Allowed

Karnataka Vikas Grameena Bank v. Mahaveer Dhareppa Nandeshwar

DRT28 Jan 2026OA/363/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application under sec 19 RDB Act 1993 for issuance of a recovery certificate against defaulting borrowers. The court adjusted interest to 6% p.a. while granting cost to the applicant.

What did the court decide?

Issuance of Recovery Certificate for Rs.76,38,914/- with 6% simple interest p.a., to be recovered from respondents jointly and severally by sale of schedule property or other assets.

Karnataka Vikas Grameena Bank versus Mahaveer Dhareppa… — Execution and Attachment | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.363/2025

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BETWEEN:

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Karnataka Grameena Bank Shirahatti Branch, Athani Taluk, Belgaum District-591304 Rep. by its Branch Manager Sri. Sanjay Ashok Ganiger

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… APPLICANT

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AND:

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Sri. Mahaveer Dhareppa Nandeshwar S/o. Dhareppa Nandeshwar Aged about 67 years,

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Residing at: Shirahatti Village, Athani Taluk, Belgaum District-591304

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Sri. Babu Parappa Yaligouda S/o. Parappa Yaligouda Aged about 57 years Residing at: Shirahatti Village, Athani Taluk, Belgaum District-591304

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Sri. Balasab Tavanappa Nadeshwar S/o. Tavanappa Nadeshwar Major by age, Residing at: Shirahatti Village, Athani Taluk, Belgaum District-591304

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OA. No.363/2025

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Sri. Kiran Kumar Mahaveer Nandeshwar S/o. Mahaveer Nandeshwar Major by age, Residing at: Shirahatti Village, Athani Taluk, Belgaum District-591304

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Sri. Chandrakant Mahaveer Nandeshwar S/o. Mahaveer Nandeshwar Major by age, Residing at: Shirahatti Village, Athani Taluk, Belgaum District-591304

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Sri. Arjuna Mahaveer Nandeshwar S/o. Mahaveer Nandeshwar Major by age, Residing at: Shirahatti Village, Athani Taluk, Belgaum District-591304 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Vijay S Defendants : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.76,38,914/- (Rupees Seventy Six Lakh Thirty Eight Thousand Nine Hundred and Fourteen 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 defendants availed

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Term loan facility of Rs.5,00,000/- for the purpose of Undertaking

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OA. No.363/2025

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Farm Development; Crop loan facility of Rs.7,50,000/- for the purpose of sugarcane crop and Agricultural Term loan facility of Rs.13,50,000/- for the purpose of laying pipeline.

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

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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 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 19.09.2025.

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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 A1 to A51 and got the same marked in evidence.

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OA. No.363/2025

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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: 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 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 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

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issues raised in this manner, this Tribunal is of the view that OA is

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OA. No.363/2025

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liable to be allowed.

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Taking into consideration the facts that the credit facilities

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were availed for agricultural purpose and also that OA claim is

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arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00% p.a.(simple).

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In the result, OA.No.363/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.76,38,914/- (Rupees Seventy Six Lakh Thirty Eight Thousand Nine Hundred and Fourteen only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization

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from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed

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the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule property. 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

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the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable

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OA. No.363/2025

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for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of

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with 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 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of January 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: Sri. Sanjay Ashok Ganiger, Branch Manager of the applicant bank.

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OA. No.363/2025

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	28.07.2010	Loan application
A2	09.09.2010	Loan sanction letter
A3	16.09.2010	Consideration receipt for Rs3,00,000/- executed by defendant No.1
A4	21.09.2010	Consideration receipt for Rs.2,00,000/- executed by defendant No.1
A5	16.09.2010	Agreement for agricultural advances executed by defendant No.1
A6	16.09.2010	Guarantee agreement executed by defendant No.2
A7	14.09.2010	Simple mortgage deed executed by defendant No.1
A8	23.01.2018	Renewal letter executed by defendant No.1
A9	12.09.2018	Acknowledgment of debt executed by defendant No.1 and 2
A10	02.03.2021	Acknowledgment of debt executed by defendant No.1 and 2
A11	13.05.2024	On Demand Promissory Note along with Revival letter for Time Barred Debt executed by defendant No.1 and 2
A12	22.06.2024	Legal notice issued by the applicant bank to the defendants
A13	-	Statement of account
A14	03.09.2013	Loan application

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OA. No.363/2025

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A15	23.09.2013	Loan sanction letter
A16	26.09.2013	Loan sanction letter
A17	26.09.2013	Agreement for agricultural advances executed by defendant No.1
A18	26.09.2013	Guarantee agreement executed by defendant No.3
A19	16.04.2007	Simple mortgage deed executed by defendant No.1
A20	16.07.2012	Simple mortgage deed executed by defendant No.1
A21	24.09.2013	Simple mortgage deed executed by defendant No.1
A22	23.09.2016	Acknowledgment of debt executed by defendant No.1
A23	23.09.2016	Acknowledgment of debt executed by defendant No.3
A24	22.11.2017	Renewal letter executed by defendant No.1
A25	20.09.2019	Acknowledgment of debt executed by defendant No.1
	31.03.2021	Acknowledgment of debt executed by
A26		defendant No.1 in favour of the applicant bank
	13.05.2024	On Demand Promissory Note along
A27		Revival letter for time barred debt executed by defendant No.1
A28	22.06.2024	Legal notice issued by the applicant bank

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OA. No.363/2025

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A29	-	Statement of account
A30	04.03.2015	Loan application
A31	31.03.2015	Loan sanction letter
A32	31.03.2015	Loan sanction letter
A33	31.03.2015	Consideration receipt for Rs.84,528/-
A34	31.03.2015	Consideration receipt for Rs.10,38,384/-
A35	18.05.2015	Consideration receipt for Rs.1,50,000/- executed by defendant No.1
A36	28.05.2015	Consideration receipt for Rs.37,588/- executed by defendant No.1
A37	11.06.2015	Consideration receipt for Rs.39,500/- executed by defendant No.1
A38	31.03.2015	Agreement for agricultural advances executed by defendant No.1
A39	31.03.2015	Guarantee agreement executed by defendant No.3
A40	30.03.2015	Simple mortgage deed executed by defendant No.1
A41	08.03.2018	Renewal letter executed by defendant No.1
A42	31.03.2019	Acknowledgment of debt executed by defendant No.1 and 3
A43	29.03.2022	Acknowledgment of debt executed by defendant No.1
A44	02.06.2023	Registered notice issued by the applicant bank

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OA. No.363/2025

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A45	02.06.2023	Registered notice applicant bank	issued	by	the
A46	02.06.2023	Registered notice applicant bank	issued	by	the
A47	22.06.2024	Legal notice issued bank	by the	app	licant
A48	22.06.2024	Legal notice issued to 6 by the applicant	to defen bank	dant	No.4
A49	-	Served acknowledgm	ents
A50	-	Statement of accoun	t
A51	-	RTC Extract

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Vikas Grameena Bank v. Mahaveer Dhareppa Nandeshwar

Case brief

What is this about?

What did the court decide?

Karnataka Vikas Grameena Bank v. Mahaveer Dhareppa Nandeshwar

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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