Allowed

Karnataka Gramin Bank v. Yallawwa

DRT27 Aug 2026OA/256/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Original Application filed by Karnataka Grameena Bank for issuance of Recovery Certificate against the defendant borrower. The court reduced the agreed interest rate to 6% simple interest on the outstanding principal and allowed recovery from personal assets and mortgaged schedule property.

What did the court decide?

Recovery Certificate issued for Rs.41,93,118.22 plus 6% simple interest from filing date till realization; recoverable from defendant personally and schedule property.

Karnataka Gramin Bank versus Yallawwa — 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 August, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.256/2024

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BETWEEN:

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Karnataka Grameena Bank (Earlier Krishna Grameena Bank) Udachan Branch, Afzalpur Taluk, Gulbarga District-585105 Rep.by its Branch Manager

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… APPLICANT

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AND:

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Smt. Yallawwa W/o. Annappa Halasangi Aged about 64 years, R/at. Udachan village, Afzalpur Taluk, Gulbarga District-585105

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. T S Mahabaleshwara Defendant : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.41,93,118.22 (Rupees Forty One Lakh Ninety Three Thousand One Hundred Eighteen and Twenty Two Paisa only) with

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OA. No.256/2024

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further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant availed Agricultural Term loan limit of Rs.4,50,000/- on 19.07.2006 and Crop loan limit of Rs.50,000/- on 01.02.2008.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendant 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 facilities, agreeing to service the loan amount promptly and regularly, the defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan account 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 due in the account.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 07.01.2025. 7. 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 A17 and got the same marked in

OA. No.256/2024

evidence.

Heard the Ld. Counsel for the Applicant and considered

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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 defendant?

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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 defendant 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 security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendant 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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OA. No.256/2024

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Hence in view of the above findings which cover both the

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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

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

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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.256/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.41,93,118.22 (Rupees Forty One Lakh Ninety Three

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Thousand One Hundred Eighteen and Twenty Two Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant, after giving credit to all

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the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against

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defendant 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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OA. No.256/2024

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

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the amount due and payable to the applicant bank, the defendant personally and his other assets are liable for all such

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of

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with this Final Order.

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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 August 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.256/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Ravindra, Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit Number
1	19.07.2006	Loan agreement executed by 1^st defendant	A1
2	19.07.2006	Simple mortgage deed executed by 1^stdefendant	A2
3	15.07.2009	Revival letter	A3
4	02.07.2012	Revival letter	A4
5	01.07.2015	Revival letter	A5
6	30.06.2018	Revival letter	A6
7	12.02.2021	Revival letter	A7
8	21.02.2017	Acknowledgment of security/liability form the mortgagor	A8
9	-	Statement of account extract	A9
10	01.02.2008	Loan agreement	A10
11	30.01.2011	Revival letter	A11
12	25.01.2014	Revival letter	A12
13	18.10.2016	Revival letter	A13
14	30.06.2018	Revival letter	A14
15	12.02.2021	Revival letter	A15
16	24.11.2022	Office copy of legal notice	A16
17	-	Statement of account extract	A17

(T. RAJESH)

Sd/-

OA. No.256/2024

PRESIDING OFFICER

Karnataka Gramin Bank v. Yallawwa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Yallawwa

Case brief

What is this about?

What did the court decide?

What the court decided

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