Allowed

Karnataka Gramin Bank v. Deveeramma

DRT20 Aug 2026OA/1463/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Karnataka Grameena Bank for issuance of a Recovery Certificate against defaulting agricultural borrowers. The court granted relief with reduced interest at 6% p.a., emphasizing the agricultural nature of the loan as a mitigating factor.

What did the court decide?

Recovery Certificate issued for Rs.30,37,523/- with further interest @ 6% simple p.a. from the date of filing, recoverable from schedule property. Other assets liable if sale proceeds are insufficient

Karnataka Gramin Bank versus Deveeramma — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 20^th Day of August 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1463/2023

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BETWEEN:

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Karnataka Grameena Bank Periyapattana Branch Mysore Road, Bettadapura Road, Periyapatna Taluk, Mysore-571107

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…APPLICANT

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AND:

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Smt.Deveeramma

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W/o.Late.Lakkaiah

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Sri.Nagaraju

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S/o.Late.Lakkaiah

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Sri.Chalavaraju S/o.Late.Lakkaiah

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Sri.Kantharaju S/o.Late.Lakkaiah

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Sri.Mahadevaiah S/o.Late.Boraiah

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Nos.1 to 5 are residing at:

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Hemmige Colony Hanagodu Hobli Hunsur Taluk, Mysore District-571107

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2 OA No.1463/2023

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Sri.Cheluvaraju S/o.Late.Srikantaiah R/at: Devaraj Colony, Harinahally Post, Hunsur Taluk, Mysore District-571107

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : HSR & Associates 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 for seeking issuance of Recovery Certificate against the defendant for Rs.30,37,523/- (Rupees Thirty Lakhs Thirty-Seven Thousand Five Hundred and Twenty-Three Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendant No.1 is the mother of the defendant Nos.2 to 4. The Defendant No.1 is the borrower, the Defendant Nos.2 to 4 are mortgagors of the Schedule Property along with the Defendant No.1 and the Defendant Nos.5 to 6 are the Co-borrowers with the Defendant No.1. The Defendants are agriculturist.

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3 OA No.1463/2023

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The Defendant No.1 availed

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a) KCCS Loan of Rs.5,17,000/- (Rupees Five Lakh Seventeen Thousand Only)

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b) Agri Term Loan of Rs.4,00,000/- (Rupees Four Lakh Only)

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c) Agri Term Loan for Bran Repair of Rs.1,00,000/- (Rupees One Lakh Only)

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The Defendants Nos.1 & 5 availed Rs.50,000/- (Fifty Thousand Only) for purpose Fuel Loan.

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The Defendant Nos.1 to 4 have offered the Schedule Property as security for the above said three loans sought by the Defendant No.1. The Defendant No.5 offered to be the Co-borrower for the 3^rd Agri Term Loan for Barn Repair of Rs.1,00,000/- The Defendant Nos.1 to 4 are the owners of the Schedule property.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents, being owner of the schedule properties. Apart from the creation of security interest by way of mortgage, over the Schedule properties.

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It is further contended that, despite availing the credit facility, 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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4 OA No.1463/2023

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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 defendant being set exparte on 13.10.2025.

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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 A1 to A29 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 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 facility as stated in the OA, creation of security interest

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5 OA No.1463/2023

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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 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 facility was 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% p.a.(simple).

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In the result, OA.No.1463/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.30,37,523/-(Rupees Thirty Lakhs Thirty-Seven Thousand Five Hundred and Twenty-Three Only) with further interest @ 6% (simple) p.a from the defendants after giving credit to all the amounts recovered and received during the pendency of the OA if any, in the loan account and allowed the same to be recovered by proceeding the schedule properties. The schedule property to the OA be the schedule property to the Recovery Certificate.

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6 OA No.1463/2023

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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 and his

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other assets are liable for all such amounts due in loan account.

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iii) The applicant bank is allowed cost of the proceeding which

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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 transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with

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this Final Order.

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17. 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 (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 20^th Day of August 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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7 OA No.1463/2023

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.Ravindra B.K, Senior Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents		Date	Exhibit Number
1.	Two Loan applications submitted by Defendant No.1	the	26.11.2014	A1 & A2
2.	Loan application submitted by Defendant Nos.1 & 5	the	26.11.2014	A3
3.	Three Sanction Memorandum issued the Applicant Bank	by	26.11.2014	A4 to A6
4.	Two Memorandum of Agreement Agricultural Loans dated executed by Defendant No.1 in favour of the Applic Bank.	for the ant	26.11.2014	A7 & A8
5.	Memorandum of Agreement Agricultural Loans dated executed by Defendant Nos.1 & 5 in favour of Applicant Bank.	for the the	26.11.2014	A9
	Simple Mortgage Deed executed by	the
6.	Defendant Nos.1 to 4 in favour of Applicant Bank.	the	26.11.2014	A10
7.	Acknowledgement of Liability executed the Defendant No.1	by	20.09.2017	A11
8.	Letter of Revival executed by Defendant Nos.1 & 4	the	27.08.2020	A12
9.	Acknowledgement of Lability executed the Defendant Nos.1 & 5	by	20.09.2017, 01.09.2017	A13 & A14
10.	Letter of Revival executed by Defendant Nos. 1 & 5	the	27.08.2020	A15
11.	Acknowledgment of Liability executed the Defendant Nos.1 & 5	by	20.09.207, 01.09.2017	A16 & A17
12.	Letter of Revival executed by Defendant Nos. 1 & 5	the	27.08.2020	A18
13.	Loan Application submitted by Defendant Nos.1 & 6	the	30.03.2015	A19

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8 OA No.1463/2023

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14.	Sanction Memorandum issued by the Applicant Bank	30.03.2015	A20
15.	ON Demand Promissory Note for Rs.50,000/- executed by the Defendant Nos. 1 to 6	30.03.2015	A21
16.	Acknowledgement of Liability executed by the Defendant No.1	20.09.2017	A22
17.	Letter of Revival executed by the Defendant Nos. 1 & 4	27.08.2020	A23
18.	Office copy of the Legal Notice Postal Receipt and Postal Ack Card.	31.01.2022	A24 & A25
19.	4 Nos of Certified Account Extracts of the Defendant No.1 maintained by Applicant Bank in usual and ordinary course of business.		A26 to A29

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Sd/(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Deveeramma

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Deveeramma

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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