Allowed

Punjab National Bank v. Mr. Riyazahamed Ismail Killedar

DRT16 Sept 2026OA/1277/2024

Case brief

AI extract

What is this about?

This tribunal allowed an Original Application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, filed by Punjab National Bank against a borrower for the recovery of a defaulted loan amount. The defendant did not appear, leading to an ex parte decision. The bank proved the loan sanction, security documents, and defaults. The tribunal awarded the principal sum reduced interest at 6% per annum for agricultural purposes and directed the issuance of a Recovery Certificate executable against the mortgaged property and personal assets if insufficient.

What did the court decide?

Recovery Certificate issued for Rs. 23,77,392.65 with 6% simple interest from filing date; recoverable from defendant personally and against mortgage property; if proceeds insufficient, personal assets liable; costs awarded.

Punjab National Bank versus Mr. Riyazahamed Ismail Killedar — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 16^th Day of September, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1277/2024

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BETWEEN:

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Punjab National Bank Interalia branch Office at Gokak Branch, Belagavi District. Represented by its Chief Manager.

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…APPLICANT

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AND:

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Mr. Riyazahamed Ismail Killeadar S/o Ismail Killedar, Aged about 57 years, R/at Akkatangerahal Village & Post, Tehsil Gokak, Belagavi District.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Yogesh L Hiremath 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. 23,77,392.65/-

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(Rupees Twenty Three Lakh Seventy Seven Thousand Three Hundred Ninety Two and Paise Sixty Five Only) with further interest thereon from

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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. Term Loan of a sum of Rs. 5,50,000/- (Rupees Five lakh Only) for purchase of Tractor and Trailer.

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II. Crop Loan of sum of Rs. 1,25,000/- (Rupees One Lakh Twenty Five Thousand Only) on 11.12.2007which was enhanced time to time and finally enhanced to Rs. 4,00,000.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Sanction Letter, Agreement for Term Loan, Loan Agreement, Agreement for Hypothecation, Registered Deed of Mortgage of Agricultural Land.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant 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 defendant failed to appear, resulting the defendants being set exparte on 26.09.2025.

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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-15 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 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 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 as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant 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 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.1277/2024, stands allowed, i) The applicant is allowed to recovery an aggregate sum of Rs. 23,77,392.65/- (Rupees Twenty Three lakh Seventy Seven Thousand Three Hundred Ninety Two and Paise Sixty Five Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant 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 amount due and payable to the applicant bank, the defendant personally and his 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 16^th Day of September, 2026].

Sd/-

(T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Basavaraj, 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	02.12.2007	Loan Application
A2	03.12.2007	Sanction Letter
A3	11.12.2007	Agreement for Hypothecation of Live Stock existing
		and Future Crops to Secure Loan Amount
A4	11.12.2007	Agreement of Term Loan
A5	27.11.2007	Registered Deed of Agricultural Land
A6	01.05.2012	Loan Application
A7	08.05.2012	Sanction Letter

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A8	08.05.2012	Agreement for Hypothecation of Existing and Future Crops/ Movable Assets/ Live stocks to secure a cash credit Account of Original Green card
A9	08.05.2012	Registered Deed of Mortgage of Agricultural Land
A10	17.01.2020	B.C. Letter
A11	21.11.2022	B.C. Letter
A12	20.02.2023	Demand Notice
A13	--	Statement of Account extract in respect of A/c No. 10067511001367
A14	--	Certified as per the Banker’s Book of Evidence Act

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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

Punjab National Bank v. Mr. Riyazahamed Ismail Killedar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mr. Riyazahamed Ismail Killedar

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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