Allowed

Karnataka Gramin Bank v. Shivakumar

DRT17 Jul 2026OA/84/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for issuance of a Recovery Certificate, substituting interest at 6% simple, due to default on farm machinery loans. The tribunal ruled that the defendants are liable for the principal and interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 60,88,175/- with interest @ 6% simple p.a. against defendants jointly, severally and personally, and against schedule properties of deceased borrower.

Karnataka Gramin Bank versus Shivakumar — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 17^th Day of July, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.84/2025

¶5

BETWEEN:

¶6

Karnataka Grameena Bank Devadurga Taluk, Raichur District-584111, Represented by its Chief Manager, Mr. Basavaraj Patil.

¶7

…APPLICANT

¶8

AND:

¶9

Sri. Shivakumar S/o Sri. Hanumantharaya Aged about 43 years, R/at House Medaragol Village, Konchapalli Post, Devadurga Taluk, Raichur District-584111.

¶10

Smt. Maremma W/o Sri. Channavasava Major by age, R/at House Medaragol Village, Konchapalli Post, Devadurga Taluk, Raichur District-584111.

¶11

Smt. Hanumanthi Since deceased by her LR’s

¶12

(a) Smt. Shivamma W/o Sri. Hanumayya D/o Late Hanumanthi Major by age R/at House Medaragol Village, Konchapalli Post, Devadurga Taluk, Raichur District-584111.

¶13

...DEFENDANTS

¶14

2 84/2025

¶15

Counsel on record/appeared for:

¶16

Applicant : K. Raveenadran Defendants : Exparte

¶17

FINAL ORDER

¶18

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. 60,88,175/- (Rupees Sixty Lakh Eighty Eight Thousand One Hundred Seventy Five Only) with further interest thereon from the date of filing the Application till realization.

¶19

It is the case of the applicant that defendants who availed the Farm Machinery Loan (FML) credit facility of Rs. 4,90,000/- from the applicant bank on 25.02.2006. And the defendant No. 3 (a) is the legal heirs of the deceased Borrower defendant No.3.

¶20

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Simple Mortgage Deed, Memorandum of Agreement, Legal Notice.

¶21

It is further contended that, despite availing the credit facility, 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.

¶22

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount

¶23

3 84/2025

¶24

due in the account.

¶25

Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 03.07.2025.

¶26

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-20 and got the same marked in evidence.

¶27

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.

¶28

The following issues arise for consideration in this matter:

¶29

i) Whether the applicant had succeeded in proving the OA claim

¶30

as against the defendants?

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

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 facility as stated in the OA, creation of Mortgage and Hypothecation and as claimed by the applicant bank and the defaults

¶34

4 84/2025

¶35

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.

¶36

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.

¶37

Taking into consideration the facts that the credit facility was availed for purchase of Tractor & Trailer 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).

¶38

In the result, OA.No.84/2025, stands allowed,

¶39

i) The applicant is allowed to recovery an aggregate sum of Rs. 60,88,175/- (Rupees Sixty Lakh Eighty Eight Thousand One Hundred Seventy Five 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.

¶40

5 84/2025

¶41

ii) If the sale proceeds are not found sufficient to cover the

¶42

amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for the amounts due under the loan accounts.

¶43

iii) The defendant No.3 (a) being the LRs of the deceased borrower defendant No.3 to the extent of the estate inherited by them from the deceased are liable to be proceeded against.

¶44

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.

¶45

iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

¶46

v) Interim application pending, if any, stands disposed of in terms of this final order.

¶47

Communicate a copy of the order to the parties concerned in terms

¶48

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

¶49

[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 17^th Day of July, 2026].

¶50

Sd/-

¶51

(T. RAJESH)

¶52

PRESIDING OFFICER

¶53

ANNEXURES

¶54

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶55

AW-1: Basavaraj Patil, Chief Manager of the applicant Bank

¶56

Exhibits on the part of the Applicant:

¶57

Annexure	Date	List of Documents
A1	19.02.2006	Application for Agricultural Credit Form Mechanization Loan
A2	25.02.2006	Sanction Memorandum
A3	03.03.2006	Registered Simple Mortgage deed
A4	03.03.2006	Memorandum of Agreement for Agricultural Loans
A5 & A6	21.11.2008	Letter of Revival
A7 & A8	03.09.2011	Letter of Revival
A9 & A10	08.07.2014	Letter of Revival
A11 & A12	05.07.2017	Letter of Revival
A13 & A14	31.12.2017	Acknowledgement of security / Liability
A15 & A16	20.04.2020	Letter of Revival
A17 & A18	02.04.2023	Letter of Revival
A19	19.12.2022	Legal Notice
A20	--	Statement of Account in respect of FML Loan along with interest sheet & certificate.

¶58

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

¶59

-Nil -

¶60

-Nil –

¶61

Sd/- (T. RAJESH) PRESIDING OFFICER

¶62

7 84/2025

Karnataka Gramin Bank v. Shivakumar

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Shivakumar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Satnam Singh versus Bank of Baroda

Bank of Baroda (Vijaya Bank) versus Mst Mehmooda

Central Bank of India versus Mr. Kazi

Punjab National Bank versus M/S Alpine Pressure Cooker and Kitchenware Private Ltd.

Sri Gunasekhar J versus Icici Bank Limited

Ms Mz Ulralite Aac Blocks versus Canara Bank