Allowed

Icici Bank Limited v. Tanniru Sunil

DRT11 Sept 2026OA/720/2024

Case brief

AI extract

What is this about?

In OA.No.720/2022, the Debt Recovery Tribunal allowed the application filed by Punjab National Bank for a recovery certificate against defendants, who are legal heirs of deceased borrowers and guarantors. The defendants appeared ex parte. The Tribunal found the loan documents, hypothecation, mortgage, and default proved. The Tribunal allowed the claim of Rs. 32,02,011 with interest reduced to 6% per annum for agricultural credit purposes and ordered the issuance of a recovery certificate executable against the schedule property and other inherited assets.

What did the court decide?

OA.No.720/2022 allowed. Recovery Certificate issued for Rs. 32,02,011 with 6% p.a. simple interest for agricultural credit purposes from date of filing. Recovery executable against schedule property and inherited assets of legal heirs.

Icici Bank Limited versus Tanniru Sunil — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 11^th Day of September, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.720/2022

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BETWEEN:

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Punjab National Bank Branch Office, at. K.C. Rani Road, Near Shanbhag Lodge, Tanga Koot, Gadag-582 101. Represented its Stressed Assets Targeted Resolution and Action (SASTRA) And Senior Manager and GPA Holder Sri. Sanjeev Vital Deshpande.

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…APPLICANT

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AND:

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Sri. Hananappa Basappa Kallur Aged about 55 years S/o Basappa Residing at hallikeri Village, Mundargi Taluk, Gadag District-582 115 Since Deceased represented by his Legal Representatives

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1 (a) Smt. Yallawwa W/o Late hanumappa Basappa Kallur Residing at hallikeri Village, Mundargi Taluk, Gadag District-582 115

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1(b) Sri. Ramesh Aged about 35 years S/o Late Hanumappa Basappa Kallur Residing at hallikeri Village, Mundargi Taluk, Gadag District-582 115.

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1(c) Sri. Mahantesh

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2 720/2022

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Aged about 35 years S/o Late Hanumappa Basappa Kallur Residing at hallikeri Village, Mundargi Taluk, Gadag District-582 115

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Sri. Adivappa Ningappa Kovi Aged about 52 years S/o Ningappa Residing at Eklasapur Village, Yaklaspur, Gadag-282133.

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3. Sri. Basappa Bellikoppa

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Aged about 57 years, S/o Kariyappa Bellikoppa Residing at hallikeri Village, Aged about 35 years S/o Late Hanumappa Basappa Kallur Residing at hallikeri Village, Mundargi Taluk, Gadag District-582 115 Since deceased represented by his Legal representatives

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3(a) Smt. Mallavva

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W/o Late Basappa Bellikoppa Residing at Hallikeri Village, Mundargi Taluk, Gadag District-582 115.

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3(b) Sri. Manjunath

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Major Son of Late Basappa Bellikoppa Residing at hallikeri Village, Mundargi Taluk, Gadag District-582 115

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3(c) Sri. Muthappa

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Major, Son of Late Basappa Bellikoppa Residing at hallikeri Village, Mundargi Taluk, Gadag District-582 115

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...DEFENDANTS

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3 720/2022

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Counsel on record/appeared for:

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Applicant : S.R. Narayanappa 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. 32,02,011/- (Rupees Thirty Two Lakh Two Thousand Eleven 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 1 (a) to (c) being legal heirs of deceased Borrower defendant No.1 and Defendant No. 3(a) and 3(c) being legal heirs of deceased Guarantor defendant No.3 availed the following credit facilities from the applicant bank:-

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I. KCC Scheme of a sum of Rs. 20,00,000/- (Rupees Twenty Lakh Only) on 15.07.2017.

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II. Short Term Crop Loan Under KCC Scheme of sum of Rs. 3,00,000/(Rupees Three Lakh Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Deed of Guarantee, Mortgage Deed, Hypothecation agreement.

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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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4 720/2022

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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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 13.01.2026.

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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-16 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 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 forth by the applicant were found admissible and are sufficient to prove

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5 720/2022

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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. 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 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.720/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 32,02,011/- (Rupees Thirty Two Lakh Two thousand Eleven Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants including defendant 1(a) to (c) and defendant No. 3(a) to 2(c) to the extent of his inheritance of any estate

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from the deceased borrower/ guarantor 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

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6 720/2022

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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 amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets and the from the defendant 1(a) to (c) and defendant No. 3(a) to (c) to extent of their inheritance of any estate from the deceased borrower 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 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 11^th Day of September, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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7 720/2022

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Devaraj H.J, Deputy 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	15.07.2016	Application form for Agricultural Credit from the 1^st defendant
A2	15.07.2016	Letter of sanction of KCC loan duly acknowledged by the defendants
A3	15.07.2016	Hypothecation agreement for a sum of Rs. 20.00 Lakhs executed by the 1^stdefendant
A4	15.07.2016	Letter of undertaking for a sum of Rs. 20.00 Lakhs executed by the 1^stdefendant
A5	15.07.2016	Letter of Undertaking for a sum of Rs. 20.00 Lakhs executed by the 1^stdefendant
A6	15.07.2016	Deed of Guarantee for a sum of Rs. 20.00 Lakhs executed by the 1^stdefendant
A7	11.07.2016	Mortgage deed executed for a sum of Rs. 20.00 Lakhs executed by the 1^stdefendant
A8	06.07.2017	Loan Application form for Agricultural Credit from the 1^stdefendant
A9	06.07.2017	Letter of undertaking for a sum of Rs. 3.00 Lakhs executed by the 1^stdefendant
A10	06.07.2017	Hypothecation agreement for a sum of Rs. 3.00 Lakhs executed by the 1^stdefendant
A11	06.07.2017	Deed of Guarantee for a sum of Rs. 3.00 lakhs executed by the 1^stdefendant
A12	18.04.2017	Mortgage deed executed for a sum of Rs. 6,75,000/- executed by the 1^stdefendant

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8 720/2022

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A13	31.03.2020	Balance and security confirmation letter dt. 01.07.2020 confirming a balance of Rs. 3,50,625/- as on 31.03.2020
A14	23.04.2020	Recall notice issued by the applicant to defendants
A15	--	Account extract KCC loan A/c 17700880003-017700AE00006719
A16	--	Account extract KCC loan A/c 177008800033380

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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

Icici Bank Limited v. Tanniru Sunil

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Tanniru Sunil

Case brief

What is this about?

What did the court decide?

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