Allowed

Karnataka Gramin Bank v. Sri Suresh Naik

DRT31 Jul 2026OA/2955/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Karnataka Grameena Bank seeking a Recovery Certificate. The Tribunal found the debt, loan documents, and defaults proved due to defendants appearing ex parte. It granted recovery with limited interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 36,59,851.20 with interest at 6% p.a. simple against defendants from inheritance of mortgagor and mortgage property.

Karnataka Gramin Bank versus Sri Suresh Naik — Execution and Attachment | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.2955/2025

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BETWEEN:

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Karnataka Grameena Bank Branch office at: Deodurga Branch, Deodurga Taluk, Raichur District – 584 111

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Represented by its Branch Manager Sri. Basavaraj L Patil …APPLICANT

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AND:

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Sri. Suresh Naik S/o. late Venkoba Aged about 42 years The borrower Sri. Venkoba Died. Hence Suresh Naik is the Legal Heir of the deceased Venkoba

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Sri. Hanumappa S/o. late Narasangappa Aged about 45 years

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Sri. Amaranna Gouda S/o. Thimmana Gouda Aged about 50 years All are residing at: Gourampet Village, Deodurga Taluk, Raichur District – 584 111 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Mohamed Afroze Ahamed Defendants : Ex parte

OA-2955/2025

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs 36,59,851.20/- (Rupees Thirty-Six Lakhs Fifty-Nine Thousand Eight Hundred and Fifty-One and Paisa Twenty 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 1^st defendant is the legal heir of the deceased borrower. The Late borrower Sri. Suresh Naik & defendant no.2 availed an agricultural term loan of Rs. 3,52,000/(Rupees Three Lakhs Fifty-Two Thousand Only) for the purchase of tractor.

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The deceased borrower executed necessary loan document in favour of the applicant bank as security for the due repayment of the loan, interest, cost and charges. The Late borrower Sri. Suresh Naik & Defendant no.2 had also executed Registered Mortgage Deed dated 16.03.2004.

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It is further contended that, despite availing the credit facility, 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 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

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OA-2955/2025

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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 ex parte on 23.07.2026.

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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 A-1 to A-20 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 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 remains unrebutted as defendants 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 defendants and the claim of the amount

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OA-2955/2025

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

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In the result, OA.No.2955/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 36,59,851.20/- (Rupees Thirty-Six Lakhs Fifty-Nine Thousand Eight Hundred and Fifty-One and Paisa Twenty Only) with further interest

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@6.00 % p.a. (simple) from the date of filing OA till the realization, from the 1^st defendant, from the defendants no. 2 & 3, to the extent of their inheritance of any estate form the deceased borrower, Sri. Suresh Naik, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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OA-2955/2025

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ii) If the sale proceeds are not found sufficient to cover the

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liability, the defendants to the extent of their inherited form the

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deceased Sri. Suresh Naik is liable to the proceeds against for the

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balance amount.

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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

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and transferred to Recovery for execution.

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

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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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 31^st Day of July, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA-2955/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Basavaraj L Patil, S/o. Lingaraja, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	10.03.2004	Appraisal report-purchase of tractor/power tiller/ farm machinery executed by the deceased borrower Sri. Venkoba and 2^nddefendant
A2	12.03.2004	Sanction Memorandum
A3	18.03.2004	Hypothecation agreement to be obtained for tractors, pump sets and animal drawn carts executed by the deceased borrower Sri. Venkoba and 2^nddefendant
A4	16.03.2004	Registered Simple Mortgage deed executed by the deceased borrower Sri. Venkoba and 2^ndDefendant
A5	06.03.2007	Letter of revival executed by the deceased borrower Sri. Venkoba and 2^ndand 3^rddefendants
A6	20.11.2009	Letter of revival executed by the 2^nddefendant
A7	20.11.2009	Letter of revival executed by the 3^rddefendant
A8	20.11.2009	Letter of revival executed by the 1^stdefendant
A9	26.07.2012	Letter of revival executed by the 2^nd& 3^rddefendants
A10	26.07.2012	Letter of revival executed by the 1^stdefendant
A11	26.05.2015	Letter of revival executed by the 2^nd& 3^rddefendants
A12	26.05.2015	Letter of revival executed by the 2^nd& 3^rddefendants
A13	20.05.2018	Letter of revival executed by the 1^stdefendant
A14	20.05.2018	Letter of revival executed by the 2^nd& 3^rddefendants
A15	15.03.2021	Letter of revival executed by the 1^stdefendant
A16	10.01.2024	Letter of revival executed by the 1^stdefendant
A17	21.01.2016	Acknowledgement of Security/liability from the legal heirs of deceased mortgagor executed by the 1^st defendant
A18	21.01.2016	Acknowledgement of security/liability from mortgagors executed bythe 2^nddefendant

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OA-2955/2025

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A19	15.07.2004	Xerox Copy of the RC book in respect to the tractor issued by RTO Raichur, vide bearing Regn no. KA-36- TA-8961, which stands in the name of deceased borrower Sri. Venkoba and the same is hypothecation in favour of the applicant bank
A20	---------	Statement of account in farm machinery loan in A/no. 59115325000303(old A/c no. 2003000003)

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants:

-Nil -

Sd/-

(T. RAJESH)

PRESIDING OFFICER

Karnataka Gramin Bank v. Sri Suresh Naik

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri Suresh Naik

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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