Allowed

Karnataka Gramin Bank v. Smt Sugamma

DRT27 Aug 2026OA/2930/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's Original Application for a Recovery Certificate. The court noted the defendants were absent and the evidence was uncontradicted. The award was granted with interest reduced to a simple rate of 6% p.a. as the loan was for agricultural purposes.

What did the court decide?

Allowed recovery of Rs.21,26,732.85 plus interest at 6% p.a. from date of filing, against defendants personally and via recovery certificate on schedule properties.

Karnataka Gramin Bank versus Smt Sugamma — Execution and Attachment | 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

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OA. No.2930/2025

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BETWEEN:

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Karnataka Grameena Bank Deodurga Branch, Deodurga Taluk, Raichur District-584111.

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…APPLICANT

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AND:

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Smt.Sugamma

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W/o.Basavaraj Reddy

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Sri.Channabasava S/o.Virupana Gouda

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Both are Residing at:

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Anchesugur Village, Deodurga Taluk, Raichur District-584111.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sibaz Khausar Defendants : Exparte

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2 OA No.2930/2025

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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 for seeking issuance of Recovery Certificate against the defendants for Rs.21,26,732.85/- (Rupees Twenty-One Lakhs Twenty-Six Thousand Seven Hundred Thirty-Two and Paisa Eighty-Five Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendant No.1 availed a sum of Rs.3,50,000/- (Rupees Three Lakh Fifty Thousand Only) for the purpose KCC Loan-I.

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The Defendant No.1 availed a sum of Rs.2,00,000/- (Rupees Two Lakh Only) for the purpose Agriculture Term Loan-II.

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The Defendant No.1 availed a sum of Rs.4,00,000/- (Rupees Four Lakh Only) for the purpose KCC Loan-III. In Total Aggregate the Defendant availed a Loan of Rs.9,50,000.00 (Rupees Nine Lakhs Fifty Thousand Only). The 2^nd Defendant is the Co-Obligant to all the Loans availed by the 1^st Defendant.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents, being owner of the schedule properties. Apart from the creation of security interest by way of mortgage, over the Schedule properties

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3 OA No.2930/2025

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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 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 defendants, they failed to appear, resulting the defendants being set exparte on 23.03.2026.

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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 A18 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 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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4 OA No.2930/2025

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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 forth by the applicant were found admissible and are sufficient to prove availment of credit facility 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 defendants 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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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 facility was 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% p.a.(simple).

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In the result, OA.No.2930/2025 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.21,26,732.85/- (Rupees Twenty-One Lakhs Twenty-Six Thousand Seven Hundred Thirty-Two and Paisa Eighty-Five Only) along with current and future interest 6% from the date of filing the application till the date of realization, from the Defendants, personally after giving credit to all

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the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered by proceeding against the schedule properties. 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

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amount due and payable to the applicant bank, the defendants and their other assets are liable for all such amounts due in 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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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 (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August 2026].

Sd/-

6 OA No.2930/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.Basavaraj L Patil, Chief Managar of the applicant bank.

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Sl. No	Description of Documents	Date	Exhibits Number
1.	Application form cum appraisal report for PKKCC loan executed by the 1^stand 2^nd Defendants	08.09.2017	A1
2.	Memorandum of Agreement for Agricultural Loans executed by the 1^st2^ndDefendants	08.09.2017	A2
3.	Registered Simple Mortgage Deed executed by the 1^stDefendant	07.09.2017	A3
4.	Letter of Revival executed by the 1^stand 2^nd Defendants	20.07.2020	A4
5.	Letter of Revival executed by the 1^stand 2^nd Defendants	03.04.2023	A5
6.	Application form cum appraisal report for Agricultural Term Loan executed by the 1^st and 2^ndDefendants	19.10.2017	A6
7.	Memorandum of Agreement for Agricultural Loan executed by the 1^stand 2^ndDefendants	19.10.2017	A7
8.	Registered Simple Mortgage Deed executed by the 1^stDefendant	17.10.2017	A8
9.	Letter of Revival executed by the 1^stand 2^nd Defendants	20.07.2020	A9
10.	Letter of Revival executed by the 1^st2^nd Defendants	03.04.2023	A10
11.	Application form cum Appraisal Report for PKKCC Loan executed by the 1^stand 2^nd Defendants	21.10.2017	A11
12.	Memorandum of Agreement for Agricultural Loans executed by the 1^st2^ndDefendants	21.10.2017	A12

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7 OA No.2930/2025

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13.	Registered Simple Mortgage Deed executed by the 1^stDefendant	17.10.2017	A13
14.	Letter of Revival executed by the 1^stand 2^nd Defendants	20.07.2020	A14
15.	Letter of Revival executed by the 1^stand 2^nd Defendants	03.04.2023	A15
16.	Statement of Account in KCC Loan-I in A/c No.40591354028419 (Old A/c No.10591131011979)		A16
17.	Statement of Account in Agricultural Term Loan-II in A/c No.59115315029817		A17
18.	Statement of Account in KCC Loan-III in A/c No.10591131012835		A18

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Smt Sugamma

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Smt Sugamma

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

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