Allowed

Karnataka Gramin Bank v. Mallappa Kurubar and Others

DRT30 Jan 2026OA/2455/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed under Section 19 of RDB Act for issuance of Recovery Certificate. Due to respondents' ex-parte absence, claims were proved on documentary evidence. The Tribunal allowed the reference with reduced interest at 6% simple p.a.

What did the court decide?

Issue of Recovery Certificate allowing recovery of aggregate sum of Rs. 23,53,750.30 with further interest at 6% p.a. (simple).

Karnataka Gramin Bank versus Mallappa Kurubar and Others — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 30^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2455/2024

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BETWEEN:

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Karnataka Grameena Bank, (Pragathi Gramin Bank), Branch office at, Koppar Branch, Deodurga Taluk, Raichur District- 584101, Represented by its Branch Manager, Sri. Vishwanath Ganachari.

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…APPLICANT

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AND:

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Sri. Mallappa Kurubar, S/o Thammanna, Aged about 44 years.

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Sri. Raghothamachar, S/o Bhimasenachar, Aged about 48 years.

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Sri. Ranga Rao, S/o Venkoba Rao, Aged about 40 years.

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All are residing at Koppar Village, Deodurga Taluk, Raichur District. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mohamed Afroze Ahamed Defendants : Exparte

OA 2455/2024

FINAL ORDER

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. 23,53,750.30 (Rupees Twenty Three Lakh Fifty Three Thousand Seven Hundred Fifty and Paise Thirty 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 availed the following loans:-

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1^st loan- Development loan of Rs. 1,50,000/- (Rupees One Lakh Fifty Thousand Only)- defendant No. 2 is the co-obligant.

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2^nd loan- PKCC loan of Rs. 8,50,000/- (Rupees Eight Lakh Fifty Thousand Only)- defendant No. 3 is the co-obligant.

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It is also the case of the applicant that, in view of the above availed

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loans, the defendants executed necessary loan documents along with letter of revivals, memorandum of agreement for agricultural loans and registered mortgage deed.

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

OA 2455/2024

due in the account.

Despite, summons the defendants, they failed to appear, resulting the defendants being set exparte on 24.09.2025.

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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 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 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

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OA 2455/2024

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defendants and the claim of the amount due are also proved by the above

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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

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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 are

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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).

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In the result, OA.No.2455/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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23,53,750.30 (Rupees Twenty Three Lakh Fifty Three Thousand Seven

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Hundred Fifty and Paise Thirty Only) with further interest @6.00 %

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p.a.(simple) as follows:-

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a) 1^st loan- Rs. 1,19,391.00 (Rupees One Lakh Nineteen Thousand Three

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Hundred Ninety One Only) from the date of filing OA till the realization, from the defendants Nos. 1 & 2 jointly, severally & personally, after giving

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credit to all the amount recovered and received during the pendency of

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the OA and allowed the same to be recovered by proceeding against

OA 2455/2024

schedule property.

b) 2^nd loan- Rs. 22,34,359.30 (Rupees Twenty Two lakh Thirty Four Thousand Three Hundred Fifty Nine and Paise Thirty Only) from the date of filing OA till the realization, from the defendants Nos. 1 & 3 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.

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Properties schedule 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 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.

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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)

OA 2455/2024

Rules, 1993.

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of January, 2026].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Vishwanath Ganachari, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	18.07.2012	Application form cum appraisal report agricultural term loan executed by the 1^stand defendants	for 2^nd
A2	01.08.2012	Sanction memorandum
A3	01.08.2012	Memorandum of agreement for agricultural lo executed by the 1^stand 2^nddefendants	ans
A4	27.07.2012	Registered mortgage deed
A5	28.05.2015	Letter of revival executed by the 1^stand defendants	2^nd
A6	10.05.2018	Letter of revival executed by the 1^stdefendant
A7	10.05.2018	Letter of revival executed by the 2^nddefendant
A8	03.02.2021	Letter of revival executed by the 1^stand defendants	2^nd
A9	23.01.2024	Letter of revival executed by the 1^stdefendant
A10	23.01.2024	Letter of revival executed by the 2^nddefendant
A11	01.03.2017	Loan application for PKCC loan
A12	09.03.2017	Loan sanction conveying letter
A13	09.03.2017	Memorandum of agreement for agricultural lo executed by the 1^stand 2^nddefendants	ans
A14	04.03.2017	Registered mortgage deed
A15	28.03.2019	Letter of revival executed by the 1^stand defendant	3^rd
A16	20.01.2022	Letter of revival executed by the 1^stand defendant	3^rd

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OA 2455/2024

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A17	--	Statement of account in development loan in A/No. 70515326005612
A18	--	Statement of account in PKCC loan in
		7051535001719 (Old A/c No. 10715131017690)

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Mallappa Kurubar and Others

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Mallappa Kurubar and Others

Case brief

What is this about?

What did the court decide?

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