Allowed

Karnataka Gramin Bank v. Boodibasava

DRT31 Jul 2026OA/1312/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by the bank seeking a Recovery Certificate. Upon unopposed evidence of loan av涤amout, mortgage, and default, the court awarded recovery of aggre grate sum with reduced interest of 6% p.a.

What did the court decide?

ISS of Recovery Certificate for Rs. 22,78,250 with interest at 6% p.a. (simple) from date of filing OA till realization, enforceable against defendants and schedule property.

Karnataka Gramin Bank versus Boodibasava — Contract and Commercial Disputes | 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

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Presiding Officer

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OA. No.1312/2024

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BETWEEN:

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Karnataka Grameena Bank Having a Branch at Gabbur, Gabbur Village, Devadurga Taluk, Raichur District-584111, Karnataka State Rep. by its Branch Manager

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… APPLICANT

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AND:

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Sri. Boodibasava S/o. Sri. Hanumantha Aged about 44 years R/at. House Maseedpura village, Ganekal Post, Gabbur Hobli, Devadurga Taluk, Raichur District-584136

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Sri. Ramakrishna Major by age S/o. Sri. Mallappa r/at. House Maseedpura village, Ganekal Post, Gabbur Hobli, Devadurga Taluk, Raichur District-584136 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. K. Raveendran 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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OA. No.1312/2024

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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.22,78,250/- (Rupees Twenty Two Lakh Seventy Eight Thousand Two Hundred and Fifty 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 the KCC loan of Rs.4.00 lakhs and ATL loan of Rs.5.00 lakhs from erstwhile Pragathi Krishna Gramin Bank on 17.12.2014.

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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.1312/2024

19.12.2024.

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 A24 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 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 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

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proved by the above documents. The claim of the applicant is well

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OA. No.1312/2024

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within the limitation.

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Hence in view of the above findings which cover both the 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 were availed for agricultural 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 6.00%

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p.a.(simple).

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In the result, OA.No.1312/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.22,78,250/- (Rupees Twenty Two Lakh Seventy Eight Thousand Two Hundred and Fifty only)with further interest of 6.00% 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.1312/2024

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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 jointly, severally and personally and their other assets are liable 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

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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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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 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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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA. No.1312/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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

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Exhibits on the part of the Applicant:

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Sl. No	DOCUMENTS	Exhibit Nos	PAGE NOS.
1	Application form cum Appraisal report for PKCC credit facilities dated 17.12.2014	Exhibit A1	31 – 36
2	Loan Sanction Conveying Letter dated 17.12.2014	Exhibit A2	37 - 38
3	Memorandum of Agreement for Agricultural loans dated 17.12.2014	Exhibit A3	39 – 46
4	Request for Agriculture Overdraft facilities/PKCC dated 17.12.2014	Exhibit A4	47 – 48
5	Undertaking Letter from the borrowers regarding notice of variations in the rate of interest on loans / advances dated 17.12.2014	Exhibit A5	49 – 50
6	Simple Mortgage Deed for KCC/OD facility to Agriculturists dated 01.01.2015	Exhibit A6	51 – 56
7	Letter of Revival dated 14.11.2017	Exhibit A7	57 – 58
8	Letter of Revival dated 02.07.2020	Exhibit A8	59 – 60
9	Letter of Revival dated 19.05.2023	Exhibit A9	61 – 62
10	Legal Notice dated 22.08.2023 with Translation	Exhibit A10	63 – 65
11	Legal Notice dated 23.08.2023 with Translation	Exhibit A11	66 - 68
12	Application form cum Appraisal report for Agricultural Term Loan credit facilities dated 18.05.2015	Exhibit A12	69 – 72

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OA. No.1312/2024

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13	Particulars of Co-obligant/guarantor details dated 18.05.2015	Exhibit A13	73 – 76
14	Sanction Conveying Letter dated 18.05.2015	Exhibit A14	77 – 78
15	Registered Simple Mortgage Deed dated 25.05.2015	Exhibit A15	79 – 83
16	Pronote along with Take Delivery Letter to DPN dated 26.05.2015	Exhibit A16	84 – 85
17	Agreement cum Deed of Hypothecation for Agricultural Loans dated 26.05.2015	Exhibit A17	86 – 89
18	Letter of Revival dated 18.05.2018	Exhibit A18	90 – 91
19	Letter of Revival dated 20.01.2021	Exhibit A19	92 – 93
20	Letter of Revival dated 30.12.2023	Exhibit A20	94 – 95
21	Legal Notice dated 22.08.2023	Exhibit A21	96 – 98
22	Legal Notice dated 23.08.2023	Exhibit A22	99 – 101
23	Statement of Account in respect of KCC account No. 6021535411017	Exhibit A23	102 – 105
24	Statement of Account in respect of ATL account No.60215315009215 along with interest calculation sheet & certificate	Exhibit A24	106 – 111

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Sd/(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Boodibasava

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Boodibasava

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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