Allowed

Karnataka Gramin Bank v. K Ganesh Kumar

DRT11 Aug 2026OA/2599/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Karnataka Grameena Bank for a Recovery Certificate against the legal heir of a deceased co-borrower and the respondent. Despite the respondent's default and absence, the court found the evidence sufficient, reducing the interest rate to 6% p.a. for agricultural purposes.

What did the court decide?

Recovery Certificate issued for Rs.21,91,290/- with further interest at 6% p.a. (simple) from the filing date till realization, recoverable from respondent's personal assets or schedule property.

Karnataka Gramin Bank versus K Ganesh Kumar — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 10^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.2599/2025

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BETWEEN:

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Karnataka Grameena Bank Saragur Branch Office at Sri. Rama Badavane, Hunsur, Beguru Road Saraguru, Mysuru District – 571121 Rep. by its Branch Manager and Principal Officer In-charge of Branch … APPLICANT

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AND:

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Sri. S Kempe Gowda (Since deceased) Rep. by his legal heir 1(a) Sri. K Ganesh Kumar S/o. Late S Kempe Gowda Aged about 49 years Residing at: Kottegala village and post Saraguru Hobli, Saragur Taluk, Mysore District – 571121

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Srinivasa Murthy H C 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

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OA. No.2599/2025

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seeking issuance of Recovery Certificate against the defendant for Rs.21,91,290/- (Rupees Twenty One Lakh Ninety One Thousand Two Hundred and Ninety only) with 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 late S Kempe Gowda and defendant No.1(a) as a borrowers availed Kisan Credit Card limit of Rs.2,38,000/- for cultivation of agricultural crops on 23.06.2011 and ATL of Rs.2,52,000/-; Rs.1,34,000/- for solar fencing and drip irrigation and Rs.1,18,000/- for purchase of pump set, pump tank and SIT etc., on 27.09.2011.

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It is also the case of the applicant that, in view of the above financed credit facilities, the deceased borrower along with defendant 1(a) 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 defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan account as NPA.

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OA. No.2599/2025

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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 1(a), he failed to appear, resulting the defendant 1(a) being set exparte on 05.03.2026.

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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 A21 and got the same marked in evidence. 8. 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

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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

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tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found

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OA. No.2599/2025

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admissible and are sufficient to prove availment of credit facilities

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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

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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

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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 in view of the OA can be allowed with a reduced interest of 6.00%

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p.a.(simple).

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In the result, OA.No.2599/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.21,91,290/- (Rupees Twenty One Lakh Ninety One Thousand

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Two Hundred and Ninety only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant 1(a) and the defendant 1(a) to the to the extent of

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OA. No.2599/2025

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inheritance of any estate from the deceased co-borrower, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against 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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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendant 1(a) personally and his 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.2599/2025

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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 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 10^th Day of August 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Amith R, 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	Annexure No.
1)	Copy of the Application Cum Appraisal Report for Agricultural loan (KCC) dated 23.06.2011	A01
2)	Copy of the Sanction conveying Letter- Kissan Credit Card dated 30.06.2011.	A02
3)	Copy of Loan Hypothecation Agreement dated 30.06.2011 executed by Sri. S Kempe Gowda & Defendant No.1(a).	A03
4)	Copy of the Letter of Commitment dated 26.06.2014 executed by Defendant No.1(a).	A04
5)	Copy of the Letter of Commitment dated 24.06.2017 executed by Defendant No.1(a).	A05
6)	Copy of the Letter of Commitment dated 28.03.2019 executed by Defendant No.1(a).	A06

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OA. No.2599/2025

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7)	Copy of the Letter of Revival for KCC dated 26.03.2022 executed by Defendant No.1(a).	A07
8)	Copy of the Letter of Revival for KCC dated 19.02.2025 executed by Defendant No.1(a).	A08
9)	Copy of the Application Form cum Appraisal Report for Agricultural Term Loans (ATL) dated 23.06.2011	A09
10)	Copy of the Loan sanction conveying Letter dated 29.07.2011.	A10
11)	Copy of the Loan Hypothecation Agreement (ATL) dated 29.07.2011 executed by Sri. S Kempe Gowda & Defendant No.1 (a).	A11
12)	Copy of the Mortgage deed dated 17.06.2011 executed by Sri. S Kempe Gowda and Defendant No.1 (a).	A12
13)	Copy of the Acknowledgement of security/ Liability from mortgagors dated 14.03.2022 executed by Defendant No.1(a).	A13
14)	Copy of the Letter of Commitment dated 26.06.2014 executed by Defendant No.1(a).	A14
15)	Copy of the Letter of Commitment dated 24.06.2017 executed by Defendant No.1(a).	A15
16)	Copy of the acknowledgment of Liability for ATL dated 16.03.2019 executed by Defendant No.1(a).	A16
17)	Copy of the Letter of Revival for ATL dated 14.03.2022 executed by Defendant No.1(a).	A17
18)	Copy of the Letter of Revival for ATL dated 24.02.2025 executed by Defendant No.1(a).	A18
19)	Copy of the Legal Notice dated 08.07.2025.	A19
20)	Copy of the Statement of Account certified under Bankers’ Book of Evidence Act in respect of KCC Loan account No. 12036130000196.	A20

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8 OA. No.2599/2025

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1. Copy of the Statement of Account certified A21 under Bankers’ Book of Evidence Act in respect of ATL Loan account No. 42036326006311.

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Sd/(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. K Ganesh Kumar

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. K Ganesh Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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