Allowed

Karnataka Gramin Bank v. Sri Budival Kariyappa

DRT24 Jul 2026OA/1793/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the OA for recovery of ₹46,06,718 along with interest at 6% p.a., finding the applicant's claim against defaulting borrowers and legal heirs well-proven and unrebutted as respondents appeared ex parte.

What did the court decide?

Issuance of Recovery Certificate for ₹46,06,718 with interest at 6% p.a. from filing date till realization, recoverable jointly, severally, and personally from all defendants.

Karnataka Gramin Bank versus Sri Budival Kariyappa — 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 Presiding Officer

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OA.No.1793/2023

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BETWEEN:

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Karnataka Grameena Bank Dhadesugur Branch, Dhadesugur-584167, Sindhanur Taluk, Raichur District. Represented by its Branch Manager Ramanjini.B.

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…APPLICANT

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AND:

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Budival Kariyappa S/o Venkpbannav Kengal, Aged about 70 years, R/o at Kengal Village, Sindhanur Taluk, Raichur District-584167.

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Smt. Shivamma, W/o late Angadi Shekarappa, Major, R/at Kengal Village, Sindhanur Taluk, Raichur District.

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Sri. Sreedhar, S/o Late Angadi Shekarappa, Major, R/at Kengal Village, Sindhanur Taluk, Raichur District.

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2 1793/2023

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Sri. Hussain Sab S/o Bhakshi Sab, Aged about 52 years, Dhadesugur-584167, Sindhanur Taluk, Raichur District. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : B. Prasanna Kumar 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 seeking issuance of Recovery Certificate against the defendants for Rs. 46,06,718/- (Rupees Forty Six Lakh Six Thousand Seven hundred Eighteen 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 defendant No.1 as Borrower and Late Angadi Shekarappa as a co-obligant availed the Agricultural Term Loan credit facility of Rs. 5,00,000/- from the applicant bank on 24.06.2006. Defendant No.2 & 3 are the legal heirs of the deceased borrower of Late Angadi Shekarappa.

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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 Memorandum of Agreement, Memorandum of Simple Mortgage, Sale Deed.

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3 1793/2023

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It is further contended that, despite availing the credit facility, 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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 21.08.2025.

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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-19 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

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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

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4 1793/2023

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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 Mortgage as claimed by the applicant bank 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 find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility was availed for purchase 45 HP Balwan 450 Tractor and Trailor and equipment’s 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.1793/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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46,06,718/- (Rupees Forty Six lakh Six Thousand Seven Hundred Eighteen Only) with further interest @ 6.00 % p.a.(simple) from the date

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5 1793/2023

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of filing OA till the realization, from the defendant No. 1 to 3 jointly, severally and personally and their other assets and from the defendant No.2 & 3 and to the extent of their inheritance of any estate from the deceased borrower Angadi Shekarappa after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the 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 defendant No. 1 to 3 jointly, severally and personally and their other assets and the assets of the defendant No.2 & 3 to extent of her inheritance of any estate from the deceased borrower Angadi Shekarappa are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order. iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution. v) Interim application pending, if any, stands disposed of in terms 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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6 1793/2023

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the

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Open Court, this the 24^th Day of July, 2026].

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Sd/-

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(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: Valmiki Prakash, Branch Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	16.06.2006	A Copy of the loan application
A2	24.06.2006	A Copy of the Appraisal Report and Sanction memorandum
A3	29.06.2006	A Copy of the Memorandum of Agreement
A4	29.06.2006	A Copy of the Authorization and Undertaking letter
A5	29.06.2006	A Copy of the registered Memorandum of Simple mortgage Deed
A6	19.06.2018	A Copy of the Acknowledgement of liability
A7	10.02.2009 26.04.2011	The Copies of the Revival letter
A8	23.12.2013 19.02.2016	The Copies of the Revival letter
A9	19.01.2019 20.12.2021	The Copies of the Revival letter
A10	19.02.2016 19.01.2019 20.12.2021	The Copies of the Revival letter of legal heirs revival letter

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7 1793/2023

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Sd/-

Karnataka Gramin Bank v. Sri Budival Kariyappa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri Budival Kariyappa

Case brief

What is this about?

What did the court decide?

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