Allowed

Karnataka Gramin Bank v. Hanumatharaju S and Others

DRT5 Jun 2026OA/288/2025

Case brief

AI extract

What is this about?

The Tribunal disposed of an OA filed under Section 19 of the RDB Act. Since defendants appeared ex parte, the applicant's evidence regarding loan availment and defaults was accepted. The OA was allowed with reduced interest at 10%, granting a recovery certificate against the defendants and mortgage property.

What did the court decide?

Recovery Certificate to be drawn for aggregate sum of Rs. 22,72,321.83 plus interest at 10% p.a. (simple) from filing date till realization, recoverable from defendants and schedule property.

Karnataka Gramin Bank versus Hanumatharaju S and… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 5^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.288/2025

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BETWEEN:

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Karnataka Gramin Bank Head Office at No.32, Sanganakal Road, Gandhinagar, Ballari-583 103 And interalia it’s Branch Office at, Midigeshi Branch, Madhugiri Taluk, Tumakuru-572133. Represented by its Branch Manager, Sri. Divity Abilash.

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…APPLICANT

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AND:

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Sri Hanumantharaju. S S/o Sannabalegowda, aged about 56 years,

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Sri. Jeevan S/o Hanumantharaju.s Aged about 23 years

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Miss. Jahnavi D/o Hanumantharaju. S Aged about 9years

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All are Residing at, Lakshmipura Village, Midigeshi Hobli, Madhugiri Taluk-57211. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mohamed Afroze Ahamed Defendants : Exparte

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FINAL ORDER

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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. 22,72,321.83/- (Rupees Twenty Two Lakh Seventy Two Thousand Three hundred Twenty One and Paise Eighty Three 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 defendants No.1 along with the deceased borrower Smt. Ramakka have availed the KCC Loan of a sum of Rs. 2,76,000/- (Rupees Two Lakh Seventy six Thousand Only) on 21.09.2012 and Tractor and Trailer Loan of sum of Rs. 5,00,000/- (Rupees Five Lakh Only) on 23.10.2013. Defendant No.1 to No.3 are the legal heirs of the deceased borrower. The 2^nd and 3^rd defendants are the joint owners of the mortgage property.

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with Mortgage Deed Agreement, Sanction Intimation Letter, Letter of Revival. 4. 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 for issuance of Recovery Certificate for the

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amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 12.11.2025.

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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-26 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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i) Whether the applicant had succeeded in proving the OA claim

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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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1. The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put

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forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of Mortgage as claimed by the applicant bank and the defaults committed in the accounts.

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The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this Tribunal find

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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 are availed for education purpose and also that the 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 10.00% (simple).

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In the result, OA.No.288/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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22,72,321.83/- (Rupees Twenty Two Lakh Seventy Two Thousand Three Hundred Twenty One and Paise Eighty Three only) with further interest @ 10.00% p.a. (Simple) from the date of filing OA till the realization, from the defendants, including defendant No.2 and No.3 to the extent of their inheritance of any estate from the deceased borrower Smt. Ramakka after giving credit to all the amount recovered and received during the pendency of the OA and allowed the 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 found sufficient to cover the

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amount due and payable to the applicant bank, the 1^st defendant personally and his other assets and the assets of the defendant No.1 to

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No.3 to extent of her inheritance of any estate from the deceased borrower Late Smt. Ramakka 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

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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

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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

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

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 5^th day of June, 2026].

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Sd/- (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: Posa Mallikarjuna, Branch Manager of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A-1	12.09.2012	Loan Application
A-2	21.09.2012	Terms, Regulations and Sanction Intimation letter executed by Deceased Borrower Smt. Ramakka and 1^stdefendant
A-3	21.09.2012	Mortgage Deed Agreement executed by Deceased Borrower Smt. Ramakka and 1^st defendant
A-4	17.09.2012	Registered mortgage Deed
A-5	12.06.2015	Letter of Commitment executed Deceased Borrower Smt. Ramakka and 1^stdefendant
A-6	10.08.2018	Acknowledgment of liability executed by the 1^stdefendant
A-7	04.05.2018	Acknowledgment of liability executed by the 1^stdefendant
A-8	04.03.2021	Letter of Revival executed by the 1^st defendant
A-9	4.03.2021	Letter of Revival executed by the 1^st defendant
A-10	04.03.2021	Letter of Revival executed by the 1^st defendant
A-11	04.03.2021	Letter of Revival executed by the 1^st defendant
A-12	01.10.2013	Sanction Communication
A-13	23.10.2013	Terms, Regulations and Sanction Intimation Letter executed by Deceased Borrower Smt. Ramakka and 1^stdefendant
A-14	23.10.2013	Mortgage Deed Agreement executed by Deceased Borrower Smt. Ramakka and 1^st defendant
A-15	19.10.2013	Registered Mortgage Deed executed by the defendant
A-16	23.08.2016	Letter of Commitment executed by the 1^st defendant
A-17	30.09.2016	Acknowledgment of liability executed by the 1^stdefendant
A-18	20.08.2018	Acknowledgment of liability executed by the 1^stdefendant

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A-19	16.01.2021	Letter of Revival executed by the 1^st defendant
A-20	16.01.2021	Letter of Revival from Legal Heirs executed by the 1^stdefendant
A-21	03.03.2023	Letter of Revival executed by the 1^st defendant
A-22	03.03.2023	Letter of Revival from Legal Heirs executed by the 1^stdefendant
A-23		The Copy of B-Register Extract of Vehicle bearing Regn. NO.KA-64T-0149
A-24	14.02.2018	The Death Certificate of the Deceased Borrower Smt. Ramakka
A-25		Statement of Account In KCC Loan in A/No. 42235354004221
A-26		Statement of Account In Tractor and Trailer Loan in A/c No. 42235325000113

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Hanumatharaju S and Others

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Hanumatharaju S and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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