Allowed

Karnataka Gramin Bank v. Niranjan

DRT24 Jul 2026OA/1527/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by the bank to issue a Recovery Certificate. The Tribunal upheld the bank's claim for Rs. 24.26 lakh based on tractors and crop loans, imposing a reduced interest rate of 6% per annum due to the absence of the respondents.

What did the court decide?

Issuance of Recovery Certificate for Rs. 24.26 lakh with 6% p.a. interest, enforceable against mortgaged/schedule properties and defendants' other assets.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of July 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1527/2023

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BETWEEN:

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Karnataka Grameena Bank Holenarasipura Branch, Hassan District, Karnataka

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… APPLICANT

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AND:

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Mr.Niranjan H.S

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S/o. Late. Siddappa, Chikkanahalli Village, Hoskote Hobli,

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Holenarisipura Taluk

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Hassan-573211.

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Mrs.Chandrakala W/o.Niranjan H S Chikkanahalli Village, Hoskote Hobli, Holenarisipura Taluk Hassan-573211

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Mrs.Hemalatha W/o.Niranjan H S Chikkanahalli Village, Hoskote Hobli, Holenarisipura Taluk Hassan-573211.

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2 OA No.1527/2023

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Mr.Lankesh Kumar S/o.Niranjan H S Chikkanahalli Village, Hoskote Hobli, Holenarisipura Taluk Hassan-573211.

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Mr.Lokesh S/o.Lakkegowda Chikkanahalli Village, Hoskote Hobli, Holenarisipura Taluk Hassan-573211

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Mrs.Sahana D/o.Niranjan H S Chikkanahalli Village, Hoskote Hobli, Holenarisipura Taluk Hassan-573211. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : SMT. Sheela Deepak Defendant : 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 defendants for Rs.24,26,918.48/- (Rupees Twenty-Four Lakhs Twenty-Six Thousand Nine Hundred Eighteen and Paisa Forty-Eight Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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3 OA No.1527/2023

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The Defendants availed a sum of Rs.4,80,000/- (Rupees Four Lakh Eighty Thousand Only) for the purpose of purchase Tractor Loan and executed the loan documents.

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The Defendants availed a sum of Rs.1,00,000/- (Rupees One Lakh Only) for the purpose of grant Crop Loan and the defendant has executed loan documents.

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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. Apart from the creation of security interest by way of mortgage and hypothecation 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 defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan account 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 25.09.2024.

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4 OA No.1527/2023

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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 A15 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 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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5 OA No.1527/2023

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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 Tractor Vehicle and Crop Loan 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.1527/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.24,26,918.48/- (Rupees Twenty-Four Lakhs Twenty-Six Thousand Nine Hundred Eighteen Paisa Forty-Eight Only) with further interest of 6.00% p.a.(simple) from defendants after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to 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 found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly severally and his other assets are liable for all such amounts due in respective loan accounts.

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6 OA No.1527/2023

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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

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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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Communicate a copy of the order to the parties concerned in terms 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 24^th Day of July 2026].

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Sd/(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: Sri. Madan.S, 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	Exhibit Number
1.	Application for Tractor Loan by the Defendant dated 17.03.2006	A1
2.	Sanction Letter for Tractor Loan by Applicant Bank to defendant for Rs.4,80,000/- dated 22.03.2006	A2

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7 OA No.1527/2023

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3.	Agreement to Mortgage	A3
4.	Supplementary Agreement of Hypothecation executed by the defendant executed by the defendant in favaour of the applicant bank dated 28.03.2006	A4
	Letter of Declaration executed by the
5.	Defendant in favour of applicant bank dated 28.03.2006	A5
	Registration Certificate of a Tractor NO.KA 13-
6.	TA429 issued by the Assistant Regional Transport officer of Hassan	A6
	Registration Certificate of Trailer KA 13 TA 430
7.	issued by the Assistant Regional Transport Officer of Hassan	A7
8.	Statement of accounts along with interest A/c No.42064325000106	A8
9.	Loan application for crop loan dated 10.06.2006	A9
10.	Advance sanction communication dated 28.06.2006	A10
11.	Crop Loan Agreement	A11
12.	Agreement to mortgage	A12
13.	Statement of accounts along with interest A/c No.12064130000017 with certificate under Bankers Book of Evidence Act 1891	A13
14.	Recall Notice dated 29.09.2022	A14
15.	Legal Notice dated 18.01.2023	A15

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Sd/(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Niranjan

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Niranjan

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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