Allowed

Karnataka Gramin Bank v. Byregowda

DRT18 Mar 2026OA/178/2025

Case brief

AI extract

What is this about?

The tribunal allowed the original application filed by Karnataka Gramin Bank to recover a debt of Rs. 23.52 lakhs from two agricultural borrowers who defaulted on loans and failed to repay. Recovery certificate was issued with reduced interest.

What did the court decide?

Recovery certificate to be drawn for Rs. 23,52,507.36 with 6% simple interest to be recovered from defendants jointly, severally and personally after crediting amounts recovered.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 18^th Day of March, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.178/2025

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BETWEEN:

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Karnataka Gramin Bank, A branch office at Jakkasandra, Bangalore- Kanakapura Road, Kanakapura Taluk, Ramanagara District- 562 112, Represented by Smt Rekha U, Branch Manager.

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…APPLICANT

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AND:

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Sri Byregowda, S/o Sri Linge Gowda, Aged about 70 years.

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Sri Lingaraju, S/o Sri Byregowda, Aged about 43 years.

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All defendants are residing at, Malligemettalu Village, Maralvadi Hobli, Kanakapura Taluk, Ramanagar District, Karnataka – 562159.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. J N Legal Defendants : Exparte

OA 178/2025

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 23,52,507.36 (Rupees Twenty Three lakh Fifty Two Thousand Five Hundred Seven and Paise Thirty Six 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 availed ATL landbased loan of Rs. 4,50,000/- (Rupees Five Lakh Fifty Thousand Only) and Crop loan of Rs. 2,74,000/- (Rupees Two lakh Seventy Four Thousand Only0.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with mortgage agreement and simple mortgage deed.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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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Despite, summons the defendants, they failed to appear, resulting the defendants being set exparte on 18.11.2025.

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OA 178/2025

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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-14 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 facilities as stated in the OA, creation of the security interest and the defaults committed in the accounts. 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 findings arrived herein above, the Tribunal

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OA 178/2025

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find both these issues in favour of applicant and hence, this Tribunal is of

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are availed for Agricultural purpose and also that the 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% (simple).

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In the result, OA.No.178/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 23,52,507.36 (Rupees Twenty Three lakh Fifty Two Thousand Five Hundred Seven and Paise Thirty Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & 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 proceeding against 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 found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for respective amounts due under the respective loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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OA 178/2025

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

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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 in terms

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of this final order.

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Communicate a copy of the order to the parties concerned in terms

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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 (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 18^th Day of March, 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: Angadi Basaveswar, Assistant Manager, of Applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	List of Documents
A1	Copy of the application for agricultural development loan
	dated 18.11.2024
A2	Copy of loan sanction letter dated 04.12.2014
A3	Copy of the mortgage agreement 04.12.2014

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OA 178/2025

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A4	8771/14.15
A5	Copy of the agreement to repay time barred debts dated 31.05.2019
A6	Copy of the letter of revival dated 22.05.2022
A7	Copy of the application from cum appraisal report for KCC dated 22.04.2016
A8	Copy of the loan sanction conveying letter dated 22.04.2016
A9	Copy of mortgage agreement of KCC loan dated 22.04.2016
A10	Copy of the simple mortgage deed for KCC dated 22.04.2016
A11	Copy of the agreement to repay time barred debts dated 31.05.2019
A12	Copy of the legal notice dated 17.09.2024
A13	Copy of the statement of account certified under banker’s book of evidence act showing the outstanding liability under agriculture development loan a/c No. 421933260000114
A14	Copy of the statement of account certified under bankers book of evidence act showing the outstanding liability under KCC-ST CONVERTED loan A/c No. 42193354018122

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Byregowda

Case brief

What is this about?

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Karnataka Gramin Bank v. Byregowda

Case brief

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What did the court decide?

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