DTII allowed an Original Application seeking a Recovery Certificate against three agricultural borrowers for default on bank loans. The Court reduced the interest rate to 6% simple.
Recovery Certificate directed for aggregate sum of Rs. 25,70,274/- plus further interest @ 6.00% p.a. (simple) from filing date till realization.
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 27th Day of April, 2026
Present: Sri. T. RAJESH Presiding Officer OA.No.568/2025
BETWEEN:
Karnataka Grameena Bank Head office at: Udbal, Bellary Branch office at: Udbal, Maski taluk, Raichur district – 584 128 Karnataka state
Rep. by its Branch manager Mr. Dhagudu Paramesh …APPLICANT
AND:
OA-568/2025
2
Counsel on record/appeared for:
Applicant : K Raveendran Defendants : Ex parte
FINAL ORDER
OA-568/2025
3
Both these issues are gone into and decided together.
unrebutted as defendants remained ex parte. 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 the security interest and the defaults committed in the
OA-568/2025
4
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.
availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view
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.
25,70,274/- (Rupees Twenty-Five Lakhs Seventy Thousand Two
Hundred and Seventy-Four Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all
the amounts recovered and received during the pendency of the OA
and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.
OA-568/2025
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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 27th Day of April, 2026].
Sd/-
(T. RAJESH) PRESIDING OFFICER
OA-568/2025
6
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1 Mr. Dhagudu Paramesh, S/o. Mr. D Yellappa, Branch Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit | Particulars of Documents |
|---|---|
| Nos. | |
| A1 | Application form cum Appraisal report for Kisan OD Limits dated 13.09.2008 |
| A2 | Registered Simple Mortgage Deed for KCC/OD facility to Agriculturists dated 23.09.2008 |
| A3 | Request for Agricultural Overdraft Facilities/ Kisan Credit Card dated 24.09.2008 |
| A4 | Letter of Request for Overdraft Facilities dated 24.09.2008 |
| A5 | Agreement and Deed for Kisan OD dated 24.09.2008 |
| A6 | Undertaking Letters from the Borrower dated 24.09.2008 |
| A7 | Letter of Revival dated 18.05.2011 |
| A8 | Letter of Revival dated 05.02.2014 |
| A9 & A10 |
Letter of Revival dated 04.11.2016 |
| A11 | Acknowledgement of Security / Liability from Mortgagors dated 04.06.2019 |
| A12 | Letter of Revival dated 18.06.2019 |
| A13 | Letter of Revival dated 30.04.2022 |
| A14 | Legal Notice dated 29.12.2022 |
| A15 | Legal Notice dated 16.08.2024 |
| A16 | Common Application form cum Appraisal report for credit facilities for Agricultural Loan dated 31.07.2010 |
| A17 | Particulars of Co-obligant/ Guarantor dated 31.07.2010 |
| A18 | Registered Simple Mortgage Deed for KCC/OD facility to Agriculturists dated 02.08.2010 |
OA-568/2025
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| A19 | Loan Sanction Conveying Letter dated 09.08.2010 |
|---|---|
| A20 | Request for Agricultural Overdraft Facilities / Pragathi Kisan Credit Card dated 09.08.2010 |
| A21 | Agreement cum Deed of Hypothecation for Agricultural Loans dated 09.08.2010 |
| A22 | Nomination cum authority Letter / Undertaking Letter dated 09.08.2010 |
| A23 | Letter of Revival dated 09.03.2013 |
| A24 | Letter of Revival dated 25.02.2016 |
| A25 | Letter of Revival dated 05.01.2019 |
| A26 | Acknowledgement of Security / Liability from Mortgagors dated 26.03.2021 |
| A27 | Letter of Revival dated 29.11.2021 |
| A28 | Letter of Revival dated 06.08.2024 |
| A29 | Legal Notice dated 29.12.2022 |
| A30 | Legal Notice dated 16.08.2024 |
| A31 | Statement of Account in respect of KOD a/c No. 85115355002113 |
| A32 | Statement of Account in respect of KCC a/c No. 85115354010313along with interest sheet & certificate |
| Witness | Examined for the Defendants: -Nil - |
List of Documents Exhibited for the Defendants:
-Nil -
Sd/-
(T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed?
1 provisions across 1 enactments
Karnataka Grameena Bank
Sri. Nagesh Havaldar
Sri. Sharanappa
Sri. Ramanna
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
