Allowed

Karnataka Gramin Bank v. Adeppa

DRT27 Apr 2026OA/378/2024

Case brief

AI extract

What is this about?

On 23.10.2024, the Debt Recovery Tribunal allowed Original Application No. 378/2024 filed by Karnataka Grameena Bank against borrowers and co-obligants. The Tribunal, noting the defendants' ex parte status and the bank's prima facie case, issued a Recovery Certificate for Rs. 51,58,894/- at 6% p.a. simple interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 51,58,894/- @6% p.a. simple interest until realization against defendants jointly and severally.

Karnataka Gramin Bank versus Adeppa — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 27^th Day of April, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.378/2024

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BETWEEN:

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Karnataka Grameena Bank Branch office at: Pothnal Branch- 781, Raichur Taluk, Raichur District- 584143

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…APPLICANT

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AND:

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Sri. Adeppa S/o. Amarappa Since deceased by his legal heirs

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1(a). Smt. Sangamma W/o. Late Adeppa Major,

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1(b). Sri. Shekarappa S/o. Late Adeppa Major,

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1(c). Sri. Amaresh S/o. Late Adeppa

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Sri. Chanabasappa Sajjan S/o. Basaanna Sajjan Major,

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Sri. Basavaraj S/o. Gudappa Major

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OA 378/2024

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All are R/at: Tadkal Village, Manvi Taluk, Raichur District- 584138

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant Defendants

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: Nandish NJ : Exparte

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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 issuance of Recovery Certificate Rs.51,58,894/- (Rupees fifty one lakh fifty eight thousand eight hundred ninety four 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 defendant No.1 was the deceased borrower leaving behind defendants No.1(a) to 1(c)

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as his legal Heirs. The defendants No.2 and 3 as the co-obligants availed the following credit facilities from the applicant bank:-

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I. Agricultural Loan of a sum of Rs.4,00,000/- (Rupees Four Lakh Only) and

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II. KCC loan limit of Rs.6,00,000/- (Rupees six lakh Only).

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It is also the case of the applicant that, in view of the above

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OA 378/2024

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amount financed, the defendants executed necessary loan documents along with sanction memorandum, simple mortgage deed, and letters of revival in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults 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 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 23.10.2024.

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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-28 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

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OA 378/2024

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evidence and the 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

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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

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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

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admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this

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OA 378/2024

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Tribunal find both these issues in favour of applicant and hence

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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

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are availed by defendants for agricultural purpose and also that

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OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a. (Simple).

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In the result, OA.No.378/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.51,58,894/- (Rupees fifty one lakh fifty eight

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thousand eight hundred ninety four only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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No.2 & 3 jointly severally and personally after giving credit to all

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the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against

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the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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OA 378/2024

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No.2 & 3 are jointly severally and personally and their other

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assets are liable to be proceeded against for the balance amount.

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iii) Being the legal heirs of Defendant No.1, the defendants No.1(a) to 1(c) are liable to the extent of estate inherited by the deceased borrower Late Sri. Adeppa.

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iv) 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 receipt of the order.

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

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in terms of 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 27^th day of April, 2026].

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PRESIDING OFFICER

Sd/ (T. RAJESH)

OA 378/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Kindinti Ramanjineyulu, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	04.07.2009	Crop loans sanction memorandum executed by D1
A2	14.07.2009	Memorandum of agreement for agricultural loans executed by D1 and 2
A3	09.07.2009	Simple mortgage deed for KCC facility to Agricultural executed by D1 in favor of applicant. The document is registered as MNV-1-2435-2009-10 in Book-1 stored in the office of Sub-registrar, Manvi
A4 to A12	11.05.2012 05.05.2015 31.03.2018 23.09.2020 18.07.2023	Letters of revival executed by D1, 1 (a), 1(B), 1 (c) and D2
A13	04.01.2021	Acknowledgement of security from legal heirs of deceased mortgagor
A14	23.08.2010	Sanction memorandum executed by D1
A15	23.09.2010	Memorandum of agreement for agricultural loans executed by D1 and 3
A16	21.09.2010	Simple mortgage deed executed by D1 in favor of the applicant. The document is registered No.MNV-1-04519-2010-11 in Book-1 stored in CD No.MNVD69 in office of Sub Registrar, Manvi
A17	21.03.2013	Letters of Revival executed by D1, 1a, 1b, 1c and D3
A18 and A19	26.02.2016	Letters of Revival executed by D1, 1a, 1b, 1c and D3
A20 & 21	01.10.2018	Letters of Revival executed by D1, 1a, 1b, 1c and D3

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OA 378/2024

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A22 & A23	25.07.2020	Letters of Revival executed by D1, 1a, 1b, 1c and D3
A24 & A25	18.07.2023	Letters of Revival executed by D1, 1a, 1b, 1c and D3
A26	14.08.2023	Legal notice
A27 & A28		Certified statement of account 2 nos along with certificate

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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(T. RAJESH)

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PRESIDING OFFICER

Karnataka Gramin Bank v. Adeppa

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Adeppa

Case brief

What is this about?

What did the court decide?

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