Allowed

Karnataka Vikas Grameena Bank v. shivavva gangappa sheregar

DRT30 Jan 2026OA/150/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank applicant's Original Application filed under Section 19 RDB Act. Being satisfied with evidence regarding the deceased borrower's default and liabilities, the Tribunal issued a recovery certificate against defined parties and property.

What did the court decide?

Recovery certificate issued for Rs. 56,39,569/- plus 6% p.a. simple interest from filing date against respondents

Karnataka Vikas Grameena Bank versus shivavva gangappa sheregar — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.150/2022

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BETWEEN:

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Karnataka Grameena Bank Hosur Branch, Savadatti Taluk, Belgaum District – 591 111

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Represented by its Branch Manager

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Sri. Vinayak Shankar Airsang …APPLICANT

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AND:

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Sri. Gangappa Sadeppa Sheregar (Since dead by his LR’s)

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1(a). Smt. Shivavva Gangappa Sheregar W/o. late Gangappa Sadeppa Sheregar

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Major by age

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Residing at: Ingalegi Village,

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Hosur Road, Savadatti Taluk,

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Belgaum District – 591 111

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1(b). Sri. Mahantesh Sadeppa Sheregar S/o. late Gangappa Sadeppa Sheregar

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Major by age

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Residing at: Ingalegi Village, Hosur Road, Savadatti Taluk, Belgaum District – 591 111

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1(c). Sri. Gulappa Gangappa Sheregar S/o. late Gangappa Sadeppa Sheregar

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Major by age Residing at: Ingalegi Village, Hosur Road, Savadatti Taluk, Belgaum District – 591 111

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1(d). Sri. Huchappa Gangappa Sheregar S/o. late Gangappa Sadeppa Sheregar

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OA-150/2022

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Major by age Residing at: Ingalegi Village, Hosur Road, Savadatti Taluk, Belgaum District – 591 111

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1(e). Sri. Maruthi Gangappa Sheregar S/o. late Gangappa Sadeppa Sheregar Major by age Residing at: Ingalegi Village, Hosur Road, Savadatti Taluk, Belgaum District – 591 111

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Sri. Madivalappa Dhareppa Jadi S/o. Dhareppa Jadi Major by age Residing at: Hosur Village, Savadatti Taluk, Belgaum District – 591 111 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M Mohan Rao Defendant no. 1 : Deceased Defendant nos. 1(a to e) & 2 : Ex parte

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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 seeking for issuance of Recovery Certificate against the defendants for Rs. 56,39,569/- (Rupees Fifty Six Lakhs Thirty Nine Thousand Five Hundred and Sixty Nine Only) with further interest thereon from the date of filing the Application till realization.

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OA-150/2022

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It is the case of the applicant that, the deceased borrower Sri. Gangappa Sadeppa Sheregar, who expired during the pendency of OA have availed an tractor loan of Rs. 8,00,000/- (Rupees Eight Lakhs Only) for purchase of tractor and trailer.

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It is also the case of the applicant that, in view of the above financed credit facility, the deceased borrower Sri. Sri. Gangappa Sadeppa Sheregar executed necessary loan documents. Apart from the creation of security interest by way of simple mortgage deed over the schedule property.

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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 accounts 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. 6. Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 04.12.2024.

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The applicant had let in evidence through AW-3, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A-19 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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OA-150/2022

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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 sufficient to prove availment of credit facility as stated in the OA,

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount 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

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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 facility are

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availed for Agricultural purpose and also that the OA claim is arrived

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OA-150/2022

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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.150/2022 stands allowed,

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

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56,39,569/- (Rupees Fifty Six Lakhs Thirty Nine Thousand Five Hundred and Sixty Nine Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no. 1(a to e) & defendant no. 2, to the extent of their inheritance of any estate of deceased borrower Sri. Gangappa Sadeppa Sheregar, after giving credit to all the amount recovered and 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 sufficient to clean the liability defendant no. 1 (a to e) & defendant no. 2 are liable to the extent of estate they inherited from deceased Sri. Gangappa Sadeppa Sheregar for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings 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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OA-150/2022

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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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14. 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 30^th Day of January, 2026].

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Sd/-

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(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 Nithin Shravankumar Kamble, S/o. Shravankumar T Kamble, Senior 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.
A3	30.09.2005	Notification with respect to formation of Karnataka Vikasa Grameena bank
A4	12.05.2007	Loan application
A5	24.04.2007	Quotation issued by Dasanur and company and JB agro industries
A6	04.06.2007	Sanction letter

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OA-150/2022

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A7	13.06.2007	Consideration receipt for Rs. 8,00,000/- executed by deceased borrower Sri. Ganagppa Sadeppa Sheregar
A8	13.06.2007	Agreement for agricultural advances for Rs. 8,00,000/- executed by deceased borrower Sri. Ganagppa Sadeppa Sheregar
A9	13.06.2007	Guarantee agreement executed by defendant no. 5 in favour of the applicant bank
A10	12.06.2007	Mortgage deed executed by deceased borrower Sri. Ganagppa Sadeppa Sheregar in favour of the applicant bank
A11	13.06.2007	Letter of declaration executed by deceased borrower Sri. Ganagppa Sadeppa Shergar
A12	21.07.2006	Confirmation of delivery of machinery/vehicle executed by deceased borrower Sri. Ganagppa Sadeppa Sheregar
A13	20.12.2013	On demand promissory note along with revival letter for time barred debt executed by defendant no.4 & 5 in favour of the applicant bank
A14	11.12.2013	On demand promissory note along with revival letter for time barred debt executed by defendant no.1 & 2 in favour of the applicant bank
A15	21.12.2018	On demand promissory note along with revival letter for time barred debt executed by defendant no.1 & 2 in favour of the applicant bank
A16	21.12.2018	On demand promissory note along with revival letter for time barred debt executed by defendant 5 in favour of the applicant bank
A17	03.08.2021	Legal notice issued by applicant bank to the defendants
A18	-------	Served acknowledgement
A19	-------	Statement of account
Witness	Examined fo	r the Defendants: -Nil -
List of D	ocuments Ex	hibited for the Defendants: -Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Karnataka Vikas Grameena Bank v. shivavva gangappa sheregar

Case brief

What is this about?

What did the court decide?

Karnataka Vikas Grameena Bank v. shivavva gangappa sheregar

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

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