Allowed

Karnataka Gramin Bank v. Amaregouda

DRT22 May 2026OA/1503/2023

Case brief

AI extract

What is this about?

In OA No. 1503/2023, the Tribunal allowed the bank's application for a recovery certificate. The defendants filed in absentia. The loan documents and defaults were uncontroverted. The Tribunal allowed the claim with interest reduced to 6% p.a. and directed recovery proceedings against the property and assets of the defendants.

What did the court decide?

Recovery Certificate issued for Rs. 42,60,102/- with future interest at 6% p.a. (Simple) to be recovered from defendants jointly and severally; steps taken against schedule property and assets.

Karnataka Gramin Bank versus Amaregouda — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 22^nd Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1503/2023

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BETWEEN:

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Karnataka Grameena Bank Toraladinni Branch Maski Taluk, Raichur District, Karnataka State-584120

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…APPLICANT

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AND:

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Sri. Amaregouda S/o. Gundappa Markamdinni, Maski Taluk, Raichur District-584120

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Sri. Hanumanagouda Dead by Legal Heir 2(a) Sri. Amaresh S/o. Late hanumanagouda Sunkanur, Maski Taluk, Raichur District-584120

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Sri. Mukappa S/o. Sri. Hanumanagouda Sunkanur, Maski Taluk, Raichur District-584120

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : G. Lokesh Murthy G. Srinivasan Defendants : Exparte

OA 1503/2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate Rs.42,60,102/- (Rupees forty two lakh sixty thousand one hundred and two 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 following credit facilities from the applicant bank:-

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I. ATL Loan of a sum of Rs.4,90,000/- (Rupees Four lakh ninety thousand Only) and

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II. KCC loan limit of Rs.1,50,000/- (Rupees One Lakh Fifty Thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with memorandum of agreement, simple mortgage deed and letters of revival in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting

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OA 1503/2023

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in defaults 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.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 22.08.2025.

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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-39 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 the 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 defendant?

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ii) What order are to be passed?

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OA 1503/2023

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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 defendant 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 hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this Tribunal find both these issues 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 facilities are availed by defendants for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced

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OA 1503/2023

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interest @6% p.a. (Simple).

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In the result, OA.No.1503/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.42,60,102/- (Rupees forty two lakh sixty thousand

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one hundred and two only) with further interest @6% p.a.

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(Simple),

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from the date of filing OA till the realization, from the defendants No.1 and 3 jointly severally and personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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No.1 & 3 are jointly severally and personally and their other assets are liable to be proceeded against for the balance amount.

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iii) Being the legal heir of Deceased borrower (Late Hanumanagouda), the defendant No.2(a) is liable to the extent of estate inherited by the deceased borrower.

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iv) The applicant bank is allowed cost of the proceedings

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OA 1503/2023

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

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in terms of this final order.

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14. 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 22^nd day of May, 2026].

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: A Chanduvardhan, Assistant Manager, of the Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1 & A2	17.05.2006	Original Agri credit- FML Loan application and letter of co-obligant
A3	20.05.2006	Original Loan sanction conveying letter

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OA 1503/2023

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A4	31.05.2006	Original memorandum of agreement for agricultural loan
A5	24.05.2006	Original simple mortgage
A6 to A15	29.04.2009, 11.04.2012, 09.05.2014 30.03.2019 09.03.2022 09.03.2022	Original revival letters executed by defendants acknowledgement of security
A16 to A19		Original 2 Authorisation letters to disburse the loan amount and RC B Extract tractor and trailer
A20 to A21	25.08.2007	Original Agricultural credit Crop loan (KCC) with letter of co-obligant
A22	01.09.2007	Original loan sanction conveying letter
A23 & A24	04.09.2007	Original request for Agricultural OD/KCC and Memorandum of agreement for crop loans
A25	31.08.2007	Original simple mortgage
A26 to A34	30.06.2010 30.05.2012 04.04.2016 13.11.2018 19.04.2021	Original revival letters acknowledgement of security
A35 to A37	10.12.2022	Office copy of legal notice account wise and with postal RPAD receipts
A38 to A39		Certified copy of 2 loan account statement

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

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-Nil -

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-Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Amaregouda

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Amaregouda

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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