Allowed

Karnataka Gramin Bank v. Yankanna Sahukar and Others

DRT27 Aug 2026OA/71/2025

Case brief

AI extract

What is this about?

In an unopposed Recovery Certificate application under the RDB Act filed by a Karnataka Grameena Bank against three defendants for defaulted agricultural loans, the Tribunal validated the bank's evidence concerning loan availment, mortgage creation, and defaults. The Tribunal allowed the application, granting recovery of the principal amount with interest reduced to 6% p.a.

What did the court decide?

Recovery Certificate directed against defendants jointly, severally, and personally for aggregate sum of Rs. 29,43,298 with 6% p.a. simple interest from filing date, executable against schedule proper

Karnataka Gramin Bank versus Yankanna Sahukar and… — 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 August, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.71/2025

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BETWEEN:

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Karnataka Grameena Bank Koppar Branch, Deodurga Taluk, Raichur District-584111. Represented by its Branch Manager, Sri. Vishwanath Ganachari.

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…APPLICANT

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AND:

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Sri. Yankanna Sahukar S/o sanna Hanumanna Aged about 67 years,

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Sri. Narasareddy Hosamani S/o Ayyanna Gouda Aged about 61 years,

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Sri. Yankappa Manasagal S/o Holeppa

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Aged about 52 years, All are residing at, Koppar, Deodurga Taluk, Raichur District-584111. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mohamed Afroze Defendants : Exparte

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2 71/2025

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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. 29,43,298/- (Rupees Twenty Nine Lakh Forty Three Thoousand Two Hundred Ninety Eight 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 the following credit facilities from the applicant bank:-

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I. KCC Loan of a sum of Rs. 4,75,000/- (Rupees Four Lakh Seventy Five Only) on 17.01.2013.

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II. Agricultural Term Loan of sum of Rs. 4,00,000/- (Rupees Four Lakh Only) on 02.05.2013.

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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 Memorandum of loan Agreement for agricultural loans, simple mortgage deed, Memorandum of agreement for agricultural loans.

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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 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

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3 71/2025

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due in the account.

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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 25.03.2026.

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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-19 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 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 Mortgage as claimed by the applicant bank and the defaults committed in the accounts.

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4 71/2025

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The liability of the defendants and the claim of the amount due are also

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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 was availed for agricultural 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.71/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 29,43,298/- (Rupees Twenty Nine Lakh Forty Three Thousand Two Hundred Ninety Eight 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 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.

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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 and personally and their assets are liable for the amounts due 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 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 (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August, 2026].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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6 71/2025

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Earla Venkata Ashok Kumar, Branch Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	09.01.2013	Application form cum appraisal report for KCC Loan executed by the 1^stdefendant
A2	17.01.2013	Sanction letter
A3	17.01.2013	Memorandum of Agreement for agricultural loans
A4	17.01.2013	Undertaking Letter from the Borrower
A5	17.01.2013	Request for Agricultural Overdraft Facilities/ Kisan Credit
A6	10.01.2013	Registered Simple Mortgage Deed
A7	01.01.2016	Letter of Revival executed by the 1^stand 2^nd defendant
A8	24.12.2018	Letter of Revival executed by the 1^stand 2^nd defendant
A9	15.11.2021	Letter of Revival executed by the 1^stand 2^nd defendant
A10	05.06.2024	Acknowledgement of Security/ liability from Mortgagors
A11	10.04.2013	Application form cum Appraisal report for agricultural Term Loan executed by the 1^st defendant
A12	02.05.2013	Loan sanction Conveying letter
A13	02.05.2013	Memorandum of Agreement for agricultural loans executed by the 1^stdefendant
A14	02.05.2013	Undertaking Letter from the Borrower
A15	20.04.2013	Registered Simple Mortgage Deed

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7 71/2025

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A16	19.12.2015	Letter of Revival executed by the 1^stand 3^rd defendant
A17	03.12.2018	Letter of Revival executed by the 1^stand 3^rd defendant
A18	15.11.2021	Letter of Revival executed by the 1^stand 3^rd defendant
A19	05.6.2024	Acknowledgement of Security/ liability from Mortgagors executed by the 1^stdefendant
A20	--	Statement of Account in KCC loan in A/no 70515354000615 (old A/No. 10705131003022)
A21	--	Statement of Account in Agricultural Term loan in A/no 70515326024313

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Yankanna Sahukar and Others

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Yankanna Sahukar and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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