Allowed

Karnataka Gramin Bank v. B v Basavaraju

DRT11 Sept 2026OA/2082/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by Karnataka Grameena Bank against two defendants for recovery of dues totaling Rs. 22,36,249.00 arising from housing and agricultural loans. The defendants appeared ex parte. The court upheld the claim based on uncontroverted documentary evidence, allowing recovery of the principal amount with interest reduced to 7% for housing loans and 6% for agricultural loans from the date of filing until realization.

What did the court decide?

Declaratory order allowing recovery of Rs. 22,36,249.00 plus interest at 7% (housing) and 6% (agricultural) simple interest from filing date; directions to issue Recovery Certificate against schedule properties and other assets; costs to the applicant.

Karnataka Gramin Bank versus B v Basavaraju — 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 11^th Day of September 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.2082/2024

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BETWEEN:

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Karnataka Grameena Bank Kuruvanka, Banavara Hobli, Arasikere Taluk, Hassan District, Karnataka.

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…APPLICANT

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AND:

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Sri.B.V. Basavaraju

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S/o.Late.Veerabadharappa

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2^nd Cross, Behind Siddeshwara College,

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Arasikere Taluk,

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Hassan District-573103.

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Sri.Manjunath B.V S/o.Sri.Venkata Bhovi Agriculturist, Byragondanahalli Village, Chaluvenahalli, Arasikere Taluk, Hassan District-573103.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri.N.G.Ravi Kumar Defendants : Exparte

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2 OA No.2082/2024

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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.22,36,249.00 (Rupees Twenty-Two Lakhs Thirty-Six Thousand Two Hundred and Forty-Nine Only) with further interest thereon from the date of filing the Application till realization from the Defendants

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The Defendant No.1 availed a sum of Rs.7,50,000/- (Rupees Seven Lakh Fifty Thousand Only) for the purpose of Renovation of the House.

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The Defendant No.1 availed a sum of Rs.6,00,000/- (Rupees Six Lakhs Only) for the purpose of Growing Crop.

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The Defendant No.1 availed a sum of Rs.2,30,000/- (Rupees Two Lakh Thirty Thousand Only) for the purpose of Land Development and Fencing.

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The Defendant No.1 availed a sum of Rs.50,000/- (Rupees Fifty Thousand Only) for the purpose of Non-Agricultural Loan during the period of Covid.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage, over the Schedule properties.

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3 OA No.2082/2024

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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 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, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 13.01.2026.

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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 A29 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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4 OA No.2082/2024

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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 facility 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 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 facility was availed for Housing Loan 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 @ 7% p.a.(simple) for Housing Loan and @ 6% for Agricultural Loan.

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In the result, OA.No.2082/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.22,36,249.00 (Rupees Twenty-Two Lakhs Thirty-Six Thousand Two Hundred and Forty-Nine Only) in the matter above which:

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5 OA No.2082/2024

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a) The Defendant No.1 and 2 to pay a sum of Rs.1,01,847.00 (Rupees One Lakh One Thousand Eight Hundred and Forty-Seven Only) along with current and future interest 7% p.a.(simple) for Housing Loan,

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b) The Defendant No.1 to pay a sum of Rs.21,34,402.00 (Rupees Twenty-One Lakhs Thirty-Four Thousand Four Hundred and Two Only) along with current and future interest @ 6% for Agricultural Loan,

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from the date of the OA till the date of realization, after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered by proceeding against the schedule properties. 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 defendant No.1 and

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is other assets are liable for all such amounts due in loan accounts. The Defendant No.2 and his other assets, are only liable for the 1^st Loan i.e., housing loan.

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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 order and transferred to Recovery for execution.

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6 OA No.2082/2024

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v) Interim Application pending, if any, stands disposed of with

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this Final Order.

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17. 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 (GS), 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: Mr.Raj Kumar Kola, Manager of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No	Description of the Documents	Date	Exhibits Number
1.	Loan Application	18-01-2016	A1
2.	Loan sanction letter	02-02-2016	A2
3.	Agreement of loan with translation	03-02-2016	A3
4.	On-demand promissory note	03-02-2016	A4
5.	Registered Simple mortgage deed with translation	03-02-2016	A5

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7 OA No.2082/2024

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6	Deed of Guarantee executed by Defendant No.2	03-02-2016	A6
7.	Acknowledgement of liability executed from the mortgagors executed by Defendant No.1	14-01-2019	A7
8.	Letter of Revival executed from the mortgagors by Defendant No.1	06-01-2022	A8
9.	Statement of Accounts from 02-02-2016 to 03-04-2024 with certificate	30-04-2024	A9
10.	Loan Application with Translation document	05-03-2016	A10
11.	Crop Loan sanction letter under the scheme of Kissan Credit Card with Translation document	09-03-2016	A11
12.	Hypothecation Agreement with Translation document	09-03-2016	A12
13.	Registered mortgage deed document	08-03-2016	A13
14.	Letter of Commitment	02-03-2017	A14
15. 16.	Acknowledgement of liability Letter of Revival	06-06-2019 23-05-2022	A15 A16
	Statement of Accounts from 09-03-	30-04-2024	A17
17.	2016 to 31-03-2024 with certificate
18.	Loan Application with Translation document	10-08-2016	A18

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8 OA No.2082/2024

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19.	Sanction Communication letter with Translation document	24-01-2017	A19
20.	Hypothecation deed with Translation document	24-01-2017	A20
21.	Registered Simple mortgage deed with Translation document	11-02-2017	A21
22.	Acknowledgement of liability executed from the mortgagors executed by D1	06-06-2019	A22
23.	Letter of Revival executed from the mortgagors executed by D1	23-05-2022	A23
24.	Statement of Accounts from 4-01-2017 to 31-03-2024 with certificate	30-04-2024	A24
25.	Loan Application	15-05-2020	A25
26.	Pronote	15-05-2020	A26
27.	Letter of Revival	10-05-2023	A27
28.	Statement of Accounts from 15-05-2020 to 31-03-2024 with certificate	30-04-2024	A28
28.	Consolidated Statement	-------	--------
29.	Office copy of the legal notice with translation	05-01-2024	EX-A29

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. B v Basavaraju

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. B v Basavaraju

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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