Allowed

Karnataka Gramin Bank v. S S Pasha

DRT27 Aug 2026OA/2069/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for a recovery certificate against four defendants for an agricultural loan default. The tribunal reduced the interest rate from the agreed rate to 6.0% simple annual interest due to the agricultural purpose of the credit facility.

What did the court decide?

Issuance of Recovery Certificate for Rs. 24,20,114.56 plus further interest at 6% p.a. (simple) from filing date against defendants and heirs; recovery to proceed from schedule properties and personal

Karnataka Gramin Bank versus S S Pasha — Execution and Attachment | 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.2069/2025

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BETWEEN:

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Karnataka Grameena Bank Saragur Branch, Office at Sri. Rama Badavane, Hunsur Beguru Road Saraguru, Mysore District-571121. Represented by its Branch Manager And Principal Officer in Charge of the Branch Amith R. …APPLICANT

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AND:

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Mr. S S Pasha S/o Mr. Sattar Sab Aged about 79 years,

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Mr. Abdul Jaleel S/o Mr. S S Pasha Aged about 49 years Defendants 1 &2 are residing at: Near Urdu School, Devaraja Street, 2^nd Ward, Saragur, Mysore Distirict-571121.

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Mr. Mahadevappa S/o Late Mahadevappa Aged about 79 Years, Residing at Kothegala Village & Post, Saragur Taluk, Mysore District-571121.

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Mrs. Shivamma W/o Late Shivanna Aged about 73 years Residing at Dadadahalli Village,

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Hanchipura post, Saragur Taluk, Mysore District-571121.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Srinivasa Murthy H C 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. 24,20,114.56/(Rupees Twenty Four Lakh Twenty Thousand One Hundred Four and Paise Fifty 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 defendant No.2 is the legal heir of deceased Borrower defendant No.1, the defendants availed the following credit facilities from the applicant bank:-

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i. KCC Loan of a sum of Rs. 1,64,000/- (Rupees One Lakh Sixty Four Thousand Only) on 20.06.2011.

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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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iii. AGRI Personal Loan of sum of Rs. 50,000/- (Rupees Fifty Thousand Only) on 18.07.2011.

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iv. General Credit Card Loan of sum of Rs. 50,000/- (Rupees Fifty Thousand Only) on 18.07.2011.

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It is also the case of the applicant that, in view of the above availed

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loans, the defendants executed necessary loan documents along with General Power of Attorney, Loan Agreement, Memorandum of Agreement, Guarantee 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 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-38 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 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.2069/226, stands allowed,

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

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24,20,114.56/- (Rupees Twenty Four Lakh Twenty Thousand One

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Hundred Fourteen and Paise Fifty Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants and the defendant No.2 to the extent of their inheritance of any estate from the deceased borrower defendant No.1, after giving credit to all the amount recovered and received during the pendency of the OA

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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

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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 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 27^th Day of August, 2026].

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Sd/-

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(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: Amith R, 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	Annexure No.
1	Copy of the Application Cum Appraisal Report for Agricultural loan (KCC) dated 20.06.2011	A01
2	Copy of the General power of Attorney dated 04.06.2011 executed by Mr. S S Pasha.	A02
3	Copy of the Sanction conveying Letter- Kisan Credit Card dated 20.06.2011.	A03
4	Copy of Loan Agreement dated 20.06.2011 executed by Defendant No.1&2.	A04
5	Copy of the Letter of Commitment dated 18.06.2014 executed by Defendant No.2.	A05
6	Copy of the acknowledgment of Liability for KCC dated 13.02.2017 executed by Defendant No.2.	A06
7	Copy of the acknowledgment of Liability for KCC dated 16.03.2019 executed by Defendant No.2.	A07

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8	Copy of the Letter of Revival for KCC dated 14.03.2022 executed by Defendant No.2.	A08
9	Copy of the Application Form cum Appraisal Report for Agricultural Term Loans (ATL) dated 20.06.2011	A09
10	Copy of the Loan sanction conveying Letter dated 20.06.2011.	A10
11	Copy of the Memorandum of Agreement (ATL) dated 20.06.2011 executed by Defendant No.1&2.	A11
12	Copy of the Mortgage deed dated 10.06.2011 executed by Defendant No.1&2.	A12
13	Copy of the Letter of Acknowledgement of security/ Liability from mortgagors dated 18.04.2021 executed by Defendant No.2	A13
14	Copy of the Letter of Commitment dated 17.06.2014 executed by Defendant No.2	A14
15	Copy of the Letter of Commitment dated 15.06.2017 executed by Defendant No.3	A15
16	Copy of the acknowledgment of Liability for KCC dated 16.03.2019 executed by Defendant No.2.	A16
17	Copy of the Letter of Revival for ATL dated 15.03.2022 executed by Defendant No.2.	A17
18	Copy of the Application for Personal Loan dated 18.07.2011 by Defendant Nos.1&2	A18
19	Copy of the sanction conveying Letter – personal Loan dated 18.07.2011 to Defendant Nos.1&2	A19
20	Copy of the Personal Loan –Agreement dated 18.07.2011 executed by Defendant No.2	A20
21	Copy of the Guarantee Agreement dated 18.07.2011 executed by Defendant No.3.	A21

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22	Copy of the Demand promissory Note & Take Delivery Letter dated 18.07.2011 executed by Defendant No.2 & 3.	A22
23	Copy of the Letter of Commitment dated 15.07.2014 executed by Defendant No.2.	A23
24	Copy of the acknowledgment of Liability for personal Loan dated 09.07.2017 executed by Defendant No.2.	A24
25	Copy of the acknowledgment of Liability for personal loan dated 13.03.2019 executed by Defendant No.2.	A25
26	Copy of the Letter of Revival for personal loan dated 11.03.2022 executed by Defendant No.2.	A26
27	Copy of the Loan Application for individual dated 20.07.2011 by the Defendants No.1&2	A27
28	Copy of the sanction conveying Letter dated 20.07.2011	A28
29	Copy of the Demand promissory Note dated 20.07.2011 executed by Defendant No.2 & 4.	A29
30	Copy of the acknowledgment of Liability dated 23.06.2014 executed by Defendant No.2	A30
31	Copy of the acknowledgment of Liability dated 23.03.2017 executed by Defendant No.2	A31
32	Copy of the acknowledgment of Liability dated 13.03.2019 executed by Defendant No.2	A32
33	Copy of the Letter of Revival dated 10.03.2022 executed by Defendant No.2.	A33
34	Copy of the Legal Notice dated 18.02.2025.	A34
35	Copy of the Statement of Account certified under Bankers’ Book of Evidence Act in respect of KCC Loan account No. 12036130000185.	A35

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36 Copy of the Statement of Account certified under A36 Bankers’ Book of Evidence Act in respect of ATL Loan account No. 42036326004111.

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

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. S S Pasha

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. S S Pasha

Case brief

What is this about?

What did the court decide?

What the court decided

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