Allowed

Karnataka Gramin Bank v. Chandre Gowda T R

DRT24 Jul 2026OA/154/2025

Case brief

AI extract

What is this about?

DRT allowed the bank's application for a recovery certificate. The Tribunal found the defendants' default uncontradicted, reducing accrued interest to 9% for the certificate but granting post-presentation simple interest at 8%. The recovery certificate is issued against joint and several liability and schedule property.

What did the court decide?

Recovery Certificate issued for Rs.21,27,960.76 plus 8% simple interest post-filing, enforceable against defendants jointly, severally, personally, and sale proceeds from schedule property.

Karnataka Gramin Bank versus Chandre Gowda T R — 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

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Presiding Officer

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OA. No.154/2025

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BETWEEN:

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Karnataka Grameena Bank Periyapatna Branch Bettadapura Road, Periyapatna, Harnahalli Hobli and Post, Mysore District-571107 Rep. by its Branch Manager Sri. Ravindra B K

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… APPLICANT

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AND:

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T.R. Chandre Gowda S/o. Sri. Rame Gowda Aged about 55 years

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Residing at: Telaginakuppe Village, Bettadapura Post, Periyapatna Taluk, Mysore District – 571107

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Smt. Renukamma @ Renuka W/o. Sri. T.R. Chandre Gowda Major by age; Residing at: Telaginakuppe Village, Bettadapura Post, Periyapatna Taluk, Mysore District – 571107

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Sri. Sridhara S/o. Sri. Rame Gowda Aged about 29 years Residing at: Telaginakuppe Village, Bettadapura post, periyapatna taluk, Mysore District-571107

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OA. No.154/2025

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Sri. Srujan S/o. Chandre Gowda Aged about 32 years Residing at: Telaginakuppe Village, Bettadapura Post, Periyapatna Taluk, Mysore District – 571107

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Sri. T.R. Kale Gowda S/o. Sri. Raje Gowda Major by age, Residing at: Telaginakuppe Village, Bettadapura Post, Periyapatna Taluk, Mysore District – 571107

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Sri. H.C. Krishne Gowda S/o. Channe Gowda, Aged about 63 years Residing at Harnahalli Village, Periyapatna Taluk, Mysore District-571102

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Sri. T.J. Krishne Gowda S/o. Javare Gowda Aged about 55 years Residing at: Telagianakuppe village, Bettadapura Post, Periyapatna Taluk, Mysore District -571107

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Vijay S Defendants : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for

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OA. No.154/2025

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Rs.21,27,960.76 (Rupees Twenty One Lakh Twenty Seven Thousand Nine Hundred Sixty and Seventy Six Paisa 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 documents:

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i. Housing loan facility of Rs.2,00,000/- on 09.07.2010

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ii. Personal loan facility of Rs.50,000/- on 28.05.2014

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iii. Term loan facility of Rs.50,000/- on 28.05.2014

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iv. Crop loan facility of Rs.3,87,000/- on 22.07.2014

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v. Agricultural development loan facility of Rs.3,75,000/- on 14.03.2015

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vi. Term loan facility of Rs.30,000/- on 25.05.2015.

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

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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 account

OA. No.154/2025

as NPA.

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 27.11.2025.

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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 A56 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

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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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OA. No.154/2025

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The case put forth by the applicant in the Application

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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 facilities 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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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 facilities

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were availed for housing purpose and business purpose, 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 9.00% p.a.(simple).

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OA. No.154/2025

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In the result, OA.No.154/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.21,27,960.76 (Rupees Twenty One Lakh Twenty Seven

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Thousand Nine Hundred Sixty and Seventy Six Paisa only) with further interest of 8.00% p.a.(simple) from the date of filing OA

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till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also 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

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the amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their other assets are liable

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for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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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 and transferred to Recovery for execution.

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OA. No.154/2025

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

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with 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 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), 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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(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. Ravindra B K, Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit Number
1	04.07.2010	Loan application	A1
2	09.07.2010	Loan sanction letter	A2
3	09.07.2010	Memorandum of Term loan agreement for housing loan granted to public executed by defendant No.1 in favour of the applicant bank	A3
4	07.07.2010	Mortgage deed executed by the defendant No.1 and 2 in favor of the applicant bank	A4
5	09.07.2010	Guarantee agreement executed by defendant No.5	A5

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OA. No.154/2025

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6	30.06.2013	Acknowledgment of liability executed by defendant No.1	A6
7	24.06.2016	Acknowledgment of liability executed by defendant No.1	A7
8	31.03.2019	Acknowledgment of liability by defendant No.4	A8
	18.06.2021	Acknowledgment of
9		Security/liability mortgagors executed by defendant No.1	A9
10	13.06.2019	Letter of Revival executed by defendant No.1	A10
11	09.03.2022	Letter of Revival executed by defendant No.1	A11
12	--	Statement of account	A12
13	28.05.2014	Loan application	A13
14	28.05.2014	Loan sanction letter	A14
15	28.05.2014	On demand promissory note executed by defendant No.1	A15
16	28.05.2014	Personal loan agreement executed by defendant No.1 and 6	A16
17	28.05.2014	Guarantee agreement executed by defendant No.6	A17
18	22.05.2017	Acknowledgment of liability executed by defendant No.1	A18
19	29.03.2019	Acknowledgment of liability executed by defendant No.1	A19
20	22.05.2017	Letter of commitment executed by defendant No.1	A20
21	15.05.2020	Letter of Revival executed by defendant No.1	A21
22	08.03.2023	Letter of Revival executed by defendant No.1	A22
23	--	Statement of account	A23
24	28.05.2014	Loan application	A24
25	28.05.2014	Loan sanction letter	A25
26	28.05.2014	Agreement to mortgage executed by defendant No.1	A26
27	22.05.2017	Acknowledgment of liability executed by defendant No.1	A27

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OA. No.154/2025

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28	15.05.2020	Letter of Revival executed by defendant No.1	A28
29	08.03.2023	Letter of Revival executed by defendant No.1	A29
30	--	Statement of account	A30
31	22.07.2014	Loan application	A31
32	22.07.2014	Loan sanction letter	A32
33	22.07.2014	Simple mortgage deed executed by defendant No.1, 3 and 4	A33
34	10.07.2017	Acknowledgment of liability executed by defendant No.1	A34
35	15.05.2020	Letter of Revival executed by defendant No.1	A35
36	08.03.2023	Letter of Revival executed by defendant No.1	A36
37	--	Statement of account	A37
38	14.03.2015	Loan application	A38
39	14.03.2015	Loan sanction letter	A39
40	14.03.2015	Agreement to mortgage executed by defendant No.1	A40
41	14.03.2015	Simple mortgage deed executed by defendant No.1,3 and 4	A41
42	01.03.2018	Acknowledgment of liability executed by defendant No.1	A42
43	29.03.2019	Acknowledgment of liability executed by defendant No.1	A43
44	08.03.2018	Letter of commitment executed by defendant No.1	A44
	10.03.2018	Acknowledgment of liability
45		executed by defendant No.1 in favour of the applicant bank	A45
46	15.05.2020	Letter of Revival executed by defendant No.1	A46
47	08.03.2023	Letter of Revival executed by defendant No.1	A47
48	--	Statement of account	A48
49	25.05.2015	Loan application	A49
50	25.05.2015	Loan sanction letter	A50

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OA. No.154/2025

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51	25.05.2015	On demand promissory note executed by defendant No.1	A51
52	22.05.2017	Acknowledgment of liability executed by defendant No.1	A52
53	15.05.2020	Letter of revival executed by defendant No.1	A53
54	18.03.2023	Letter of Revival executed by defendant No.1	A54
55	18.06.2024	Legal notice issued by the applicant bank	A55
56	--	Statement of account	A56

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Chandre Gowda T R

Case brief

What is this about?

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Karnataka Gramin Bank v. Chandre Gowda T R

Case brief

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