Debts Recovery Tribunal allowed the bank's application for a recovery certificate against four respondents including legal heirs, granting reduced simple interest of 6% as the loans were for agricultural purposes.
Recovery Certificate issuance allowing recovery of Rs 26,62,795.98 plus future interest at 6% p.a. simple from respondents or their estate/schedule 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 04th Day of September, 2026
Present: Sri. T. RAJESH Presiding Officer OA.No.440/2025
BETWEEN:
Karnataka Grameena Bank Branch office at: Pothnal Branch, Manvi Taluk, Raichur District – 584 143
Represented by Manager Smt. Amaramma S L …APPLICANT
AND:
S/o. Narsappa Aged about 63 years
1&2 are R/at: R/at: Udbal Village, Manvi Taluk, Raichur District – 584 120
3 & 4 are R/at: Beiwat Village, Manvi Taluk, Raichur District – 584 138 ...DEFENDANTS
OA-440/2025
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Counsel on record/appeared for: Applicant : Naveen Tao Defendants : Ex parte
FINAL ORDER
OA-440/2025
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repayment and consequentially turning the loan accounts as NPA.
Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-31 and got the same marked in evidence.
Both these issues are gone into and decided together.
evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA,
OA-440/2025
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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 document. The claim of the applicant is well within the limitation.
find both these issues are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.
that the OA can be allowed with a reduced interest of 6.00% (simple).
The applicant is allowed to recover an aggregate sum of Rs.
26,62,795.98/- (Rupees Twenty-Six Lakhs Sixty-Two Thousand Seven Hundred and Ninety-Five and Paisa Ninety-Eight Only) with further interest @6.00 % p.a.(simple), from the defendant no.1 & 2, from the defendant nos. 3 & 4 to the extent of their inheritance of
any estate from the deceased borrower Sri. Sanna Yankappa, after
giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding
against the schedule property. The schedule property to the OA be
OA-440/2025
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the schedule property 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 all such
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 of this final order.
terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT
(Procedure) Rules, 1993.
[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 04th Day of September, 2026].
(T. RAJESH) PRESIDING OFFICER
Sd/-
OA-440/2025
6
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1 Sri. S Suneel Kumar, S/o. S Vandanamaiah, Branch Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
| ANNE XURE S |
Date | DESCRIPTION |
|---|---|---|
| A1 | 07.10.2009 | Application for agricultural loan |
| A2 | 20.11.2009 | Simple mortgage deed registered as document no. MNV-1- 07303-2009-10, at the office of sub-registrar, Manvi |
| A3 | 27.11.2009 | Memorandum of agreement for agricultural loans |
| A4 | 06.11.2012 | Letter of revival |
| A5 | 01.09.2015 | Letter of revival |
| A6 | 16.08.2018 | Letter of revival |
| A7 | 27.03.2020 | Acknowledgement of security/liability from mortgagors |
| A8 | 12.06.2020 | Letter of revival |
| A9 & A10 |
20.05.2023 |
Two letters of revival |
| A11 | 16.06.2011 | Common application cum appraisal for agricultural loan |
| A12 | 30.06.2011 | Sanction memorandum |
| A13 | 04.07.2011 | Simple mortgage deed registered as document no. MNV-1- 01730-2011-12, at the office of sub-registrar, Manvi |
| A14 | 18.07.2011 | Memorandum of agreement for agricultural loans |
| A15 | 07.05.2014 | Letter of revival of borrower |
| A16 | 07.05.2014 | Letter of revival of legal heir |
| A17 | 02.05.2017 | Letter of revival of borrower |
| A18 | 02.05.2017 | Letter of revival by legal heir |
| A19 | 07.03.2020 | Letter of revival by borrower |
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| A20 | 07.03.2020 | Letter of revival by legal heir | |
|---|---|---|---|
| A21 | 21.07.2022 | Letter of revival by borrower | |
| A22 | 21.07.2022 | Letter of revival by legal heir | |
| A23 | 27.05.2023 | Acknowledgement of security/liability from mortgagors | |
| A24 | 05.12.2024 | Legal notice | |
| A25 | 05.12.2024 | Four postal receipts | |
| A26 A27 |
& | --------- | Two online postal delivery confirmation letter |
| A28 A29 |
& | --------- | Two postal covers returned unserved |
| A30 | --------- | Bank statement a/c no. 78115330003009 (old a/c no. 2009000030) |
|
| A31 | --------- | Bank statement a/c no. 78115354066515 (old a/c no. 10781KC1000016) |
Witness Examined for the Defendants: -Nil
List of Documents Exhibited for the Defendants:
-Nil -
Sd/-
(T. RAJESH) PRESIDING OFFICER
3 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order is to be passed?
Whether interest rate should be reduced considering the agricultural purpose of the loan?
2 provisions across 1 enactments
Karnataka Grameena Bank Branch office at Pothnal Branch, Manvi Taluk, Raichur District
Sri. Gaddeppa
Sri. Mariswamy J
Smt. Duragamma
Sri. Basavaraj
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
