Allowed

Punjab National Bank v. Kadirappa

DRT27 Mar 2026OA/402/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application for issuance of a Recovery Certificate against defaulting borrowers for an agricultural term loan, modifying the interest rate to 6% simple per annum.

What did the court decide?

Recovery Certificate issued for Rs. 20,55,636 with interest at 6% p.a. (simple) from filing date; recovery from schedule property and jointly/severally against defendants' assets.

Punjab National Bank versus Kadirappa — 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 27^th Day of March, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.402/2023

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BETWEEN:

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Punjab National Bank, Circle Sastra Bangalore, Raheja Towers First Floow, 26-27, M.G.Road, Bangalore- 560001, Represented by its Chief Manager, Sri.Chandrajeet Kumar.

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…APPLICANT

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AND:

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Sri. Kadirappa, Aged about 69 years, Son of Late Byrappa.

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Sri. Muniraju, Major, Son of Sri. Kadirappa.

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Smt. Seethamma,

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Major, Wife of Sri. Kadirappa.

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Sri. Manjunatha,

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Major, Son of Sri. Kadirappa.

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Sri. Gopala Krishna,

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Major, Son of Sri. Kadirappa.

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All are residing at, Vontoor Village, Bashettahalli hobli,

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OA 402/2023

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Shidlaghatta Taluk, Chikkaballapura District, Pin- 561205.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Ramesh Kumar K Defendants : 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 against the defendants for Rs. 20,55,636.00 (Rupees Twenty Lakh Fifty Five Thousand Six Hundred Thirty 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 availed a sum of Rs. 18,00,000.00 (Rupees Eighteen lakh Only) for term loan towards working capital requirement for facility for construction of polyhouse structure and cultivation of colored capsicum crops.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with agreement for hypothecation, agreement of guarantee and deed of mortgage.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment

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OA 402/2023

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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, summons the defendants, they failed to appear, resulting the defendants being set exparte on 08.02.2024.

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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-18 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

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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

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the applicant remains uncontroverted and undisputed. The evidences put

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OA 402/2023

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forth by the applicant were found admissible and are sufficient to prove

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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 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 findings arrived herein above, the Tribunal find both these issues 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

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availed for Agriculture purpose and also that the OA claim is 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% (simple).

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In the result, OA.No.402/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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20,55,636.00 (Rupees Twenty Lakh Fifty Five Thousand Six Hundred Thirty Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & 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. Properties schedule to the OA be

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OA 402/2023

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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 jointly,

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severally & personally and their assets are liable for the amounts due

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under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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 and

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transferred to Recovery for execution.

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

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of this final order.

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Communicate a copy of the order to the parties concerned in terms

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

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of March, 2026].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 – Vaitheeswaran Ramaswamy, Chief Manager, of Applicant Bank

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OA 402/2023

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Exhibits on the part of the Applicant:
Description Of the Documents	Exhibits
Application form for Agricultural Credit dated 30.10.2014	A-1
Sanction of Letter for Term Loan 3-11-2014	A-2
Agreement For Hypothecation of Live Stock Existing and Future Crops to secure loan Amount dated: 3-11-2014	A-3
Agreement of Term Loan dated 3-11-2014	A-4
Common Agreement dated 3-11-2014	A-5
Agreement of Guarantee dated 3-11-2014	A-6
Deed of Mortgage of Agricultural Land dated 3-8- 2013Registered as No.SDG-1-01814-2013-14 IN CD No.SDGD83	A-7
Deed of Mortgage of Agricultural Land dated 3- 11-2014 Registered as No. SDG-1-04298-2014-15 IN CD No.SDGD101	A-8
Balance And Security Confirmation Letter dated 10-10-2017	A-9
Balance And Security Confirmation Letter dated 10-10-2017	A-10
Balance And Security Confirmation Letter dated 30-3-2020	A-11
Legal notice dated 18-7-2022	A-12
Postal Acknowledgment	A-13
Postal Acknowledgment	A-14
Postal Acknowledgment	A-15
Postal Acknowledgment	A-16
Postal Acknowledgment	A-17

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OA 402/2023

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Certified acc Certified account extract in A/c No. A-18 14867515006785

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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:

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Punjab National Bank v. Kadirappa

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Kadirappa

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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