Allowed

Karnataka Gramin Bank v. Doddegowda

DRT27 Aug 2026OA/2037/2025

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed an application for a recovery certificate against defendants who were legal heirs of deceased borrowers defaulting on agricultural loans. The court awarded the principal sum with reduced simple interest.

What did the court decide?

Recovery Certificate issued directing recovery of Rs. 22,74,646.50 plus 6% simple interest from legal heirs, with proceedings against schedule properties and assets.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of August, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2037/2025

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BETWEEN:

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Karnataka Grameena Bank Jodigubbi Branch Jodigubbi Village, Holenarasipura Talu, Hassan District-573102, Represented by its Branch Manager. …APPLICANT

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AND:

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Sri. Doddegowda Aged about 86 years S/o Sri. Gangegowda Guddenahalli Village, Niduvani Post, Holenarasipura Taluk, Hassan Dist. 573 210.

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Sri. Kumara Aged about 53 years S/o Sri. Doddegowda Guddenahalli Village, Niduvani Post, Holenarasipura Taluk, Hassan Dist. 573 210.

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Sri. Ninegowda G.D. Aged about 61 years S/o Sri. Doddegowda Guddenahalli Village, Niduvani Post, Holenarasipura Taluk, Hassan Dist. 573 210.

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Smt. Channamma Aged about 81 years W/o Sri. Doddegowda Guddenahalli Village, Niduvani Post, Holenarasipura Taluk, Hassan Dist. 573 210.

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Smt. Yogamani Aged about 50 years D/o Sri. Doddegowda Guddenahalli Village, Niduvani Post, Holenarasipura Taluk, Hassan Dist. 573 210.

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Sri. Thimmegowda Aged about 50 years S/o Sri. Sri. Thimmegowda, Elegowdanahally Village, Hallimysore Post, Holenarasipura Taluk, Hassan Dist. 573 210.

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Smt. Ahalya K.T. D/o Sri. Thimmegowda Elegowdanahally Village, Hallimysore Post, Holenarasipura Taluk, Hassan Dist. 573 210.

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Smt. Archana K.T. W/o Sri. Sachin D/o Thimmegowda Guddenahalli Village, Niduvani Post, Holenarasipura Taluk, Hassan Dist. 573 210.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Avinash B Rahul 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. 22,74,646.50/(Rupees Twenty Two Lakh Seventy Four Six hundred Forty Six and Paise Fifty 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 No. 2 to 5 are the LRs of the deceased Defendant No.1 and the Defendants No.7 and 8 are the LRs of the Deceased defendant No.6. The defendants availed the following credit facilities from the applicant bank:-

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I. GCC General Credit New Loan of a sum of Rs. 49,000/- (Rupees Forty Nine Thousand Only).

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II. Agricultural Term Loan of sum of Rs. 2,00,000/- (Rupees Two Lakh Only).

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III. Kissan Card New Loan of sum of Rs. 4,40,000/- (Rupees Four Lakh Forty Thousand 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 Agreement for advances Form-8, Letter Guarantee Agreement, on demand Promissory Note, Hypothecation agreement.

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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 08.04.2026.

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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-31 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.2037/2025, stands allowed,

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

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Rs.22,74,646.50/- (Rupees Twenty Two Lakh Seventy Four Thousand Six Hundred Forty Six and Paise Fifty only) consisting of:

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a. Rs.1,67,474 /- with further interest of 6.00% p.a.(simple) from the

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date of filing OA till the realization in respect of GCC Loan from the defendant No.2 and the Defendants No. 2 to 5 to the extent of their

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inheritance of any estate from the deceased defendant No.1 ;

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b. Rs.8,32,590/- with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization in respect of Agri Term Loan from the defendant No.2 and the Defendants No. 2 to 5 to the extent of their inheritance of any estate from the deceased defendant No.1 ;

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c. Rs. 12,74,582.50/- with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization in respect of KCC- Loan from the defendant No.2 and the Defendants No. 2 to 5 to the extent of their inheritance of any estate from the deceased defendant No.1, 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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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

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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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14. 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 27^th Day of August, 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: Chetan S, 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	12.08.2013	CC Loan application for the purpose of doing Grocery business for a sum of Rs. 49,000/- executed by the 1^stdefendant
A2	12.08.2013	Letter of Sanction for a sum of Rs. 49,000/- from the applicant Bank
A3	12.08.2013	Agreement for Advances Form-12 Agreement to Secure an Advance against Hypothecation of Goods for a sum, of Rs. 49,000/- executed by the 1^st& 2^nd defendant

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A4	12.08.2013	Agreement for Advances Form-8 for a sum, of Rs. 49,000/- executed by the 1^st& 2^nddefendant in favour of the Bank
A5	--	Letter of Guarantee agreement executed by the 2^nd defendant in favour of the Bank
A6	12.08.2013	On Demand Promissory Note and take delivery letter for a sum, of Rs. 49,000/- executed by the 1^st& 2^nddefendant
A7	8.08.2016	Acknowledgement of Liability for amount of Rs. 50,576/- up to 30.09.2014
A8	30.09.2014	Acknowledgement of Debt and Security for amount of Rs. 50,576/- up to 30.09.2014
A9	12.05.2022	Letter of Revival for a limit of Rs. 49,000/-
A10	12.01.2025	Letter of revival Legal heirs of deceased Borrower/ Co Obligants for a limit of Rs. 49,000/-
A11	28.03.2014	Loan application for the purpose of Pipeline and Sprinklers for a sum, of Rs. 3,00,570/- executed by the 1^st& 3^rddefendant
A12	28.03.2014	Letter of Sanction for a sum of Rs. 2,00,000/- from the applicant Bank
A13	28.03.2014	Hypothecation agreement for a sum of Rs. 2,00,000/- from the applicant Bank
A14	26.03.2014	Declaration under Form III executed by the 1^st defendant along with his children
A15	31.03.2016	Acknowledgement of liability for amount of Rs. 2,61,277/- up to 31.03.2016
A16	31.03.2016	Acknowledgement of Debt and Security for amount of Rs. 3,83,772/- up to 31.03.2019
A17	03.04.2022	Letter of Revival for a limit of Rs. 2,00,000/-
A18	11.09.2023	Letter of Revival for a limit of Rs. 2,00,000/-

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A19	12.01.2025	Letter of revival Legal heirs of deceased Borrower/ Co Obligants for a limit of Rs. 2,00,000/-
A20	28.03.2014	KCC facility Crop loan application for a sum, of Rs. 4,40,000/- executed by the 1^st& 3^rddefendant
A21	28.03.2014	Letter of Sanction for a sum of Rs. 4,40,000/- from the applicant Bank
A22	28.03.2014	Hypothecation agreement for a sum of Rs. 4,40,000/- from the applicant Bank executed by the 1^st& 3^rddefendant
A23	26.03.2014	Declaration under Form III executed by the 1^st defendant along with his children
A24	20.03.2017	Acknowledgement of liability for amount of Rs. 5,44,958/- up to 28.02.2017
A25	20.07.2019	Acknowledgement of Debt and Security for amount of Rs. 5,47,199/- up to 28.02.2019
A26	12.05.2022	Letter of Revival for a limit of Rs. 4,40,000/-
A27	12.01.2025	Letter of revival Legal heirs of deceased Borrower/ Co Obligants for a limit of Rs. 4,40,000/-
A28	23.04.2025	Recall Notice
A29	--	Account extract : 12089130000488, 42089326002014 & 12089130000632

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil –

Sd/- (T. RAJESH)

PRESIDING OFFICER

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Karnataka Gramin Bank v. Doddegowda

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Doddegowda

Case brief

What is this about?

What did the court decide?

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