Allowed

Pragathi Krishna Gramin Bank v. Hanamanth Hanumanthraya

DRT24 Feb 2026OA/1451/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by a bank branch seeking a recovery certificate against two defendants for outstanding loan amounts. The defendants appeared ex parte. The court reduced the interest rate to 6% simple and directed recovery against schedule properties.

What did the court decide?

Recovery Certificate issued for Rs. 33,43,325.25 plus 6% simple interest. Recovery directed against schedule properties jointly and severally.

Pragathi Krishna Gramin Bank versus Hanamanth… — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of February, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1451/2023

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BETWEEN:

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Karnataka Grameena Branch Narona Branch, Aland Taluk, Kalaburgi District

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Represented by its Branch Manager

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Sri. Arun Kumar …APPLICANT

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AND:

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Sri. Hanamanth

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@ Hanumanthraya S/o. Devappa Doddamani Aged about 54 years

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Sri. Guranna S/o. Devappa Doddamani Aged about 63 years

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Both are r/at: Tellur Villge, Gola Post, Aland Taluk, Kalaburagi District – 585 311 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. T S Mahabaleswara Defendants : Ex part

OA-1451/2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 33,43,325.25/- (Rupees Thirty Three Lakhs Forty Three Thousand Three Hundred and Twenty Five and Paisa Twenty Five 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 the following credit facilities:

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Term loan of Rs. 5,25,000/- (Rupees Five Lakhs Twenty Five Thousand Only) for the purpose of purchase of tractor & trailer and accessories.

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Crop loan of Rs. 1,00,000/- (Rupees One Lakhs Only) for purpose of agricultural.

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Term loan of Rs. 1,00,000/- (Rupees One Lakhs Only) for purpose of land development.

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KCC loan of Rs. 50,000/- (Rupees Fifty Thousand Only) for the purpose of agriculture

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with simple mortgage deed.

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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 accounts as NPA.

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OA-1451/2023

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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.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 10.12.2024.

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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-34 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 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

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sufficient to prove availment of credit facilities as stated in the OA, creation of the security interest and the defaults committed in the

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OA-1451/2023

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accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the

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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

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Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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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.1451/2023 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs.

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33,43,325.25/- (Rupees Thirty Three Lakhs Forty Three Thousand

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Three Hundred and Twenty Five and Paisa Twenty Five Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till

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the realization, from the defendants jointly, severally and personally,

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after giving credit to all the amounts recovered and received during

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the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to

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the OA be the schedule to the recovery certificate.

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OA-1451/2023

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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

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jointly, severally and personally and their assets are liable for all such

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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 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

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the Open Court, this the 24^th Day of February, 2026].

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA-1451/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Sri. Arun Kumar, S/o. Sri. Shivayogi, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	21.02.2009	Loan agreement executed by defendants
A2	05.02.2009	Mortgage deed executed by defendants
A3 & A4	02.01.2012	Revival deed executed by defendants
A5 & A6	10.01.2015	Revival deed executed by defendants
A7	22.12.2017	Revival deed executed by defendants
A8	15.12.2020	Revival deed executed by defendants
A9	10.01.2019	Acknowledgement of liability executed by defendants
A10	06.12.2022	Legal notice
A11	------	Statement of account extract
A12	03.03.2010	Loan agreement executed by defendants
A13	03.03.2010	Simple mortgage deed executed by defendant no.2
A14	01.01.2013	Revival deed executed by defendant no.2
A15	11.11.2015	Revival deed executed by defendant no.2
A16	20.09.2018	Revival deed executed by defendant no.2
A17	13.07.2021	Revival deed executed by defendant no.2
A18	------	Statement of account extract
A19	03.03.2010	Loan agreement executed by defendant no.2
A20	03.03.2010	Simple mortgage deed executed by defendant no.2
A21	24.12.2012	Revival deed executed by defendant no.2

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OA-1451/2023

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A22	12.12.2015	Revival deed executed by defendant no.2
A23	25.10.2018	Revival deed executed by defendant no.2
A24	04.09.2021	Revival deed executed by defendant no.2
A25	09.02.2021	Acknowledgement of liability executed by defendant no.2
A26	06.12.2022	Legal notice
A27	-------	Statement of account extract
A28	15.03.2010	Loan agreement executed by defendant no.1
A29	11.01.2013	Revival deed executed by defendant no1
A30	27.12.2015	Revival deed executed by defendant no.1
A31	13.11.2018	Revival deed executed by defendant no.1
A32	04.10.2021	Revival deed executed by defendant no.1
A33	09.11.2022	Legal notice
A34	--------	Statement of account extract

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Pragathi Krishna Gramin Bank v. Hanamanth Hanumanthraya

Case brief

What is this about?

What did the court decide?

Pragathi Krishna Gramin Bank v. Hanamanth Hanumanthraya

Case brief

What is this about?

What did the court decide?

What the court decided

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