Allowed

Karnataka Gramin Bank v. Sri Krishnappa

DRT27 Aug 2026OA/2638/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's original application for a recovery certificate. Despite the defendant's absence, the court found the bank's claim of Rs. 21,94,756/- proved. The certificate was granted with reduced interest at 6% p.a. simple from the filing date.

What did the court decide?

Issuance of Recovery Certificate for Rs. 21,94,756/- with interest at 6% p.a. (simple) from filing date, enforceable against personal assets and schedule properties.

Karnataka Gramin Bank versus Sri Krishnappa — Money Laundering | 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 Presiding Officer OA.No.2638/2025

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BETWEEN:

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Karnataka Grameena Bank Branch office at: Sira Branch, Sira Taluk, Tumkur District – 572 137 Represented by its Senior Manager Sri. Kiran H N …APPLICANT

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AND:

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Sri. Krishnappa S/o. Dharamada Nayaka Aged about 58 years R/at: Yaradakatte Village, Sira Taluk, Tumkur District – 572 137 ...DEFENDANT

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Counsel on record/appeared for: Applicant : Mrs. Shibaz Khausar Defendant : Ex parte

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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 seeking for issuance of Recovery Certificate against the defendant for Rs 21,94,756/- (Rupees Twenty-One Lakhs Ninety-Four Thousand Seven Hundred and Fifty-Six 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 is availed a

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OA-2638/2025

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KCC loan of Rs. 1,80,000/- (Rupees One Lakhs Eighty Thousand Only) for the purpose of crop production.

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

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It is further contended that, despite availing the credit facility, 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 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 due in the account.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set ex parte on 23.03.2026.

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The applicant had let in evidence through AW-1, who filed Proof

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-13 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

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claim as against the defendant?

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OA-2638/2025

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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 defendant 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 sufficient to prove availment of credit facility as stated in the OA, creation of the security interest and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due are also proved by the above document. 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 are in favour of applicant and hence, this

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

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Taking into consideration the facts that the credit facility is

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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

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

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In the result, OA.No.2638/2025 stands allowed,

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

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21,94,756/- (Rupees Twenty-One Lakhs Ninety-Four Thousand

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OA-2638/2025

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Seven Hundred and Fifty-Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, 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 the schedule properties. 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 defendant personally and his 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 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 of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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OA-2638/2025

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[Dictated to the Stenographer (HS), 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/-

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(T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Sandeep J, S/o Jayaramegowda R, Chief Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhi bits	Date	Particulars
A1	17.09.2004	Loan application for KCC loan with English translation executed by the defendant
A2	21.09.2004	Sanction communication
A3	24.09.2004	Terms regulations and sanction intimation letter with English translation executed by the defendant
A4	24.09.2004	Hypothecation agreement for agricultural advances with English translation executed by the defendant
A5	23.09.2004	Registered simple mortgage deed with English translation
A6	19.09.2007	Acknowledgement of liability executed by the defendant
A7	15.09.2010	Acknowledgement of liability executed by the defendant
A8	11.09.2013	Acknowledgement of liability executed by the defendant
A9	08.09.2016	Acknowledgement of liability executed by the defendant
A10	05.06.2019	Acknowledgement of security/liability from mortgagors executed by the defendant
A11	23.03.2022	Letter of revival executed by the defendant
A12	23.03.2025	Letter of revival executed by the defendant
A13	----------	Statement of account in KCC loan in A/no. 42172357001308 (old a/c no. 13172018096), along with certified
	Witness Exa	mined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Sri Krishnappa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri Krishnappa

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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