Allowed

Karnataka Gramin Bank v. Y D Puttasiddappa

DRT27 Apr 2026OA/2252/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Recovery Certificate application filed by Karnataka Gramin Bank against three respondents. The claim of Rs. 34.52 lakhs arising from agricultural improvement and KCC loans was unopposed due to ex parte proceedings. The Tribunal granted relief with a reduced simple interest rate of 6% p.a.

What did the court decide?

Recovery Certificate issued for Rs. 34,52,118.26 with simple interest at 6% p.a. payable from the date of filing until realization.

Karnataka Gramin Bank versus Y D Puttasiddappa — Banking and Recovery | 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 April, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.2252/2025

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BETWEEN:

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Karnataka Gramin Bank Branch office at Hoskere, Gubbi Taluk, Tumkur District-572222 Rep. by Sri. Dharanesh B S Branch Manager … APPLICANT

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AND:

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Sri. Y.D. Puttasiddappa S/o. Late Dodda Siddappa Aged about 62 years

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Sri. Dhruvakumar Y.P S/o. Y.D. Puttasiddappa Aged about 38 years

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Sri. Mohankumar Y.P. S/o. Y.D. Puttasiddappa Aged about 36 years

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All defendants are R/at. Yaraballi Village, Hagalawadi Hobli, Gubbi Taluk, Tumkur District-572117

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. Velanganni C Defendants : Exparte

OA. No.2252/2025

:FINAL ORDER:

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.34,52,118.26 (Rupees Thirty Four Lakh Fifty Two Thousand One Hundred Eighteen and Twenty Six Paisa only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed Agricultural Improvement loan of Rs.1,00,000/- on 16.02.2012 for the purpose of improvement crops; Rs.4,00,000/- for the purpose of setting up dairy unit of 10 CB cows on 14.07.2012; Rs.1,50,000/- for the purpose of improvement of agriculture on 21.01.2013; KCC loan of Rs.6,00,000/- on 16.03.2013.

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

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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

OA. No.2252/2025

as NPA.

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 20.11.2025.

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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 A27 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

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remains unrebutted as defendants remained exparte. The

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OA. No.2252/2025

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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 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 facilities were availed for agricultural purpose 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 6.00% p.a.(simple).

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In the result, OA.No.2252/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.34,52,118.26 (Rupees Thirty Four Lakh Fifty Two Thousand

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One Hundred Eighteen and Twenty Six Paisa only) with further

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OA. No.2252/2025

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interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant, after giving credit to all the amounts recovered and received during the pendency of the OA

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and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule property. 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 defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

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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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v) Interim Application pending, if any, stands disposed of with this Final Order.

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OA. No.2252/2025

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14. Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of April 2026].

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Dharanesh B S, 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	Exhibit Number
1	Copy of the application form for agricultural/improvement loan dated 16.02.2012	A1
2	Copy of the sanction letter dated 16.02.2012	A2
3	Copy of the mortgage agreement dated 16.02.2012	A3
4	Copy of the Simple Mortgage Deed dated 01.02.2012	A4
5	Copy of the Agreement to pay time barred debts dated 09.03.2020	A5
6	Copy of letter of Revival dated 04.03.2023	A6

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OA. No.2252/2025

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7	Copy of application form for agricultural/improvement loan dated 05.06.2012	A7
8	Copy of Sanction Letter dated 14.07.2012	A8
9	Copy of Mortgage Agreement dated 14.07.2012	A9
10	Copy of Simple Mortgage Deed dated 07.07.2012	A10
11	Copy of Agreement to repay time barred debts dated 09.03.2020	A11
12	Copy of Letter of Revival dated 04.03.2023	A12
	Copy of Application Form for
13	Agricultural/Improvement Loan cum Sanction Letter dated 21.01.2013	A13
14	Copy of Mortgage Agreement dated 21.01.2013	A14
15	Copy of Simple Mortgage Deed dated 08.01.2013. 5620/1212	A15
16	Copy of Agreement to repay time barred debts dated 09.03.2020	A16
17	Copy of Letter of Revival dated 04.03.2023	A17
18	Copy of Application Form for KCCS Agricultural Loan along with Sanction dated 16.03.2013	A18
19	Copy of Mortgage Agreement dated 16.03.2013.	A19
20	Copy of Simple Mortgage Deed dated 11.03.2013. 7326/12-13	A20
21	Copy of Agreement to pay time barred debts dated 20.03.2020.	A21
22	Copy of Letter of Revival dated 04.03.2023	A22
23	Copy of the Legal Notice dated 08.11.2024	A23
24	Copy of the Statement of Account Certified under Bankers' Book of Evidence Act. showing the	A24

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OA. No.2252/2025

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25	outstanding Liability under AGRI TERM LOAN A/c No.42160326000212. Copy of the Statement of Account Certified under Bankers' Book of Evidence Act. showing the outstanding Liability under AGRI TERM LOAN A/c No.42160326000712.	A25
26	Copy of the Statement of Account Certified under Bankers' Book of Evidence Act. showing the outstanding Liability under AGRI TERM LOAN A/c No. 42160326000113.	A26
	Copy of the Statement of Account Certified under
27	Bankers' Book of Evidence Act. showing the	A27
	outstanding Liability under KCC A/c No. 42160354005221.

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Sd/(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Y D Puttasiddappa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Y D Puttasiddappa

Case brief

What is this about?

What did the court decide?

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Issues for consideration

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