Allowed

Karnataka Gramin Bank v. Jayashankar

DRT30 Jun 2026OA/2503/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for a recovery certificate of Rs. 23.63 lakh plus interest reduced to 6% p.a. against four borrowers who defaulted on a Kisan Credit Card loan, as the defendants appeared ex parte.

What did the court decide?

Recovery certificate issued for Rs. 23,63,848.32 with 6% simple interest from filing till realization against the defendants jointly, severally and personally.

Karnataka Gramin Bank versus Jayashankar — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

¶2

AT BENGALURU

¶3

Dated this 30^th Day of June, 2026

¶4

Present: Sri. T. RAJESH Presiding Officer

¶5

OA.No.2503/2024

¶6

BETWEEN:

¶7

Karnataka Grameena Bank Head office at: Gandhinagar, Bellary – 583 103 Branch office at: Geetha Road, Robertsonpet, KGF, Kolar District – 563 122

¶8

Represented by its Branch Manager Sathishkumar …APPLICANT

¶9

AND:

¶10

Sri. Jayashankar S/o. Narayanappa Aged about 63 years Chaldiganahally, Parandahally Post, KGF, Kolar District – 563 122

¶11

Sri. Venkata Muniyappa S/o. late Pampanna Aged about 70 years Thongla, Andersonpet, KGF, Kolar District – 563 113

¶12

Sri. Naresh Babu J S S/o. Sri. Jayashankar Aged about 44 years Chaldiganahally, Parandahally Post, KGF, Kolar District – 563 122

¶13

Sri. Harish J S S/o. Sri. Jayashankar Aged about 42 years Chaldiganahally, Parandahally Post, KGF, Kolar District – 563 122 ...DEFENDANTS

¶14

OA-2503/2024

¶15

¶16

Counsel on record/appeared for:

¶17

Applicant : Sri. Srinivasa Murthy HC Defendants : Ex parte

¶18

FINAL ORDER

¶19

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 23,63,848.32/- (Rupees Twenty-Three Lakhs Sixty-Three Thousand Eight Hundred and Forty-Eight and Paisa Thirty-Two Only) with further interest thereon from the date of filing the Application till realization.

¶20

It is the case of the applicant that, the defendants are availed a kisan credit card of Rs. 6,00,000/- (Rupees Six Lakhs Only) for cultivation of agricultural crops.

¶21

It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan document along with Simple mortgage deed.

¶22

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 accounts as NPA.

¶23

OA-2503/2024

¶24

¶25

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.

¶26

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 28.10.2025.

¶27

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-10 and got the same marked in evidence.

¶28

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.

¶29

The following issues arise for consideration in this matter:

¶30

i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are

¶34

sufficient to prove availment of credit facility as stated in the OA, creation of the security interest and the defaults committed in the

¶35

OA-2503/2024

¶36

¶37

accounts. The liability of the defendants and the claim of the amount

¶38

due are also proved by the above document. The claim of the

¶39

applicant is well within the limitation.

¶40

Hence in view of the findings arrived herein above, the Tribunal

¶41

find both these issues are in favour of applicant and hence, this

¶42

Tribunal is of the view that OA is to be allowed.

¶43

Taking into consideration the facts that the credit facility is

¶44

availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view

¶45

that the OA can be allowed with a reduced interest of 6.00% (simple).

¶46

In the result, OA.No.2503/2024 stands allowed,

¶47

The applicant is allowed to recover an aggregate sum of Rs.

¶48

23,63,848.32/- (Rupees Twenty-Three Lakhs Sixty-Three Thousand

¶49

Eight Hundred and Forty-Eight and Paisa Thirty-Two Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till

¶50

the realization, from the defendants jointly, severally and personally,

¶51

after giving credit to all the amounts recovered and received during

¶52

the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to

¶53

the OA be the schedule to the recovery certificate.

¶54

OA-2503/2024

¶55

¶56

ii) If the sale proceeds are not found sufficient to cover the

¶57

amount due and payable to the applicant bank, the defendants

¶58

jointly, severally and personally and their assets are liable for all such

¶59

amounts due under the loan accounts.

¶60

iii) The applicant bank is allowed cost of the proceedings

¶61

which applicant to file cost memo within 7 days from the date of receipt of the order.

¶62

iv) The Recovery Certificate to be drawn in terms of this order

¶63

and transferred to Recovery for execution.

¶64

v) Interim application pending, if any, stands disposed of in

¶65

terms of this final order.

¶66

Communicate a copy of the order to the parties concerned in

¶67

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

¶68

(Procedure) Rules, 1993.

¶69

[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

¶70

the Open Court, this the 30^th Day of June, 2026].

¶71

Sd/-

¶72

(T. RAJESH) PRESIDING OFFICER

¶73

ANNEXURES

¶74

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶75

AW-1 Sathish Kumar, S/o Sri. Sivaraman, Branch Manager, of Applicant Bank.

¶76

OA-2503/2024

¶77

¶78

Exhibits on the part of the Applicant:

¶79

Exhibit	Particulars of Documents
Nos.
A1	Application form cum appraisal report for PKCC dated 23.01.2014
A2	Request for agricultural overdraft facilities/Pragathi Krishna kisan credit card dated 23.01.2014
A3	Memorandum of agreement for agricultural loans dated 23.01.2014
A4	Simple mortgage deed for KCC/OD facility to agricultural dated 22.01.2014
A5	Letter of revival for KCC dated 12.01.2017 executed by defendants
A6	Letter of revival for KCC dated 27.11.2019 executed by defendants
A7	Letter of revival for KCC dated 08.09.2022 executed by defendant no.1
A8	Letter of revival for KCC dated 08.09.2022 executed by defendant no. 2
A9	Legal notice dated 26.09.2024 issued in respect of KCC loan account no. 67615354007316
A10	Statement of account certified under bankers’ book of evidence act in respect of KCC loan account no. 67615354007316
Witness	Examined for the Defendants: -Nil -
List of D	ocuments Exhibited for the Defendants: -Nil -

¶80

Sd/-

¶81

(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Jayashankar

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Jayashankar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of Baroda versus M/s Anugya Enterprises

Bank of Baroda (Vijaya Bank) versus M/s Maa Sharde Agritech

Bank of Baroda versus M/s Balajee Coal Depot

Manoj Kumar Sharma versus Punjab National Bank

Sri Ram Bhagat Sharma versus Icici Bank Limited

Icici Bank Limited versus M/S Niraj Marble and Tiles and Ors.