Allowed

Karnataka Gramin Bank v. Dattamma and Another

DRT27 Mar 2026OA/1568/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of the RDB Act for issuance of a Recovery Certificate. After the defendants filed ex parte, the Bank proved loan defaults and mortgage. The Court ordered recovery of Rs. 22,15,831.81 with reduced simple interest of 6%.

What did the court decide?

Recovery Certificate allowed for Rs. 22,15,831.81 plus 6% simple interest from filing date till realization against defendants and schedule properties.

Karnataka Gramin Bank versus Dattamma and Another — Money Laundering | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of March, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1568/2025

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BETWEEN:

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Karnataka Gramin Bank Head office at: No. 32, Sanganakal road, Gandhinagar, Ballari, Karnataka – 583 103 Branch office at: Dongarmpur branch, Raichur taluk, Raichur district

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Represetend by Branch Manager Sri. Dara Rajashekar …APPLICANT

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AND:

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Smt. Dattamma W/o. Alur Rangappa Aged about 60 years

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Sri. K Mallesh S/o. Mahadevappa Aged about 42 years

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Both are residing at: Athkur village, Raichur taluk, Raichur district ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Mohamed Afroze Ahamed Defendants : Ex parte

OA-1568/2025

FINAL ORDER

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. 22,15,831.81/- (Rupees Twenty-Two Lakhs Fifteen Thousand Eight Hundred and Thirty-One and Paisa Eighty-One Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed the following credit facilities:

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Kisan OD loan of Rs. 2,70,000/- (Rupees Two Lakhs Seventy Thousand Only).

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KCC loan of Rs. 1,57,000/- (Rupees One Lakh Fifty-Seven Thousand Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with Registered mortgage deed.

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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 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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OA-1568/2025

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 23.03.2026.

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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-28 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 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 facilities as stated in the OA,

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creation of the security interest and the defaults committed in the

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accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the

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OA-1568/2025

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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 facilities is availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1568/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 22,15,831.81/- (Rupees Twenty-Two Lakhs Fifteen Thousand Eight Hundred and Thirty-One and Paisa Eighty-One Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during

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the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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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 jointly, severally and personally and their assets are liable for all such

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OA-1568/2025

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of

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receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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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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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 27^th Day of March, 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 Shivaraj, S/o. Devendra, Manager, of Applicant Bank.

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OA-1568/2025

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Exhibits on the part of the Applicant:

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Exhibit Nos.	date	Particulars of Documents
A1	31.12.2009	Agreement and deed for kisan OD loan executed by the 1^stdefendant
A2	31.12.2009	Request for agreement overdraft facilities/KCC executed by the 1^stand 2^nddefendants
A3	31.12.2009	Undertaking letters from the borrowers regarding notice of variations in the rates of interest on loans/advances executed by the 1^stdefendant
A4	31.12.2009	Letter of attention/declaration
A5	19.12.2009	Registered mortgage deed executed by the 1^st defendant
A6	12.07.2012	Letter of revival deed executed by the 1^stand 2^nd defendants
A7	28.02.2015	Letter of revival deed executed by the 1^stand 2^nd defendants
A8	09.01.2018	Letter of revival deed executed by the 1^st defendant
A9	09.01.2018	Letter of revival deed executed by the 2^nd defendant
A10	01.01.2021	Letter of revival deed executed by the 1^stand 2^nd defendants
A11	01.01.2021	Letter of revival deed executed by the 2^nd defendant
A12	18.12.2023	Letter of revival deed executed by the 1^stand 2^nd defendants
A13	31.12.2020	Acknowledgement of security/liability form mortgagors executed bythe 1^stdefendant
A14	30.11.2012	Legal demand notice issued by the applicant bank defendant
A15	08.03.2010	Agreement cum deed of hypothecation for agricultural loans executed bythe 1^stdefendant
A16	08.03.2010	Request for agricultural overdraft facilities/KCC executed bythe 1^stand 2^nddefendants
A17	08.03.2010	Undertaking letters from the borrowers regarding notice of variations in the rates of interest on loans/advances executed bythe 1^stdefendant
A18	08.03.2010	Letter of attestation/declaration
A19	09.02.2010	Registered mortgage deed executed by the 1^st defendant

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OA-1568/2025

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A20	04.07.2012	Letter of revival deed executed by the 1^stand 2^nd defendants
A21	31.01.2015	Letter of revival deed executed by the 1^stand 2^nd defendants
A22	21.08.2017	Letter of revival deed executed by the 1^stand 2^nd defendants
A23	18.06.2020	Letter of revival deed executed by the 1^stand 2^nd defendants
A24	08.03.2023	Letter of revival deed executed by the 1^st defendant
A25	08.03.2023	Letter of revival deed executed by the 2^nd defendant
A26	10.03.2021	Acknowledgement of security/liability form mortgagors executed bythe 1^stdefendant
A27	-------	Statement of account in kisan OD loan in A/no. 59915355017613(old a/no. 2009000017)
A28	-------	Statement of account in KCC loan in A/no. 59915354104912(old a/no. 2009000292)

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Dattamma and Another

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Dattamma and Another

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

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