DRT allowed applicant bank's request for recovery certificate against joint and several borrowers for defaulted agricultural and dairy loans, setting reduced interest at 6% simple.
Recovery certificate issued for Rs. 38,48,163 with 6% simple interest; respondents jointly, severally and personally liable; proceeds against mortgaged property.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 31st Day of July, 2026
Present: Sri. T. RAJESH Presiding Officer
OA.No.373/2023
BETWEEN:
Karnataka Gramin Bank Branch Office at: Jawaharnagar Branch, Raichur -584101. Represented by its Branch Manager and Principal Officer, Smt. Suvarna Bagoor.
…APPLICANT
AND:
...DEFENDANTS
Counsel on record/appeared for:
Applicant : T.P. Muthanna Defendants : Exparte
2 373/2023
FINAL ORDER
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and consequentially turning the loan accounts as NPA.
as against the defendants?
ii) What order are to be passed?
Both these issues are gone into and decided together.
the applicant remains uncontroverted and undisputed. The evidences put
4 373/2023
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. 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.
a. Rs.12,88,130 /- with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant No. 1 & 2 under Loan Account No. 40673354003119 ;
5 373/2023
b. Rs.10,29,091/- with further interest of 6.00% p.a.(simple) from the
date of filing OA till the realization from the defendant No.1 & 2 under Loan Account No. 67315326016117;
c. Rs.15,30,942/- with further interest of 6.00% p.a.(simple) from the
date of filing OA till the realization from the defendant No.1 & 3 under Loan Account No. 67315307028317 from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. Schedule Properties to the OA be the schedule to the recovery certificate.
ii) If the sale proceeds are not found sufficient to cover the
amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for the amounts due under the loan accounts.
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.
iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of in terms
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of this final order.
14. Communicate a copy of the order to the parties concerned in terms
of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)
Rules, 1993.
[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31st Day of July, 2026].
Sd/-
(T. RAJESH) PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Dinesh Kumar Pandey, Manager and Authorized Officer of the applicant Bank
Exhibits on the part of the Applicant:
| Annexure | List of Documents |
|---|---|
| A1 | Copy of the PKKCC Loan Application cum Sanction dated 24.05.2017 |
| A2 | Copy of the Request for Agricultural Overdraft Facilities /Pragathi Krishna Credit Card dated 29.05.2017 |
| A3 | Copy of the Memorandum of Agreement for Agricultural Loans dated 29.05.2017 |
| A4 | Copy of the Simple Mortgage Deed dated 29.05.2017 registered at the Office of the Sub Registrar Raichur vide Doc. No. RCR-1- 02520- 2017-18, CD No. RCRD334 |
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| A5 | Copy of the Application Cum Sanction dated 25.05.2017 |
|---|---|
| A6 | Copy of the Memorandum of Agreement for Agricultural Loans dated 29.05.2017 |
| A7 | Copy of the Simple Mortgage Deed dated 29.05.2017 registered at the office of the Sub Registrar Raichur vide Doc. No. RCR-1- 02531- 2017-18, CD No. RCRD334 |
| A8 | Copy of the Application Cum Sanction dated 21.09.2017. |
| A9 | Copy of loan sanction memorandum dated 26.09.2017 |
| A10 | Copy of the Pronote and Take Delivery Letter to DPN dated 27.09.2017. |
| A11 | Copy of Authorization Letter dated 27.09.2017 |
| A12 | Copy of Vendor Receipt dated 27.09.2017 |
| A13 | Copy of the Memorandum of Agreement for Agricultural Loans dated 27.09.2017. |
| A14 | Copy of the Simple Mortgage Deed dated 27.09.2017 registered at the office of the Sub Registrar Raichur vide Doc. No. RCR-1- 07612- 2017-18, CD No. RCRD347 |
| A15 | Copy of the Letter of Revival dated 02.03.2020 |
| A16 | Copy of the Letter of Revival dated 02.03.2020 |
| A17 | Copy of the Letter of Revival dated 09.07.2020 |
| A18 | Copy of the Letter of Revival dated 09.07.2020 |
| A19 | Copy of the Legal Notice dated 16.04.2022 |
| A20 | Copy of the Legal Notice dated 16.04.2022 |
| A21 | Copy of the Legal Notice dated 16.04.2022 |
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| A22 | Copy of the Statement of Account certified under Bankers’ Book of Evidence Act in respect of PKKCC Account No. 40673354003119 |
|---|---|
| A23 | Copy of the Statement of Account certified under Bankers’ Book of Evidence Act in respect of Loan Account No. 67315326016117. |
| A24 | Copy of the Statement of Account certified under |
| Bankers’ Book of Evidence Act in respect of Dairy Loan Account No. 67315307028317. |
Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:
-Nil -
-Nil –
Sd/- (T. RAJESH)
PRESIDING OFFICERs
2 issues framed by the court
Whether the applicant succeeded in proving the OA claim as against the defendants?
What order is to be passed?
1 provisions across 1 enactments
Karnataka Gramin Bank Branch Office at Jawaharnagar Branch, Raichur
Sri. Muddanna S/o Sri. Kappanna
Sri. G Bhimanna S/o hanumanthappa
Sri. Yankanna S/o Hanumantha
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
