Allowed

Karnataka Bank Limited v. Venkateshappa S N and Others

DRT17 Jul 2026OA/1761/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application u/s 19 of the RDB Act filed by Karnataka Bank Ltd. for issuance of a Recovery Certificate. With the defendants in default and absent (ex-parte), the Tribunal validated the loan, security interests, and default but reduced the interest rate to 6% p.a. due to agricultural purpose.

What did the court decide?

Issuance of a Recovery Certificate for Rs.31,25,713.04 plus further interest at 6.00% p.a. (simple) to be recovered from the defendants jointly, severally and personally.

Karnataka Bank Limited versus Venkateshappa S N… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 17^th Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1761/2024

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BETWEEN:

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Karnataka Bank Ltd., Branch at No.815, Opp. Sarvajna Park, Bangarpet Road, Fort, Kolar-563101 Rep. by Senior Branch Manager

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… APPLICANT

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AND:

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Sri. Venkateshappa S N S/o. Narayanappa Aged 45 years Residing at Kunte Village, Thotly Post, Kolar

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Smt. Kanthamma D/o. Narayanappa Aged 53 years Residing at Kunte Village,

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Thotly Post, Kolar

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Smt. Kamalamma D/o. Narayanappa Aged 52 years Residing at Kunte Village, Thotly Post, Kolar

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Smt. Sarojamma D/o. Narayanappa Ageda 48 years Residing at Kunte Village, Thotly Post, Kolar

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OA. No.1761/2024

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Smt. Susheelamma D/o. Narayanappa Aged 56 years Residing at Kunte Village, Thotly Post, Kolar

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Sri. Naraynaswamy S/o. Narayanappa Aged 56 years Residing at Kunte Village, Thotly Post, Kolar

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Sri. Venkateshgowda T M S/o. Chikkamuni Venkatappa Aged 57 years Residing at Thurandahalli village, Janagatta post, Kolar Taluk

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Sri. Ravi T S/o. Narayan Gowda M Aged 48 years Residing at Thurandahalli village, Janagatta post, Kolar Taluk

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. C S Satish Defendants : 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.31,25,713.04/- (Rupees Thirty One Lakh Twenty Five Thousand

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OA. No.1761/2024

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Seven Hundred Thirteen and Four 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 deceased borrower Narayanappa along with defendant Nos.1, 7 and 8 availed Rs.8,00,000/- on 23.03.2012. The defendant No.1 to 6 are legal heirs of deceased borrower Narayanappa.

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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.

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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 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 24.03.2026.

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OA. No.1761/2024

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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

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OA. No.1761/2024

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within the limitation.

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Hence in view of the above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is

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liable to be allowed.

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Taking into consideration the facts that the credit facility

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was availed for agricultural purpose 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.1761/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.31,25,713.04/- (Rupees Thirty One Lakh Twenty Five Thousand Seven Hundred Thirteen and Four Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants No.1,7 and 8 and defendant Nos.1 to 6 to the extent of inheritance of any estate from the deceased borrower, 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

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Nos.1,7 and 8 jointly, severally and personally and also by

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OA. No.1761/2024

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proceeding against the schedule. The schedule to the OA be the

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schedule to the Recovery Certificate.

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ii) In the event of failure of the defendants to pay the

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aforesaid amount, the bank is at liberty to proceed against the defendants No.1, 7 and 8 jointly, severally, personally and their

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other assets are liable for all such amounts due under the loan account.

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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

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order and transferred to Recovery for execution.

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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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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

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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 17^th Day of July 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

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OA. No.1761/2024

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Visankarra Ramanna, Senior 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	Sanction letter dated 26.03.2012	A1
2	Term loan agreement executed by the defendants dated 27.03.2012	A2
3	Declaration dated 27.03.2012 executed by Narayanappa	A3
4	Consent letter dated 27.03.2012 executed by Narayanappa	A4
5	Consent letter dated 27.03.2012 executed by defendant No.1 7 & 8	A5
	Undertaking letter dated 27.03.2012 executed by
6	Narayanappa to hypothecate SIP sets and pipelines	A6
7	Hypothecation agreement dated 27.03.2012 executed by Narayanappa	A7
8	Acknowledgment of debt dated 01.01.2015 executed by defendants	A8
9	Death certificate of Narayanappa	A9
10	Death certificate of Venkatamma	A10
11	Registered mortgage dated 03.02.2012 executed by Narayanappa	A11
12	Recall notice dated 19.07.2013	A12
13	Recall notice dated 23.09.2013	A13
14	Legal notice dated 15.04.2014	A14
15	Statement of account	A15

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Sd/-

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PRESIDING OFFICER

Karnataka Bank Limited v. Venkateshappa S N and Others

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Venkateshappa S N and Others

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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