Allowed

Karnataka Gramin Bank v. Siddappa Alias Siddanna

DRT11 Sept 2026OA/1834/2025

Case brief

AI extract

What is this about?

In an original application under Section 19 of the RDB Act, the Karnataka Grameena Bank sought a recovery certificate for Rs. 28.92 lakh against four defendants who defaulted on agricultural and KCC loans. The defendants appeared via ex-parte due to summons failures. Finding the claim admissible and within limitation, the Tribunal allowed the application but reduced the interest rate to 6% simple interest. A recovery certificate was issued covering the principal and accrued interest, allowing recovery from joint assets.

What did the court decide?

Recovery certificate issued for Rs. 28,92,707.47 with 6% simple interest from the date of filing the application till realization, enforceable against schedule properties and jointly, severally, and personally against the defendants.

Karnataka Gramin Bank versus Siddappa Alias Siddanna — 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 11^th Day of September, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1834/2025

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BETWEEN:

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Karnataka Grameena Bank Wadagera Branch Wadagera Taluk Yadgira Taluk Yadgira District-585355. Represented by its Branch Manager And Principal Officer, Pradeep Kumar.

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…APPLICANT

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AND:

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Sri. Siddappa Alias Siddanna S/o Sri. Iredyappa Aged about 71 years

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Sri. Sadashivappa Alias Sadashiva Reddy S/o Sri. Siddappa

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Aged about 45 years.

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Sri. Basavaraj S/o Sri. Siddappa Aged about 41 years

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Smt. Suma D/o Sri. Sadashivappa Alias Sadashiva Reddy Aged about 24 years All are Residing at: Kandalli Village Wadagera Taluk, Yadgir District-585355. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Srinivasa Murthy HC Defendants : Exparte

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2 1834/2025

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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. 28,92,707.47/(Rupees Twenty Eight Lakh Ninety Two Thousand Seven Hundred Seven and Paise Forty Seven 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 the following credit facilities from the applicant bank:-

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I. KCC limit of a sum of Rs. 21,000/- (Rupees Twenty One Only) on 26.06.2007.

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II. Minor irrigation Loan of sum of Rs. 3,50,000/- (Rupees Three Lakh Fifty Thousand Only) on 05.08.2009.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Loan Agreement, Letter of Revival, 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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3 1834/2025

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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 09.09.2026.

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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-25 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 Mortgage and hypothecated as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim

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of the amount due are also proved by the above documents. The claim

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4 1834/2025

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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 facilities was 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.1834/2025, stands allowed,

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

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28,92,707.47/- (Rupees Twenty Eight Lakh Ninety Two Thousand Seven Hundred Seven and Paise Forty Seven Only) consisting of:

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a. Rs.1,09,039.13 /- with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant No. 1 under KKC Loan;

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b. Rs.27,83,668.34/- with further interest of 6.00% p.a.(simple) from the

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date of filing OA till the realization from the defendants jointly, severally

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and 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. Schedule Properties to the OA be the schedule to the recovery certificate.

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5 1834/2025

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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 the 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.

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iv) The Recovery Certificate to be drawn in terms of this order and 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) Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 11^th Day of September, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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6 1834/2025

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Veeranna A, Branch Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Sl	Description of Documents	Annexure
No.		No.
1)	Copy of the Loan Application for Agricultural Loan /Renewal cum sanction dated 26.06.2007	A01
2)	Copy of the Loan Agreement dated 26.06.2007 along with Appendix 3B	A02
3)	Copy of the Letter of Revival dated 24.06.2010	A03
4)	Copy of the Letter of Revival dated 20.06.2013	A04
5)	Copy of the Letter of Revival dated 08.03.2016	A05
6)	Copy of the Letter of Revival dated 15.05.2018	A06
7)	Copy of the Letter of Revival dated 23.10.2020	A07
8)	Copy of the Letter of Revival dated 29.04.2023	A08
9)	Copy of the Agricultural Loan Application Form dated nil	A09
10)	Copy of the Appraisal Memorandum -cum -Sanction Letter dated 05.08.2009	A10
11)	Copy of the Loan Agreement dated 21.08.2009 along with Appendix 3A dated 31.08.2009	A11
12)	Copy of the Mortgage Deed dated 21.08.2009	A12
13)	Copy of the Letter of Revival dated 08.06.2012 executed by the Defendants No.1&2	A13

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7 1834/2025

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14)	Copy of the Letter of Revival dated 08.06,2012 executed by the Defendant no.3	A14
15)	Copy of the Letter of Revival dated 11.08.2014 executed by the Defendants No.1&2	A15
16)	Copy of the Letter of Revival dated 11.08.2014 executed by the Defendant No.3	A16
17)	Copy of the Letter of Revival dated 08.08.2017	A17
18)	Copy of the Letter of Revival dated 07.05.2020	A18
19)	Copy of the Letter of Revival dated 02.04.2023	A19
20)	Copy of the Acknowledgement of Security/Liability from Mortgagers dated 21.09.2019 in respect of MIL Account	A20
21)	Copy of the Legal Notice dated 12.08.2024 in respect of KKC Account to the Defendant No.1	A21
22)	Copy of the Legal Notice dated 12.08.2024 in respect of MIL Account to the Defendants	A22
23)	Copy of the MR No. H27 dated 14.06.2019	A23
24)	Copy of the Statement of Account certified under Bankers’ Book of Evidence Act in respect of KKC account No. 01015354068015	A24
25)	Copy of the Statement of Account certified under Bankers’ Book of Evidence Act in respect of MIL account No. 01015330022709	A25

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

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8 1834/2025

Karnataka Gramin Bank v. Siddappa Alias Siddanna

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Siddappa Alias Siddanna

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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