Allowed

Karnataka Gramin Bank v. Tirumala Rao

DRT29 May 2026OA/1252/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application by Karnataka Grameena Bank seeking a recovery certificate. The Tribunal found evidence uncontroverted due to defendant default, allowing recovery with interest reduced to 6% p.a. for agricultural loans and 11.80% for the housing loan.

What did the court decide?

Recovery Certificate issued for Rs.46,53,422/- with reduced interest of 6% p.a. for agricultural loans and 11.80% p.a. for housing loan. Defendants jointly and severally liable.

Karnataka Gramin Bank versus Tirumala Rao — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 29^th Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1252/2022

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BETWEEN:

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Karnataka Grameena Bank Branch office at: Jawahar Nagar, Near Vasavi Nagar, Bus Stop, Raichur Town, Raichur Taluk, Raichur District, Karnataka- 584103

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…APPLICANT

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AND:

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Sri. Tirumalarao S/o. Hallerao R/at: Gadhar Village, Upral Post, Raichur Taluk, Ballari District, Karnataka- 583116

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Sri. G Bheemanna Nayak S/o. Hanumanthappa R.at: Primary Agricultural Credit, Co-operative Society, Karatagi Village, Gangavathi Taluk, Koppal District, Karnataka- 583229

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Also at: R/at: Gadhar Village, Upral Post, Raichur Taluk, Ballari District, Karnataka- 583116

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Sri. Yankanna S/o. Hanumanna R/at: Gadhar Village,

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OA 1252/2022

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Upral Post, Raichur Taluk, Ballari District, Karnataka- 583116

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Sri. Siddanna S/o. Yallanna R/at: Gadhar Village, Upral Post, Raichur Taluk, Ballari District, Karnataka- 583116

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : N.G Ravikumar 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 for Rs.46,53,422/- (Rupees forty six lakh fifty three thousand four hundred twenty two 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 defendants availed

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the following credit facilities from the applicant bank:-

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I. Crop production Loan of a sum of Rs.10,00,000/- (Rupees Ten Lakh Only),

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II. Agricultural loan limit of Rs.5,00,000/- (Rupees Five lakh Only),

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OA 1252/2022

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III. Agricultural Term Loan limit of Rs.6,00,000/- (Rupees Six Lakh Only) and

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IV. Housing Loan limit of Rs.15,00,000/- (Rupees fifteen Lakh only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with memorandum of agreement, simple registered mortgage deed and letters of revival in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults 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 18.12.2025.

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OA 1252/2022

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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-33 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 the 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 defendant?

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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

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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 hypothecation and mortgage as claimed by the applicant bank and the defaults

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OA 1252/2022

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committed in the accounts. The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this 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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12. Taking into consideration the facts that the credit facilities

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are availed by defendants for agricultural purpose and housing

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loan 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 @6% p.a. (Simple).

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In the result, OA.No.1252/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.46,53,422/- (Rupees forty six lakh fifty three thousand four hundred twenty two only) consisting of:-

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a) Rs. 14,77,168/- (Rupees fourteen lakh seventy seven

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OA 1252/2022

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thousand one hundred sixty eight Only) with further interest @6% p.a. (Simple) for which defendants No.1 & 2 are jointly severally and personally liable for,

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b) Rs.5,96,355/- (Rupees five lakh ninety six thousand three hundred fifty five Only) with further interest @6% p.a. (Simple) which defendants No.1 & 3 are jointly severally and personally liable for,

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c) Rs.25,79,899/- (Rupees twenty five lakh seventy nine thousand eight hundred ninety nine Only) with further interest @6% p.a. (Simple) which defendants No.1 & 2 are jointly severally and personally liable for,

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d) Rs.15,47,692.00 (Rupees Fifteen Lakh Forty Seven Thousand Six Hundred Ninety Two Only) with further interest @ 11.80% p.a. (Simple), which defendants No.1 & 4 are jointly severally and personally liable for,

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from the date of filing OA till the realization, from the defendants 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

OA 1252/2022

certificate.

(ii) If the sale proceeds are not sufficient, the defendants

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are jointy severally and personally and their other assets are liable to be proceeded against for the balance amount for their respective loans.

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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 receipt of the order.

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

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in terms of this final order.

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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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29^th day of May, 2026].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1252/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Suvarna, Authorised Officer, of the Applicant Bank.

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LIST OF TRUE COPY OF THE DOCUMENTS PRODUCED BY THE

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APPLICANT

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Annex No.	Description of the Documents	Date of Document	Number of pages	Exhibit Number
1.	For PKKCC loan amount Rs.10,00,00	0/-
A1	Loan application	02-07-2016	42-52	Ex-A
A2	Memorandum of Agreement for Agricultural loans	08-07-2016	53-60	Ex-A
A3 A4	Simple Registered mortgage deed Link letter to simple mortgage deed	05-07-2016 05-07-2016	61-66 67	Ex-A Ex-A
A5	Letter of Revival by Defendant No.1 & 2	29-03-2019	68-69	Ex-A
A6	Letter of Revival by Defendant No.1	14-03-2022	70-71	Ex-A
A7	Letter of Revival by Defendant No.2	14-03-2022	72-73	Ex-A
A8	Statement of Accounts from 08-07-2016 to 31-03-2022	30-06-2022	74-78	Ex-A
2.	For Agricultural Term Loan amount	Rs.5,00,000/-

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OA 1252/2022

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A9	Loan application	07-11-2016	79-86	Ex-A
A10	Memorandum of Agreement for Agricultural loans	06-12-2016	87-92	Ex-A
A11 A12 A13 A14	Simple Registered mortgage deed Link letter to simple mortgage deed Letter of Revival by Defendant No.1 & 3 Letter of Revival by Defendant No.1	08-11-2016 06-12-2016 18-06-2019 05-05-2022	93-98 99 100-101 102-103	Ex-A Ex-A Ex-A Ex-A
A15 A16	Letter of Revival by Defendant No.3 Statement of Accounts from 06-12-2016 to 09-06-2022	05-05-2022 30-06-2022	104-105 106-110	Ex-A Ex-A

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3.	For Agricultural Term Loan amou	nt Rs.6,00,000/-
A17	Loan application	15-03-2018	111-118	Ex-A
A18	Loan sanction letter	16-03-2018	119-120	Ex-A
A19	Memorandum of Agreement for Agricultural loans	16-03-2018	121-126	Ex-A

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OA 1252/2022

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A20	Ondemand promissory Note & Take Delivery letter to DPN	16-03-2018	127-128	Ex-A
A21	Simple Registered mortgage deed	15-03-2018	129-134	Ex-A
A22	Link letter to simple mortgage deed	15-03-2018	135	Ex-A
A23	Letter of Revival by Defendant No.1 & 4	22-01-2021	136-137	Ex-A
A24	Statement of Accounts from 16-03-2018 to 16-06-2022	30-06-2022	138-145	Ex-A
4	For Housing loan amount Rs.15,00,0	00/-
A25	Loan application	02-03-2018	146-151	Ex-A
A26	Loan sanction letter	16-03-2018	152-153	Ex-A
A27	Housing Loan Agreement	16-03-2018	154-158	Ex-A
A28	Ondemand promissory Note & Take Delivery letter to DPN	16-03-2018	159-160	Ex-A
A29	Simple Registered mortgage deed	15-03-2018	161-167	Ex-A
A30	Letter of Revival by Defendant No.1 & 4	22-01-2021	168-169	Ex-A
A31	Statement of Accounts from 16-03-2018 to 30-06-2012 with certificate	30-06-2022	170-176	Ex-A
A31a	Consolidated statement & certificate	--------------	177-179

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OA 1252/2022

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A32	Office copy of the Legal Notice	16-04-2022	180-183	Ex-A
A33	Postal acknowledgements	--------------	184-185	Ex-A

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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)

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PRESIDING OFFICER

Karnataka Gramin Bank v. Tirumala Rao

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Tirumala Rao

Case brief

What is this about?

What did the court decide?

What the court decided

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