Allowed

Karnataka Gramin Bank v. Smt Sushilabai

DRT24 Feb 2026OA/1789/2023

Case brief

AI extract

What is this about?

In this debt recovery proceeding, the Tribunal allowed the applicant's claim for a recovery certificate against the defendants, who are legal heirs of a deceased borrower. The court granted relief for the outstanding principal and interest at a reduced rate of 6.00% simple interest.

What did the court decide?

The applicant is allowed to recover an aggregate sum of ₹20,44,341.74 plus further interest @6.00% p.a. from the defendants to the extent of their inherited estate, allowing recovery by proceeding aga

Karnataka Gramin Bank versus Smt Sushilabai — 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 February, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1789/2023

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BETWEEN:

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Karnataka Grameena Bank Narona Branch, Aland Taluk, Kalaburgi District

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Represented by its Branch Manager

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Sri. Arun Kumar …APPLICANT

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AND:

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Smt. Sushilabai

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W/o. late Basavntarao @ Basavanthraya Aged about 70 years

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Sri. Mallinath @ Mallana Gouda Patil S/o. late Basavntarao @ Basavanthraya Aged about 50 years

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Sri. Hanumanthraya

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S/o. late Basavntarao @ Basavanthraya Aged about 48 years

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Sri. Shivaraya

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S/o. late Basavntarao @ Basavanthraya Aged about 48 years

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OA. No. 1789/2023

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All are r/at: Ganjababalad, Narona, Aland Taluk, Kalaburgi District – 585 311 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : T S Mahabaleswara Defendants : Ex parte

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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. 20,44,341.74/- (Rupees Twenty Lakhs Forty Four Thousand Three Hundred and Forty One and Paisa Seventy Four 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 are the legal heirs of the deceased borrower. The Late borrower Basavntarao @ Basavanthraya availed the following credit facilities:

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Kissan Gold card loan of Rs. 3,88,000/- (Rupees Three Lakhs Eighty Eight Thousand Only) for the purpose of land development and construction.

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Crop loan of Rs. 1,00,000/- (Rupees One Lakhs Only) for the purpose of growing the crops i.e Tur and sugar cane.

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OA. No. 1789/2023

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The deceased borrower executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrower Basavntarao @ Basavanthraya had also executed Mortgage Deed dated 23.05.2006.

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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 defaults 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 as against the defendants.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 25.04.2024.

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A21 and got the same marked in evidence. 8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

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The following issues arise for consideration in this matter:

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OA. No. 1789/2023

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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 orders 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

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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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are availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal

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OA. No. 1789/2023

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is the view that the OA can be allowed with a reduced interest of

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6.00% (simple).

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In the result, OA.No.1789/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs. 20,44,341.74/- (Rupees Twenty Lakhs Forty Four Thousand

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Three Hundred and Forty One and Paisa Seventy Four Only) with further interest @6.00 % p.a.(simple) from the date of filing OA

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till the realization, from the defendants, to the extent of their inheritance of any estate form the deceased borrower Basavntarao @ Basavanthraya, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The

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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 liability, the defendants to the extent of their inherited form the deceased late Basavntarao @ Basavanthraya is liable to the proceeds against for the balance amount.

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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

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OA. No. 1789/2023

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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 in

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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 (HS), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 24^th Day of February, 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: Sri. Arun Kumar, S/o. Sri. Shivayogi, Branch Manager, of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	09.04.2009	Loan agreement executed by late Basavntarao @Basavanthraya
A2	06.04.2009	Mortgage Deed Executed by late Basavntarao @Basavanthraya
A3	25.03.2012	Revival letter executed by late Basavntarao @ Basavanthraya

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OA. No. 1789/2023

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A4	28.02.2015	Revival letter executed by late Basavntarao @ Basavanthraya
A5	07.02.2018	Revival letter executed by late Basavntarao @ Basavanthraya
A6	30.01.2021	Revival letter executed by late Basavntarao @ Basavanthraya
A7	11.07.2023	Legal heirs of deceased borrower revival letter executed by2^nddefendant
	15.06.2019	Acknowledgement of security/liability on
A8		executed by late Basavntarao @ Basavanthraya
A9		Statement of accounts extract
A10	23.05.2009	Loan application
A11	23.05.2009	Loan agreement executed by late Basavntarao @Basavanthraya
A12	23.05.2006	Mortgage Deed Executed by late Basavntarao @Basavanthraya
A13	03.04.2012	Revival letter executed by late Basavntarao @ Basavanthraya
A14	11.02.2015	Revival letter executed by late Basavntarao @ Basavanthraya
A15	23.03.2018	Revival letter executed by late Basavntarao @ Basavanthraya
A16	17.03.2021	Revival letter executed by late Basavntarao @ Basavanthraya
A17	22.02.2022	Copy of death certificate of Basavntarao @ Basavanthraya
A18		Legal heirs of deceased borrower revival letter executed by2^nddefendant
	16.12.2017	Acknowledgement of security/liability on
A19		executed by late Basavntarao @ Basavanthraya
A20	08.12.2022	Office copyof legal notice
A21	--------	Statement of account extract

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Karnataka Gramin Bank v. Smt Sushilabai

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Smt Sushilabai

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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