2015.

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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 Agricultural loan, Simple Mortgage Deed, Legal

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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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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 06.01.2026.

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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-28 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

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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 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 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 was 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.122/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of

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Rs.30,38,767.09/- (Rupees Thirty Lakh Thirty Eight Thousand Seven Hundred Sixty Seven and Paise Nine only) consisting of:

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5 122/2025

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a. Rs.18,83,425.12 /- with further interest of 6.00% p.a.(simple) from

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the date of filing OA till the realization from the defendant No. 1, 2 and

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b. Rs.11,53,341.97/- with further interest of 6.00% p.a.(simple) from the

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date of filing OA till the realization from the defendant No.1,2 & 4 from the date of filing OA till the realization, from the defendants jointly, severally and personally, including defendant No.1 and 2 to the extent of their inheritance of any estate from the deceased borrower Sri. Dyavappa 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 amount due and payable to the applicant bank, the defendant jointly, severally and personally and their other assets and the assets of the defendant No.1 and 2 to extent of their inheritance of any estate from the deceased borrower Sri. Dyavappa are liable for all such 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 5^th Day of August, 2026].

Sd/-

(T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: S. Suneel Kumar, Branch Manager 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	10.10.2014	Application form Cum Appraisal Report for PKKCC
A2	20.10.2014	Simple Mortgage deed registered as document no. MNV-1-
		08986-2014-15, at the office of Sub-registrar, Manvi.
A3	21.10.2014	Memorandum of Agreement for Agricultural Loans
A4	21.10.2014	Request for Agricultural Overdraft facilities/PKCC
A5	21.10.2014	Undertaking Letter from the Borrower
A6	12.09.2017	Letter of Revival

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A7	17.04.2020	Letter of Revival
	03.04.2021	Death Certificate of Sri. Dyavanna demised on 12.02.2021
A8	10.01.2023	Letter of Revival of Co-obligant
A9 A10	10.01.2023	Two Letter of Revival of Legal Heirs
A11	31.07.2015	Application form Cum Appraisal Report for Agricultural term Loans
A12	13.08.2015	Simple Mortgage deed registered as document no. MNV-1- 05544-2014-15, at the office of Sub-registrar, Manvi.
A13	20.08.2015	Memorandum of Agreement for Agricultural Loans
A14	20.08.2015	Specimen Signature Card
A15	16.08.2018	Letter of Revival
A16	28.12.2020	Letter of Revival
A17	20.11.2023	Letter of Revival of Co-obligant
A18	20.11.2023	Letter of Revival of Legal Heirs
A19	05.12.2024	Legal Notice
A20	05.12.2024	Four Postal Receipts
A21 to A24		Four Postal cover returned unserved
A25		Old Bank Statement (A/C No. 10781131011678)
A26		Bank Statement (A/C No.78115354050218)
A27		Bank Statement (A/C No78115326081015.)

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

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

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Karnataka Gramin Bank v. Mahadevamma

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Mahadevamma

Case brief

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