Allowed

Karnataka Gramin Bank v. Mahantappa

DRT28 Jan 2026OA/1945/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application for a recovery certificate of Rs. 21.47 lakhs against the deceased borrower's heirs and a guarantor despite their ex-parte absence. Recovery is subject to a reduced simple interest rate of 6% per annum.

What did the court decide?

Issuance of Recovery Certificate for Rs. 21,47,446.3 plus 6% simple interest from date of filing to be recovered from the guarantor personally and heirs to the extent of their estate.

Karnataka Gramin Bank versus Mahantappa — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1945/2025

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BETWEEN:

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Karnataka Grameena Bank, Banderwad Branch, Banderwad, Afzalpur Taluk, Kalaburgi District- 585265, Represented by its Branch manager, Mr. Akash A Heroorkar, S/o Arvind Heroorkar, Aged about 36 years.

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…APPLICANT

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AND:

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Mr. Mahantappa, S/o Ganagavva Mang, Aged major,

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Mrs. Nagamma, W/o Yallappa Waddar, Aged about 50 years.

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Mr. Shivappa, S/o Yallappa Waddar, Aged about 35 years, All are R/at Kirasavalgi, Afzalpur Taluk, Kalaburgi District- 585265. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Prakasha Hedge K Defendants : EXPARTE

OA 1945/2025

FINAL ORDER

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. 21,47,446.3 (Rupees Twenty One Lakh Forty Seven Thousand Four Hundred Forty Six and Paise Three 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 borrower Yellappa is deceased and his legal heirs are brought on record as defendants Nos. 2 & 3. The deceased borrower has availed the following loans from the applicant bank:-

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Rs. 5,55,000/- (Rupees Five lakh Fifty Five Thousand only) under farm mechanization- defendant No.1 stood as guarantor.

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Rs. 1,00,000/- (Rupees One Lakh Only).

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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 guarantee letter and 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

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OA 1945/2025

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by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite summons, on the defendants they failed to appear, resulting the defendants being set Exparte on 19.09.2025.

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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-26 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 the security interest and the defaults committed in the accounts. The liability of the

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OA 1945/2025

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defendants and the claim of the amount due are also proved by the above

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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

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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 are

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availed for Agriculture 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.1945/2025, stands allowed,

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

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21,47,446.3 (Rupees Twenty One Lakh Forty Seven Thousand Four Hundred Forty Six and Paise Three Only) with further interest @6.00 % p.a.(simple) as follows:-

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a) 1^st loan- Rs. 14,30,433.38/- (Rupees Fourteen lakh Thirty Thousand Four Hundred Thirty Three and paise Thirty Eight Only) from the date of filing OA till the realization, from the defendant No.1 personally, after

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giving credit to all the amount recovered during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule

property.

OA 1945/2025

b) 2^nd Loan- Rs. 7,17,012.92/- (Rupees Seven lakh Seventeen Thousand

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Twelve and paise Ninety Two Only) from the date of filing OA till the realization, after giving credit to all the amount recovered during the pendency of the OA and allowed the same to be recovered by proceeding

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against the schedule property.

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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

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amount due and payable to the applicant bank, the defendant No. 1 personally and his assets are liable for amounts due under the 1^st loan account.

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iii) The defendants Nos. 2 & 3 being the LR’s of the deceased borrower Yellappa are liable only to the extent of the estate inherited by them from the deceased.

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iv) 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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v) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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vi) 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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OA 1945/2025

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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 (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of January, 2026].

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Sd/- (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: Sachin Kumar, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Farm mechanization interview cum appraisal from for tractor power tiller dated 31.01.2006
A2	Sanction letter dated 14.02.2006
A3	Loan agreement dated 16.02.2006
A4	Guarantee letter dated 16.02.2006
A5	Revival Letter-1 dated 15.01.2009
A6	Revival Letter-1 dated 15.01.2009
A7	Revival Letter-1 dated 10.01.2012
A8	Revival Letter-1 dated 10.01.2012
A9	Revival Letter-1 dated 02.01.2015
A10	Revival Letter-1 dated 02.01.2015
A11	Letter revival: legal heirs of deceased borrowers/ co-obligant dated 30.12.2017
A12	Acknowledgement of security/ liability from mortgagors dated 19.01.2018
A13	Letter revival dated 04.08.2020
A14	Letter revival’ Legal heirs of deceased borrower/ co-obligants dated 04.08.2020
A15	Letter revival dated 01.08.2023
A16	Letter revival’ Legal heirs of deceased borrower/ co-obligants dated 01.08.2023
A17	Loan application dated 15.09.2008

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OA 1945/2025

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A18	Loan agreement dated 15.09.2008
A19	Revival letter- 1 dated 02.09.011`
A20	Revival letter-1 dated 10.08.2014
A21	Letter revival: Legal heirs of deceased borrowers/ co- obligants dated 04.08.2017
A22	Acknowledgement of security/liability dated 3.11.2018
A23	Letter revival: Legal heirs of deceased borrowers/ co- obligants dated 2.06.2020
A24	Letter revival: legal heirs of deceased borrowers/ co- obligants dated 02.05.2023
A25	Mortgage deed dated 16.02.2006
A26	Mortgage dee dated 15.09.2008

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Mahantappa

Case brief

What is this about?

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Karnataka Gramin Bank v. Mahantappa

Case brief

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