Karnataka Gramin Bank v. C Raju
Case brief
What is this about?
The Debt Recovery Tribunal allowed an OA for issuance of a Recovery Certificate against two defendants who failed to appear. The court undisputedly accepted bank evidence proving the availing of four agricultural loans totaling approximately Rs. 11.5 lakhs, mortgage creation, and subsequent default. While approving the claim for Rs. 22.78 lakhs including interest, the Tribunal exercised discretion to reduce the applicable interest rate to 6% simple per annum as the loans were for agricultural purposes. The order mandates execution against scheduled properties and personal assets.
What did the court decide?
Recovery Certificate directed against defendants jointly, severally, and personally for Rs. 22,78,180/- plus 6% simple annual interest from filing date until realization, including right to proceed against schedule property.