Allowed

Karnataka Gramin Bank v. C M Krishnegowda Since Deceased Rep by LRs

DRT27 Aug 2026OA/2077/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application seeking a recovery certificate. Noting the defendants were absent, the Tribunal found the bank's evidence sufficient to prove loan availment, defaults, and mortgage creation. The claim for principal and interest was allowed, but interest rate was reduced from the agreed rate to 6% simple interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 21,87,724.08 with interest at 6% p.a. simple from the date of filing till realization, recoverable from the schedule property and other assets.

Karnataka Gramin Bank versus C M Krishnegowda… — Contract and Commercial Disputes | 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.2077/2025

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BETWEEN:

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Karnataka Grameena Bank Hanasoge Branch, Chunchanakatte Hobli, K.R.Nagara Taluk, Mysore District-571 617. Represented by its Branch Manager, Sri. Vicky Hudson.

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…APPLICANT

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AND:

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Sri. C.M. Krishnegowda S/o Magappa Gowda Since Deceased represented By legal heirs

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1a. Sri. Subramanya S/o Late C M Krishnegowda

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1b. Sri. Puttegowda S/o Late C M Krishnegowda

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Sri. Subramanya S/o Late C M Krishnegowda

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Sri. Putegowda S/o Late C M Krishnegowda

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All are residing at: Channamgere Village, K. R. Nagara Taluk, Mysore District-571617.

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...DEFENDANTS

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2 2077/2025

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Counsel on record/appeared for:

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Applicant : Bapu Vishnu 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. 21,87,724.08/(Rupees Twenty One Lakh Eighty Seven Thousand Seven Hundred Twenty Four and Paise Eight 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.1 is the deceased borrower and defendant No.2 & 3 are the mortgagors availed the following credit facilities from the applicant bank:-

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I. ATL Loan of a sum of Rs. 2,00,000/- (Rupees Two Lakh Only) on 07.03.2014.

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II. KCC Loan of sum of Rs. 6,00,000/- (Rupees Six Lakh Only) on 28.07.2016.

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It is the case of the applicant that defendant No.1a and 1b are the legal heirs of the deceased borrower defendant No.1.

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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, Simple Mortgage Deed, Registered Mortgage Deed.

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It is further contended that, despite availing the credit facilities,

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3 2077/2025

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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-18 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

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4 2077/2025

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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 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.2077/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 21,87,724.08/- (Rupees Twenty One Lakh Eighty Seven Thousand Seven Hundred Twenty Four and Paise Eight Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the

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5 2077/2025

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defendants including defendant No.1a and No.1b 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 and allowed the same to be r ecovered 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 other assets and from the defendant No. 1(a) and 1(b) to the extent of their inheritance of any estate from the deceased borrower defendant No.1 are liable for all such 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 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].

Sd/-

(T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Vicky Hudson, 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	07.03.2014	Loan Application
A2	07.03.2014	Sanction Letter
A3	07.03.2014	Loan Agreement
A4	10.01.2014	Simple Mortgage Deed
A5	24.01.2017	Letter of Commitment
A6	28.03.2019	Letter of Revival
A7	06.01.2022	Letter of Revival
A8	07.12.2024	Letter of Revival from Legal Heirs
A9	28.07.2016	Loan Application
A10	28.07.2016	Sanction Letter
A11	28.07.2016	Loan Agreement
A12	20.07.2016	Registered Mortgage Deed
A13	28.03.2019	Letter of Commitment
A14	06.01.2022	Letter of revival
A15	07.12.2024	Letter of Revival from Legal Heirs
A16	05.05.2025	Legal Notice

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7 2077/2025

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A17	--	Copy of the Statement of Account Certified under Banker’s Book of Evidence Act. Showing the Outstanding Liability under ATL Loan Account No. 42031326000214
A18	--	Copy of the Statement of Account Certified under Banker’s Book of Evidence Act. Showing the Outstanding Liability under KCC Loan Account No. 12031130000548

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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. C M Krishnegowda Since Deceased Rep by LRs

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. C M Krishnegowda Since Deceased Rep by LRs

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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