Allowed

Karnataka Gramin Bank v. Rathnamma

DRT11 Sept 2026OA/1882/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application (OA) filed by Karnataka Grameena Bank seeking a recovery certificate for agricultural loans (KCC and ATL) defaulted by three respondents. Appearing ex parte, the defendants failed to rebut the applicant's evidences of loan availability, security creation, and default. The Tribunal found the claim admissible and within limitation but reduced the interest rate to 6% per annum (simple) as the loans were for agricultural purposes, despite the amount being within the monetary limit of the Tribunal.

What did the court decide?

Recovery Certificate issued for Rs. 29,75,243.06 with interest at 6% p.a. (simple) from filing date till realization against schedule property and personal assets of the defendants jointly, severally and personally. Cost of proceedings awarded to applicant.

Karnataka Gramin Bank versus Rathnamma — Banking and Recovery | 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.1882/2025

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BETWEEN:

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Karnataka Grameena Bank Saragur Branch Sri. Rama Badavane, Hunsur, Beguru Road, Saraguru Mysore District-571 121. Represented by its Branch Manager and Principal Officer in charge, Amith R.

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…APPLICANT

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AND:

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Smt. Rathnamma W/o late Chamaraju Aged about 59 years

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Sri. Nagendra S/o Late Chamaraju Aged about 45 years.

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Sri. Maruthi S/o Late Chamaraju Aged about 43 years.

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All are Residing at: Chamegoudanahundi KotheGala Post, Saraguru Taluk, Mysore District-571 121.

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...DEFENDANTS

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2 1882/2025

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Counsel on record/appeared for:

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Applicant : Srinivasa Murthy HC 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. 29,75,243.06/(Rupees Twenty Nine Lakh Seventy Five Thousand Two Hundred Forty Three and Paise 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 the following credit facilities from the applicant bank:-

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I. KCC Loan of a sum of Rs. 2,43,000/- (Rupees Two Lakh Forty Three Thousand Only) on 15.07.2011.

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II. ATL Loan of sum of Rs. 3,00,000/- (Rupees Three lakh Only) on 20.06.2011.

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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 loan Agreement, Memorandum of Agreement, Mortgage deed, Letter of Commitment.

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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

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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 07.04.2026.

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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-21 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 unrebutted as defendants remained exparte. The evidence tendered by

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the applicant remains uncontroverted and undisputed. The evidences put

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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 Hypothecation 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 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.1882/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 29,75,243.06/- (Rupees Twenty Nine Lakh Seventy five Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally 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

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against schedule property. Schedule Properties to the OA be the schedule

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to the recovery certificate.

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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

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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)

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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 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 1882/2025

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Amith R, Branch Manager and Authorized Officer of the applicant

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Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Annexur e No.
1)	Copy of the Application Cum Appraisal Report for Agricultural loan (KCC) dated 06.07.2011	A01
2)	Copy of the Sanction conveying Letter- Kissan Credit Card dated 15.07.2011.	A02
3)	Copy of Loan Agreement dated 15.07.2011 executed by Defendant No.1.	A03
4)	Copy of the Letter of Commitment dated 13.07.2014 executed by Defendant No.1.	A04
5)	Copy of the acknowledgment of Liability for KCC dated 23.03.2017 executed by Defendant No.1.	A05
6)	Copy of the acknowledgment of Liability for KCC dated 13.11.2018 executed by Defendant No.1.	A06
7)	Copy of the Letter of Revival for KCC dated 11.11.2021 executed by Defendant No.1.	A07
8)	Copy of the Letter of Revival for KCC dated 26.03.2024 executed by Defendant No.1.	A08
9)	Copy of the Application Form cum Appraisal Report for Agricultural Term Loans (ATL) dated 06.07.2011	A09

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10)	Copy of the Loan sanction conveying Letter dated 22.07.2011.	A10
11)	Copy of the Memorandum of Agreement (ATL) dated 22.07.2011 executed by Defendant No.1.	A11
12)	Copy of the Mortgage deed dated 28.06.2011 executed by Defendant No.1 to 3.	A12
13)	Copy of the Letter of Acknowledgement of security/ Liability from mortgagors dated 11.11.2021 executed by Defendant No.1.	A13
14)	Copy of the Letter of Commitment dated 20.07.2014 executed by Defendant No.1.	A14
15)	Copy of the acknowledgment of Liability for ATL dated 23.04.2017 executed by Defendant No.1.	A15
16)	Copy of the acknowledgment of Liability for ATL dated 13.11.2018 executed by Defendant No.1.	A16
17)	Copy of the Letter of Revival for ATL dated 11.11.2021 executed by Defendant No.1.	A17
18)	Copy of the acknowledgment of Liability for ATL dated 26.03.2024 executed by Defendant No.1.	A18
19)	Copy of the Legal Notice dated 18.02.2025.	A19
20)	Copy of the Statement of Account certified under Bankers’ Book of Evidence Act in respect of KCC Loan account No. 12036130000205.	A20

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1. Copy of the Statement of Account certified under A21 Bankers’ Book of Evidence Act in respect of ATL Loan account No. 42036326006011.

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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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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Rathnamma

Case brief

What is this about?

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Karnataka Gramin Bank v. Rathnamma

Case brief

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What did the court decide?

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