Allowed

Karnataka Gramin Bank v. Jayamma

DRT31 Jul 2026OA/127/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for issuance of a recovery certificate against defaulting borrowers. The court found evidence of credit facility availing, security creation, and default proved. Principal amount was awarded with reduced interest.

What did the court decide?

Allow issuance of recovery certificate for Rs. 24,71,897/- plus 8% p.a. simple interest; recover jointly, severally, and personally from defendants against schedule property and other assets.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.127/2023

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BETWEEN:

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Karnataka Grameena Bank Kamalapura Branch Panchavalli Road, Kampalapura Village, Periyapatna Taluk, Mysore District-571108 Karnataka State Rep. by its Branch Manager

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… APPLICANT

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AND:

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Smt. Jayamma W/o. Sri. Boregowda Aged about 57 years V.G. Koppalu Village, Periyapatna Taluk, Mysore District-571108

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Sri. Majegowda S/o. Late. Boregowda Aged about 40 years V.G. Koppalu Village, Periyapatna Taluk, Mysore District – 571108

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Sri. Harisha S/o. Late. Boregowda Aged about 38 years V.G. Koppalu Village, Periyapatna Taluk, Mysore District – 571108

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OA. No.127/2023

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Smt. Jayalakshmi W/o. Jagannath Aged about 56 years 552, “A” Block, HUDCO, Bannimantap Mysore - 570015

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Smt. Jayamma W/o. Krishne Gowda Channakeshava Pura village, Haranahalli Hobli, Periyapatna Talk, Mysore District – 571107

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Sri. Venugopal S/o. Jayaramu V N Aged about 55 years 1562, Rudrappa Badavane Periyapatna Town & Taluk Mysore District ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. G Lokesh Murthy 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 for seeking issuance of Recovery Certificate against the defendants for Rs.24,71,897/- (Rupees Twenty Four Lakh Seventy One Thousand Eight Hundred and Ninety Seven only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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OA. No.127/2023

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

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i. Residential housing loan of Rs.2,00,000/- on 25.03.2010;

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ii. Tobacco cultivation crop loan under Kissan Credit card scheme of Rs.3,40,300/- on 09.05.2013;

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iii. Term loan of Rs.5,69,000/- on 12.08.2014;

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iv. Personal loan of Rs.75,000/- on 25.08.2014 and

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v. Tobacco Barn repair loan of Rs.75,000/- on 07.05.2015

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

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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 account 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

OA. No.127/2023

25.11.2025.

The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A46 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

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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

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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 facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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

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OA. No.127/2023

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within the limitation.

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Hence in view of the above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility

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was availed for various 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 of 8.00%

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p.a.(simple).

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In the result, OA.No.127/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.24,71,897/- (Rupees Twenty Four Lakh Seventy One Thousand Eight Hundred and Ninety Seven only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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OA. No.127/2023

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their other assets are liable

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for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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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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with this Final Order.

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14. 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 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July 2026].

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(T. RAJESH) PRESIDING OFFICER

OA. No.127/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Praveen, Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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SL. NO	ANNEXUR ES		DESCRIPTION
1.	A-1	Original 20.03.20	Housing loan appli 10.	cation	dated
2.	A-2	Original 20.03.20	Housing loan Sanctio 10	n letter	dated
3.	A-3	Original agreeme 25.03.20	Memorandum of nt for Housing 10	Term Loan	loan dated
4.	A-4	Original 04.03.20	Simple Mortgage 10.	Deed	dated
5.	A-5 to A-9	Original 24.02.20 13.12.20	Revival letter dated 16, 23.01.2019, 21	06.03 24.12	.2013, .2019,
6.	A-10	Original 09.05.20	Crop Loan appli 13.	cation	dated
7.	A-11	Original 09.05.20	Crop loan Sanction 13, with Terms and C	letter ondition	dated s.
8.	A-12	Original 09.05.20	Hypothecation Agre 13	ement	dated
9.	A-13	Original 03.05.20	Simple Mortgage 13.	Deed	dated

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OA. No.127/2023

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10.	A-14 to A- 16	Original Revival Letters dated 20.04.2016, 20.02.2019, 13.12.2021
11.	A-17	Original Loan application for Agricultural Term Loan dated 12.08.2014
12.	A-18	Original Sanction Letter with Terms and Conditions dated 12.08.2014
13.	A-19	Original Hypothecation Agreement dated 12.08.2014
14.	A-20	Original Simple Mortgage Deed dated 15.07.2014.
15.	A-21 to A- 23.	Original letter of revival dated 02.08.2017, 20.07.2020, 13.12.2021.
16.	A-24	Original Personal Loan application dated 25.08.2014
17.	A-25	Original Sanction Terms and Conditions dated 25.08.2014
18.	A-26	Original Demand Promissory Note and Delivery letter to Promissory Note dated 25.08.2014.
19.	A-27	Original Personal Loan Agreement dated 25.08.2014
20.	A-28	Original Acknowledgement of Liability dated 24.08.2017.
21.	A-29 & A- 30	Original Revival Letter dated 20.07.2020 and 13.12.2021.

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OA. No.127/2023

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22.	A-31	Original Term loan Application dated 07.05.2015
23.	A-32	Original Sanction Term Loan Application dated 07.05.2015.
24.	A-33	Original Hypothecation Agreement dated 09.05.2015
25.	A-34 to A-36	Original Revival Letter dated 21.03.2018, 20.07.2020 and 13.12.2021
26.	A-37 & A38	Copy of Legal Notice dated 23.02.2022.
27.	A-39	Postal Acknowledgement
28.	A-40 & A- 41	Copy of Legal Notice dated 05.09.2022 and postal receipts
29.	A-42 to A-46	True extract of Five Statement of loan accounts 1) 42008102000610 2)12008130000044 3)42008326004814 4) 42008340002014 5)42008326004415

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Jayamma

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Jayamma

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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