Allowed

Karnataka Gramin Bank v. K B Annegowda

DRT4 Mar 2026OA/353/2024

Case brief

AI extract

What is this about?

This DRT allowed a Recovery Certificate application against three defendants for loans of Rs. 32.21 lakhs. As defendants appeared ex parte, the court accepted uncontroverted bank evidence, reduced interest to 6% p.a., and authorized recovery against movable/immovable properties.

What did the court decide?

Recovery certificate directed for Rs. 32,21,605.46 with 6% simple interest from filing, recoverable from defendants jointly and severally via schedule properties.

Karnataka Gramin Bank versus K B Annegowda — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 04^th Day of March, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.353/2024

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BETWEEN:

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Karnataka Gramin Bank Head office at: Head office at: Gandhinagar, Ballari, Karnataka – 583 103 Branches at: Margur shivara branch, Channarayapatna taluk, Hassan district – 573 111

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Represented by its Branch Manager

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Mr. Kumara T …APPLICANT

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AND:

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Mr. K B Annegowda S/o. late boregowda Aged about 53 years

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Mr. K A Naveen S/o. K B Annegowda Aged about 24 years

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Mr. K A Chethan S/o. K B Annegowda Aged about 22 years

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All residing at: R/o. Kakkihalli Village, Kemblu Post, Begur Hobli, Channarayapatna Taluk, Hassan District – 573 111 ...DEFENDANTS

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OA-353/2024

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendants : Ex parte

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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 for issuance of Recovery Certificate against the defendants for Rs. 32,21,605.46/- (Rupees Thirty-Two Lakhs Twenty-One Thousand Six Hundred and Five and Paisa Forty-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 defendants are availed the following credit facilities:

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Term loan of Rs. 8,00,000/- (Rupees Eight Lakhs Only) under the ATL-gold card scheme.

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Converted loan of Rs. 7,42,000/- (Rupees Seven Lakhs FortyTwo Thousand Only) under Kisan Credit card scheme.

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

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

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OA-353/2024

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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 ex parte on 04.03.2026.

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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 A-1 to A-22 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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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 facilities 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-353/2024

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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 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 facilities are 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.353/2024 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 32,21,605.46/- (Rupees Thirty-Two Lakhs Twenty-One Thousand Six Hundred and Five and Paisa Forty-Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and 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

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amount due and payable to the applicant bank, the defendants

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OA-353/2024

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jointly, severally and personally and their assets are liable for all such

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amounts due under the loan accounts.

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iii) 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

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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

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the Open Court, this the 04^th Day of March, 2026].

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Sd/-

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(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 Mr. Chethan Kumar D, S/o. Devaraje Gowda, Manager, of

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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-353/2024

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A1	18.12.2015	Simple mortgage deed registered as document no. NUG-1-01849-2015-16, at the office of sub- registrar, Nuggehalli
A2	19.12.2015	Application for agricultural term loan
A3	19.12.2015	Agreements, provisions and sanction conveying letter
A4	19.12.2015	Hypothecation agreement
A5	07.08.2020	Letter of revival
A6	11.07.2023	Letter of revival
A7	04.03.2015	Application for agricultural loan
A8	14.03.2016	Simple mortgage deed registered as document no. NUG-1-02684-2015-16, at the office of sub- registrar, Nuggehalli
A9	16.03.2016	Hypothecation agreement
A10	16.03.2016	Agreement/provisions/sanction for crop loan under kisan credit card scheme
A11	07.08.2020	Letter of revival
A12	11.07.2023	Letter of revival
A13 & A14	13.07.2023	Two legal notices
A15	-------	Two postal receipts
A16 & A17	------	Two acknowledgement cards served
A18	-------	Old bank statement loan a/c. no. 85035721099
A19	-------	Old bank statement loan a/c. no. 85037177178
A20	--------	Old bank statement loan a/c. no. 12097130000221
A21	--------	Bank statement a/c no. 42097326000315
A22 Witness	-------- Examined fo	Bank statement a/c no. 42097354028021 r the Defendants: -Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. K B Annegowda

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. K B Annegowda

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

Coram

Case details

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