Allowed

Karnataka Gramin Bank v. Meer Hussain Sab Dead by Lrs Taher Pasha

DRT22 May 2026OA/2644/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of RDB Act, 1993 for issuance of Recovery Certificate. The debt was to the legal heirs of a deceased borrower. The Tribunal reduced interest to 6% p.a. and directed recovery from the personal assets of the individual defendant and legal heirs to the extent of inherited estate.

What did the court decide?

Issuance of Recovery Certificate for Rs.49,38,543/- with interest at 6% p.a. personally against Defendant No.2 and legal heirs to the extent of inherited estate.

Karnataka Gramin Bank versus Meer Hussain Sab Dead… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 22^nd Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2644/2024

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BETWEEN:

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Karnataka Grameena Bank Branch office at: Kalmala Branch, Lingsugur Road, Raichur Taluk and District Karnataka- 584136

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…APPLICANT

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AND:

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Sri. Meer Hussain Sab Deceased by LRs 1(a). Sri. Taher Pasha S/o Late Meer Hussain Sab R/at: Raghunathna Halli Village, Raichur Taluk & District-584101

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1(b). Sri. Jilani Pasha S/o. Late Meer Hussain Sab R/at: Raghunathna Halli Village, Raichur Taluk & District-584101

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Sri. Mohammed Rafiq S/o. Khasim Sab R/at: Raghunathna Halli Village, Raichur Taluk & District-584101

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : G. Srinivasan Advocate Defendants : Exparte

OA 2644/2024

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 for Rs.49,38,543/- (Rupees forty nine lakh thirty eight thousand five hundred forty three only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendant No.1 was the deceased borrower with Defendants No.1(a) and 1(b) as his legal heirs. They availed the following credit facilities from the applicant bank:-

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I. KCC Loan of a sum of Rs.25,000/- (Rupees twenty five thousand Only),

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II. FML loan limit of Rs.5,83,000/- (Rupees Five lakh eighty three thousand Only), and

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III. FML Credit Loan limit of Rs.4,90,000 /- (Rupees four lakh ninety thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with sanction memorandum, simple mortgage deed and letters of revival in favor of the applicant bank.

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OA 2644/2024

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults 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 defendants, they failed to appear, resulting the defendant being set exparte on 21.08.2025.

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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-27 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 the proof affidavit.

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The following issues arise for consideration in this matter:

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OA 2644/2024

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i) Whether the applicant had succeeded in proving the

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OA claim 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

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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 hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this Tribunal 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

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OA 2644/2024

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are availed by defendants for agricultural purpose and also that

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OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a. (Simple).

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In the result, OA.No.2644/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.49,38,543/- (Rupees forty nine lakh thirty eight

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thousand five hundred forty three only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant

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No.2 personally after giving credit to all the amount recovered

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and received during the pendency of the OA and allowed the

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same to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendant

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No.2 personally and his other assets are liable to be proceeded against for the balance amount.

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(iii) Being the legal heirs of deceased borrower Late Meer

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OA 2644/2024

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Hussain Sab, the defendants No.1(a) and 1 (b) are liable to the

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extent of estate inherited by the deceased borrower.

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iv) The applicant bank is allowed cost of the proceedings

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

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in terms of 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 22^nd day of May, 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: A Suresh Babu, Branch Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.

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OA 2644/2024

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A1	18.09.2007	Agricultural cash credit KCC-OD
A2 & A3	18.09.2007	Original request for Agri OD under KCC memorandum of agreement for agricultural loans
A4 to A9	23.09.2009 21.12.2011 27.09.2014 13.09.2017 19.03.2019 09.03.2022	Original Revival
A10 A and A10 B	22.02.2008	Original agricultural term loan application
A11 to A13	08.03.2008 04.04.2008	Original sanction memorandum loan sanction conveying letter and memorandum of agreement for agricultural loans
A14	25.03.2008	Original simple mortgage
A15 to A22	25.02.2011 04.12.2013 04.12.2013 05.11.2016 02.11.2019 16.08.2022 16.08.2022	Original letter of revival. Acknowledgement of security
A23	11.04.2008	Copy of Form B extract
A24 and A25	07.10.2023	Office copy of 2 legal notice with RPAD receipt
A26 and A27		True extract of loan account statement with certificate under Banker’s Book of Evidence Act.

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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-Nil -

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Sd/

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Meer Hussain Sab Dead by Lrs Taher Pasha

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Meer Hussain Sab Dead by Lrs Taher Pasha

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

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Case details

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