DRT allowed the bank's Original Application for a recovery certificate against defendants for outstanding agricultural loans and guarantees due to non-repayment.
Recovery certificate issued for Rs. 28,11,540/- with 6% simple interest, recoverable from schedule property and personal liabilities of defendants.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 30th Day of January, 2026
Present: Sri. T. RAJESH Presiding Officer
OA.No.2167/2024
BETWEEN:
Karnataka Grameena Bank, Raibag Branch, Ankali- Raibag Road, Main Road, Raibag Taluk, Belgaum District- 591 317. Represented by its Branch Manager, Sri. Basavaraj Veerabhadra Irannavar.
…APPLICANT
AND:
OA 2167/2024
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...DEFENDANTS
Counsel on record/appeared for: Applicant : Vijay S Defendants : Exparte
FINAL ORDER
loans, the defendants executed necessary loan documents along with guarantee agreement and simple mortgage deed.
OA 2167/2024
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as against the defendants?
Both these issues are gone into and decided together.
OA 2167/2024
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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 the security interest 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.
the view that OA is to be allowed.
availed for Agriculture 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).
28,11,540/- (Rupees Twenty Eight Lakh Eleven Thousand Five Hundred
Forty Only) with further interest @6.00 % p.a.(simple) as follows:-
a) 1st loan- Rs. 12,78,725/- (Rupees Twelve Lakh Seventy Eight Thousand Seven Hundred Twenty Five Only) from the date of filing OA till the
OA 2167/2024
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realization, from the defendants Nos. 1 & 2 jointly, severally & personally,
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.
b) 2nd loan- Rs. 15,32,815/- (Rupees Fifteen Lakh Thirty Two Thousand Eight Hundred Fifteen Only) from the date of filing OA till the realization, from the defendants Nos. 1, 3 & 4 jointly, severally & personally, 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.
Properties schedule to the OA be the schedule to the recovery certificate.
ii) If the sale proceeds are not found sufficient to cover the
amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for the respective amounts due under the respective loan accounts.
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.
iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of in terms
OA 2167/2024
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of this final order.
14. Communicate a copy of the order to the parties concerned in terms
of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)
Rules, 1993.
[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30th Day of January, 2026].
Sd/- (T. RAJESH)
PRESIDING OFFICER ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Vasudev Yamanappa Naik, Senior Manager, of Applicant Bank
Exhibits on the part of the Applicant:
| Exhibit Nos. |
Date | Particulars of Documents |
|---|---|---|
| I- Crop loan facility (A/c No. 89093041561) |
||
| A1 | 08.02.2010 | Loan application |
| A2 | 11.02.2010 | Consideration receipt for Rs. 2,40,000/- executed by defendant No.1 in favour of the applicant bank |
| A3 | 11.02.2010 | Agreement for agricultural advances executed by defendant No. 1 in favour of the applicant bank |
| A4 | 11.02.2010 | Guarantee agreement executed by defendant No.1 in favour of the applicant bank |
| A5 | 11.02.2010 | Simple mortgage deed executed by defendant No.1 in favour of the applicant bank |
| A6 | 10.02.2010 | Creation of charge letter issued by the applicant bank to the Tahsildar |
| A7 | 10.02.2010 | Letter of declaration executed by defendant No.1 in favour of the applicant bank |
| A8 | 11.02.2010 | Authorization letter executed by defendant No.1 in favour of the applicant bank |
| A9 | 23.11.2017 | Agreement for conversion/ rephasement of loans executed by defendant No.1 and 2 in favour of the applicant bank |
OA 2167/2024
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| A10 | 28.12.2012 | Acknowledgement of debt executed by defendant No.1 and 2 in favour of the applicant bank |
|---|---|---|
| A11 | 18.11.2015 | Acknowledgement of debt executed by defendant No.1 and 2 in favour of the applicant bank |
| A12 | 20.03.2021 | Acknowledgement of debt executed by defendant No.1 and 2 in favour of the applicant bank |
| A13 | 25.05.2022 | Registered notice issued by applicant bank to the defendants |
| A14 | 10.08.2023 | Legal notice issued by the applicant bank to the defendants |
| A15 | -- | Served acknowledgements |
| A16 | -- | Statement of account |
| II- Loan development loan (Vikas Bahumukh Scheme facility) (A/c No. 89089210946) |
||
| A17 | 08.12.2010 | Loan application |
| A18 | 08.12.2010 | Loan sanction letter |
| A19 | 08.12.2010 | Consideration receipt for Rs. 3,50,000/- executed by defendant No. 1 in favour of the applicant bank |
| A20 | 08.12.2010 | Agreement for agricultural advances executed by defendant No.1 in favour of the applicant bank |
| A21 | 08.12.2010 | Guarantee agreement executed by defendant No.3 and 4 in favour of the applicant bank |
| A22 | 07.12.2010 | Simple mortgage deed executed by defendant No.1 in favour of the applicant bank |
| A23 | 13.03.2017 | Agreement for conversion/ rephasement of loans executed by defendant No.1, 3 and 4 in favour of the applicant bank |
| A24 | 30.11.2014 | Acknowledgement of debt executed by defendant No. 1, 3 and 4 in favour of the applicant bank |
| A25 | 06.03.2021 | Acknowledgement of debt executed by defendant No. 1, 3 and 4 in favour of the applicant bank |
| A26 | 25.05.2022 | Registered notice issued by the applicant bank to the defendants |
| A27 | 10.08.2023 | Legal notice issued by the applicant bank to the defendants |
| A28 | -- | Served acknowledgements |
| A29 | -- | Statement of account |
Witness Examined for the Defendants:
-Nil -
List of Documents Exhibited for the Defendants:
-Nil –
Sd/- (T. RAJESH) PRESIDING OFFICER
3 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed?
Can the recovery certificate be allowed with reduced interest for agricultural loans?
1 provisions across 1 enactments
Karnataka Grameena Bank, Raibag Branch
Parashuram Bhima Gumate
Halappa Jatteppa Pujeri
Bharath Annasab Lohar
Mahadev Annappa Hosamani
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
