Allowed

Karnataka Gramin Bank v. Babu

DRT11 Sept 2026OA/1910/2025

Case brief

AI extract

What is this about?

This Debts Recovery Tribunal allowed an Original Application filed by Karnataka Grameena Bank for issuance of a Recovery Certificate. The bank claimed outstanding dues of approximately Rs. 35.83 lakh against three defendants who had defaulted on housing and term loans used for vehicle purchase. As the defendants appeared ex parte, the court found the bank's documentary evidence uncontroverted and the claim within limitation. The Tribunal allowed the application but modified the interest rate to 8% p.a. (simple) for recovery.

What did the court decide?

Issuance of Recovery Certificate for Rs. 35,83,782/- with 8% p.a. simple interest to be recovered jointly, severally, and personally from defendants or from the schedule property.

Karnataka Gramin Bank versus Babu — 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

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Presiding Officer

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OA. No.1910/2025

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BETWEEN:

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Karnataka Grameena Bank Yerigera Road Branch ABID Complex, Tank Bund Road, Raichur Taluk & District Karnataka State – 584133 Rep.by its Branch Manager

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… APPLICANT

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AND:

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Sri. Babu S/o. Dastagir Major, Contractor H.No.1-1-265/2/A/1 Udaya Nagar, Station Road Raichur -584101

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Smt. Kavitha W/o. Babu Major, Contractor H.No.1-1-265/2/A/1 Udaya Nagar, Station Road, Raichur – 584101

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Sri. Vindod Kumar S/o. Jamandab Major, Teacher, GMHPS Beroon Quilla, R/o. H.No.1-9-169 Azad Nagar, Raichur

...DEFENDANTS

OA. No.1910/2025

Counsel on record/appeared for:

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Applicant : Sri. G Lokesh Murthy 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 for seeking issuance of Recovery Certificate against the defendants for Rs.35,83,782/- (Rupees Thirty Five Lakh Eighty Three Thousand Seven Hundred and Eighty Two 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 availed housing loan limit of Rs.11.00 lakhs on 24.09.2013 and additional Term loan limit of Rs.2.00 lakhs on 25.04.2014.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan account

OA. No.1910/2025

as NPA.

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, service of summons on the defendants, they 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 A1 to A22 and got the same marked in evidence. 8. Heard the Ld. Counsel for the Applicant and considered the

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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

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remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and

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OA. No.1910/2025

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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

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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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were availed for vehicle purchase purpose and also that 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 8.00%

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p.a.(simple).

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In the result, OA.No.1910/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.35,83,782/- (Rupees Thirty Five Lakh Eighty Three Thousand Seven Hundred and Eighty Two only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization

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OA. No.1910/2025

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from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule property. The 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 the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding 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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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OA. No.1910/2025

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14. Communicate a copy of the order to the parties concerned

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in 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 (PR), 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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(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. Adiki Balaraju, Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit Number
1	Original Housing term loan application with co obligant letter dated 26.08.2013	A1 & A2
2	Original memorandum of pronote and take delivery letter, and housing loan agreement both dated 24.09.2013	A3 & A4
	Original EQM – Deposit of title deeds letter
3	dated 17.09.2013, letter of revival dated 13.07.2016, 19.02.2019, 21.01.2022 and 21.12.2024	A5 to A9
4	Original term loan application with co obligant letter dated 13.03.2014	A10 & A11
	Original housing loan agreement dated
5	13.003.2014, EQM deposit of title deeds letter dated 13.03.2014,letter of revival dated	A12 to A17

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OA. No.1910/2025

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	13.07.2016, 16.02.2019, 24.01.2022 and 21.12.2024
6	Online copy of CERSAI report dated 03.03.2025	A18
7	Office copy of demand notice dated 22.02.2021,legal notice dated 07.02.2025	A19 & A20
8	True extract of 2 loan account statements	A21 & A22

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Babu

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Babu

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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