Allowed

Karnataka Gramin Bank v. Munishame Gowda a M

DRT24 Jul 2026OA/731/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application for a Recovery Certificate against defaulting borrowers who were absent ex parte. The court reduced the interest rate to 6% per annum simple for agricultural loans and authorized recovery from mortgage properties.

What did the court decide?

Recovery Certificate to be drawn for Rs. 33,80,109/- with simple interest at 6% p.a. from filing date, recoverable from defendants and against schedule properties.

Karnataka Gramin Bank versus Munishame Gowda a M — 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 24^th Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.731/2023

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BETWEEN:

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Karnataka Grameena Bank Channarayapatna Branch, Devanahalli Taluk, Bangalore Rural District-562135, Karnataka State. Represented by its Branch Manager, Ganesh Babu. M. …APPLICANT

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AND:

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Munishamegowda A. M. S/o Munishamappa, Aged about 72 Years,

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Ganesh. A.M.

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S/o Munishamappa, Aged about 42 Years,

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Suresh Babu, S/o Munishamappa, Aged about 38 Years,

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DHarmemdra S/o Munishamappa, Aged about 36 Years,

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Kiran Kumar S/o Munishamappa, Aged about 32 Years,

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All are R/of Ankonahalli Village Sublibele Post, Channarayapatna Hobli, Devanahalli Taluk, Bangalore Rural District-562 129.

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...DEFENDANTS

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2 731/2023

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Counsel on record/appeared for:

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Applicant : G. Srinivasan 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. 33,80,109/- (Rupees Thirty Three Lakh Eighty Thousand One Hundred Nine 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. Agricultural Cash Credit for the cultivation of Crops of a limit of Rs. 1,40,000/- (Rupees One Lakh Forty Thousand Only) on 09.09.2011.

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II. Agricultural Term Loan for the establishing Poly House of a limit of Rs. 8,00,000/- (Rupees Eighty Lakh Only) on 15.12.2011.

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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 Mortgage Deed, Simple Mortgage Deed, Legal Notice.

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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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3 731/2023

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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 09.10.2024.

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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-22 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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4 731/2023

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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.731/2023, stands allowed,

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

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33,80,109/- (Rupees Thirty Three Lakh Eighty Thousand One Hundred Nine 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

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5 731/2023

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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, severally and 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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14. 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 24^th Day of July, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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6 731/2023

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Naveen 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	09.09.2011	Original Loan application
A2	09.09.2011	Original Loan Sanction Terms and Conditions
A3	09.09.2011	Original Mortgage Deed Agreement
A4	05.09.2011	Original Simple Mortgage Deed
A5 to 7	27.06.2012	Original Letter of Commitment, Letter of Acknowledgement of liability, Letter of Revival
A8	17.11.2011	Original Loan Application
A9 & A10	15.12.2011, 20.12.2011	Original Sanction Letter, Terms and Condition
A11	20.12.2011	Original Mortgage Deed/ Hypo Agreement
A12	16.12.2011	Original Simple Mortgage Deed
A13-18	--	Original Acknowledgement of security dated 16.12.2011. letter of Authority dated 16.11.2013, Letter of Commitment Dated 15.12.2014, Acknowledgement of Liability dated 15.12.2014, 30.11.2017, 12.10.2020.
A20	--	Office Copy of the 2 legal notice dated 18.11.2022 and RPAD
A21-22	--	True extract of 2 statement of Loan account

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

Sd/-

(T. RAJESH)

7 731/2023

PRESIDING OFFICER

Karnataka Gramin Bank v. Munishame Gowda a M

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Munishame Gowda a M

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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Case details

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