Allowed

Punjab National Bank v. Sri. Praveen Ningappa Idagichadi

DRT31 Jul 2026OA/1439/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an original application filed under Section 19 of the RDB Act for recovery of an agricultural loan. Finding the defendants ex parte and the evidence uncontroverted, the Tribunal ordered recovery of the principal amount with interest reduced to 6% simple.

What did the court decide?

Recovery of Rs. 23,75,664/- with further interest @6.00% p.a. (simple) from the date of filing OA till realization.

Punjab National Bank versus Sri. Praveen Ningappa… — 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 Presiding Officer OA NO.1439/2023

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BETWEEN:

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Punjab National Bank Branch office at: Gadag Branch, Gadag District, Circle Office, Hubballi, RS no. 98/4, 3^rd Floor, Centrum Mall, Gokul Road, Hubballi – 580 030

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Rep by its Senior Manager

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…APPLICANT

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AND:

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Sri. Praveen Ningappa Idagichadi S/o. Ningappa Aged about 38 years Residing at: Hombal Village, Gadag Taluk, Gadag District

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Sri. Gurunath S Handigol S/o. Shivaji Aged Major Residing at: Hombal Village, Gadag Taluk, Gadag District …DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M R Shashidhar Defendants : Ex parte

OA-1439/2023

FINAL ORDER:

The Original Application (OA) has been filed under Section 19 of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of sum of 23,75,664/- (Rupees Twenty-Three Lakhs Seventy-Five Thousand Six Hundred Sixty-Four Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed an agricultural loan of Rs. 9,00,000/- (Rupees Nine Lakhs Only) for the purpose for raising of crops.

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It is also the case of the applicant that, in view of the above

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availed loan, the defendants executed the necessary loan document along with Registered mortgage deed & Hypothecation agreement.

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It is further contended that, despite availing the credit facility,

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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 accounts as NPA.

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In the above circumstances, the applicant approached this

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Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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OA-1439/2023

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Despite, service of summons on the defendants, they failed to

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appear, resulting the defendants being set ex parte on 18.12.2025.

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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-12 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 remains unrebutted as defendants remained ex parte. 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 the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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OA-1439/2023

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due are also proved by the above document. 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 are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility is 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

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that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1439/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 23,75,664/- (Rupees Twenty-Three Lakhs Seventy-Five Thousand Six Hundred Sixty-Four Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, 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 the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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OA-1439/2023

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

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amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for balance amounts due under the loan accounts.

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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

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receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), 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/- (T. RAJESH) PRESIDING OFFICER

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OA-1439/2023

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Dilawarsahib Belkeri, S/o. Jamalsab Belkeri, Assistant Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Registered mortgage deed dated 26.06.2013
A2	Loan application dated 20.06.2013
A3	Letter of sanction dated 27.06.2013
A4	Hypothecation agreement dated 27.06.2013
A5	Letter of undertaking dated 27.06.2013
A6	Letter of consent 27.06.2013
A7	Guarantee agreement dated 27.06.2013
A8 to a10	Balance and security confirmation letter dated 08.06.2016, 24.05.2019 and 21.05.2022
A11	The copy of the notice dated 01.08.2022
A12	The certified statements of accounts
Witness E	xamined for the Defendants: -Nil -
List of Do	cuments Exhibited for the Defendants: -Nil –

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Punjab National Bank v. Sri. Praveen Ningappa Idagichadi

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sri. Praveen Ningappa Idagichadi

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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