Allowed

Karnataka Gramin Bank v. Smt Savithribai

DRT24 Jun 2026OA/1306/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of the RDB Act for issuance of a Recovery Certificate. The bank's claim was unanimously accepted due to ex-parte proceedings. The deemed reduced interest rate was set at 6.00% simple for agricultural purposes.

What did the court decide?

The applicant is allowed to recover Rs. 27,34,966.38 plus 6% simple interest from the date of filing OA till realization from the defendants to the extent of inheritance of estate after giving credit

Karnataka Gramin Bank versus Smt Savithribai — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1306/2023

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BETWEEN:

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Karnataka Gramin Bank

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Bandarwad Branch

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Afzal Taluk, Kalaburgi District,

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Respresented By Its Branch Manager …APPLICANT

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AND:

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Smt. Savithribai

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W/o. Late. Chandappa Ningappa Pujari Aged about 64 years

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Sri. Chatrappa ( Deleted )

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( vide order on 26.11.2024 )

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Sri. Ningappa S/o. Late Chandappa Ningappa Pujari Aged about 41 years

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Smt. Parvathi S/o. Late Jagadevappa Ningappa Pujari Aged about 48 years

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Sri. Shivanand S/o. Late Jagadevappa Aged about 48 years

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Sri. Chandrakanth S/o. Late Jagadevappa

OA 1306/2023

Aged about 47 years

Sri. Malkappagouda S/o. Late Jagadevappa Aged about 46 years

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Sri. Shekappa S/o. Late Chandappa Ningappa Pujari Aged about 50 years

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Sri. Suresh S/o. Late Chandappa Ningappa Pujari Aged about 44 years

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Sri. Mallappa S/o. Late Chandappa Ningappa Pujari Aged about 41 years

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Defendants 1 to 10 R/at: Hasargundagi Village, Afzalpur Taluk, Kalaburgi District ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : T S Mahabaleswara Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs. 27,34,966.38 (Rupees Twenty Seven Lakhs Thirty Four Thousand Nine Hundred and Sixty Six and Paisa Thirty

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OA 1306/2023

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Eight 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 are the legal heirs of the deceased borrower. The Late borrowers Chandappa Ningappa Pujari and Jagadevappa availed the credit facilities are:

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ATL Loan Rs 3,80,000/-(Rupees Three Lakhs Eighty Thousand Only) for the purpose of purchase of IP set and pipe lines lift irrigation etc.

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Crop loan of Rs.50,000/- (Rupees Fifty Thousand Only) for the purpose of growing the crops carryout agriculture operations etc.

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The deceased borrowers executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrower Chandappa Ningappa Pujari had also executed Simple Mortgage Deed dated 06.05.2009.

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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 defaults in repayment and consequentially turning the loan accounts as NPA.

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OA 1306/2023

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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 as against the defendants.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 14.11.2025.

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A25 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: i) Whether the applicant had succeeded in proving the

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OA claim as against the defendants?

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ii) What orders 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

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OA 1306/2023

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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 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 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 facilities are availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1306/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 27,34,966.38 (Rupees Twenty Seven Lakhs Thirty Four Thousand Nine Hundred Sixty Six Only) with further interest @6.00 % p.a.(simple from the date of filing OA till the

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OA 1306/2023

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realization, from the defendants, to the extent of their inheritance of any estate form the deceased borrowers Chandappa Ningappa Pujari and Jagadevappa after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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

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the liability, the defendants to the extent of their inherited form the deceased Chandappa Ningappa Pujari and Jagadevappa is liable to the proceeds against for the balance amount.

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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

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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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OA 1306/2023

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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 (MS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^th Day of june, 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: SachinKumar Teggin, Branch Manager, of the applicant bank.

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Exhibits on the part of the Applicant:

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Witness Examined for the Defendants:

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-Nil -

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Annexure	Particulars
A1	Loan agreement executed by late.chandappa pujari date 08.05.2009
A2	Guarantee agreement executed by late.jagadevappa date 08.05.2009
A3	Simple mortgage deed executed by late.chandappa pujari date 06.05.2009
A4	Death certificate of late.chandappapujari date 03.07.2014
A5	Revival letter executed by late.chandappa pujari date 15.04.2012
A6	Revival letter executed bylate.jagadevappa date 15.04.2012
A7	Revival letter executed by late.chandappa pujari date 01.04.2014
A8	Revival letter executed bylate.jagadevappa date 01.04.2014
A9	Revival letter executed by 3^rddefendant legal heirs of deceased borrowers date 15.02.2017
List of Docu	ments Exhibited for the Defendants: -Nil -

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OA 1306/2023

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	Revival letter executed by 7^thdefendant as legal heirs of
A10	deceased borrowers executed by defendant no.6 date 15.02.2017
A11	Revival letter legal heirs of deceased borrowers/ co obligent executed bydefendant no 3 date 10.01.2020
A12	Revival letter legal heirs of deceased co obligent executed by defendant no.7 date 10.01.2020
A13	Revival letter legal heirs of deceased borrowers/ co obligent executed bydefendant no.3 date 02.01.2023
A14	Revival letter executed by defendant no.7 legal heirs of deceased borrowers/co obligent date 02.01.2023
A15	Acknowledgement of security/liability executed by 3^rd defendant date 01.06.2019
A16	Office ciopyof legal notice date 02.05.2023
A17	Statement of account extract
A18	Loan agreement executed by late. Chandappa pujari date 13.07.2009
A19	Revival letter executed by late.chandappa pujari date 10.07.2012
A20	Revival letter executed by late.chandappa pujari date 10.07.2013
A21	Revival letter executed by3^rddefendant date 25.06.2016
A22	Revival letter executed by 3^rddefendant as heir of chandappa pujari date 20.05.2019
A23	Revival letter executed by 3^rddefendant as heir of chandappa pujari date 01.09.2021
A24	Office copyof legal notice date 02.05.2023
A25	Statement of account extract

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Sd /-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Smt Savithribai

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Smt Savithribai

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

All orders in this case

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