Allowed

Karnataka Gramin Bank v. Sri Krishne Gowda

DRT24 Feb 2026OA/843/2023

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed an original application filed by Karnataka Gramin Bank for issuance of a recovery certificate. The bank sought recovery of approximately Rs. 64.53 lakhs along with interest against eight legal heirs and borrowers who defaulted on agricultural loans secured by mortgage deeds. The tribunal found the evidence uncontroverted and decreed recovery from the respondents jo

What did the court decide?

Recovery certificate issued for Rs. 64,53,362/- with interest at 9.00% p.a. The liability is recoverable jointly and severally from the defendants against the schedule properties and other assets.

Karnataka Gramin Bank versus Sri Krishne Gowda — Insolvency and Bankruptcy | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 24^th Day of February, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.843/2023

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BETWEEN:

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Karnataka Gramin Bank, Doddabemmathi Branch, Doddabemmathi, Arkalgud Taluk, Hassan District, Rep. by its Branch Manager,

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…APPLICANT

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AND:

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Sri. Krishne Gowda, S/o. Late Boregowda, R/at Behind Petrol Bunk, Vijayanagar Extn, Hassan -573202.

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Sri. Puttaswamy Gowda, S/o. Late Boregowda, R/at Vidyuth Nagar, Opp. Akshavani, Salagame Road, Hassan -573201.

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Sri. Appanne Gowda, S/o. Late Boregowda, R/at Hennuru Konagalale Village, Arkalgud Taluk, Hassan District -573130.

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Sri. Shekara, S/o. Late Boregowda, R/at Hennuru Konagalale Village, Arkalgud Taluk, Hassan District -573130.

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Sri. Suresha, Late Boregowda, R/at Hennuru Konagalale Village, Arkalgud Taluk,

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OA 843/2023

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Hassan District -573130.

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Sri. Thimmegowda K. B., Late Boregowda, R/at Opp Rudregowda House, Bittagowdanahally, Hassan District -573130.

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Sri. Dharma K. B., Late Boregowda, R/at Hebbagodi, Opp theatre, Bangalore -560099.

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Smt. Rajamma, W/o. Sundresha, R/at Nayakanhalli Village, Kattaya Hobli -573128, Hassan Taluk and District.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. PRN Associates 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 for Rs. 64,53,362/- (Rupees sixty-four lakh fiftythree thousand three hundred and sixty-two only) with further interest thereon and cost from the Defendants.

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t is the case of the Applicant that Late Smt. Gowramma and Defendant Nos. 2 and 3, as borrowers, availed a Barn Repairs Loan of Rs. 50,000/- (Rupees Fifty Thousand Only) for the purpose of meeting tobacco processing expenses; a Crop Loan of Rs. 13,00,000/- (Rupees Thirteen Lakh Only) under the Kisan Credit Card Scheme for the purpose of cultivating tobacco, banana, potato, and paddy on the OA schedule

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OA 843/2023

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properties; and an ATL Gold Card Loan of Rs. 10,00,000/- (Rupees Ten Lakh Only) for the purpose of land development on the schedule properties, and in respect of the Crop Loan and ATL Gold Card Loan, Defendant Nos. 1 to 8 executed registered simple mortgage deeds in favour of the Applicant, and it is further the case of the Applicant that Late Smt. Gowramma is deceased and Defendant Nos. 1 to 8 herein are the legal heirs and successors to the estate of the deceased.

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It is also the case of the Applicant that, in view of the aforesaid loans, the respective Defendants executed the necessary loan documents, including simple mortgage deed, in favour of the Applicant Bank to secure the said loans.

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It is the case of the Applicant that the Defendants, despite availing the credit facility, agreeing with the Terms and Conditions for the loans, failed in complying with the same, resulting in defaults and consequentially turning the loan accounts as Non-Performing Asset (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 service of summons, there was no appearance on behalf of the Defendants. Hence, Defendant Nos. 1, 2, 6, and 7 were called absent and set ex parte on 26.09.2025. Even though Defendant Nos. 3 and 4 filed a written statement, they failed to file the same within the prescribed time; consequently, the I.A. filed for condonation of delay in filing the written statement was dismissed, and they were also called absent and set ex

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OA 843/2023

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parte on 26.09.2025. Further, Defendant Nos. 4 and 5 were called absent and set ex parte on 18.02.2026.

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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-35, 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 the proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the Applicant succeeded in proving the OA claim as against the Defendants?

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ii) If so, to what extent?

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Both these issues are gone into and decided together.

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The evidence tendered by the Applicant remains uncontroverted and undisputed. The evidence put forth by the Applicant is found admissible and sufficient to prove the averments made in the OA, and the default committed by the Defendants in repaying the loan amount due. The liability of the Defendants and the loan amount due are also proved by the above documents.

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Though the applicant contends that Defendant Nos. 2 and 3, along with the deceased Gowramma, availed all the loans, a perusal of the documents reveals otherwise. The records clearly show that the Tobaco barn repair loan was availed by the deceased Gowramma herself, and she

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OA 843/2023

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executed a declaration letter stating that the schedule property was mortgaged to the applicant. Further, upon examination of the documents executed by the Defendants, it is evident that the KCC loan and ATL Gold loan were availed by Defendant Nos. 1 and 2 along with the deceased Gowramma, and Defendant Nos. 1 to 8 executed a simple mortgage deed in favour of the applicant in respect of the said credit facilities. Defendant Nos. 1 to 8, being the mortgagors as well as the legal heirs of the deceased borrower Gowramma, have been arrayed as parties to the proceedings they are jointly and severally liable for repayment of the loan amount.

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Hence in view of the above findings this Tribunal comes to the conclusion that the OA is liable to be allowed.

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Taking into consideration the facts and circumstances of the case and the fact that the O.A. claim has been arrived at by calculating interest at the agreed rate, pendente lite and future interest is awarded at 9.00% per annum (simple interest). The prayer for interest with monthly rests and for penal interest for the future period is hereby declined.

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In the result, OA.No.843/2023, is allowed,

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i) The Applicant is allowed to recover an aggregate sum of Rs. 64,53,362/- (Rupees sixty-four lakh fifty-three thousand three hundred and sixty-two only) with pendente lite and future interest of 9.00% p.a. (simple) from the date of filing of the OA till the realization, from the Defendants jointly and severally after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed

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OA 843/2023

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the same to be recovered by proceeding against schedule properties. Properties schedule to the OA be the schedule to the Recovery Certificate.

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ii) In the event that the sale proceeds are insufficient to fully satisfy

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the decretal dues, the remaining balance, if any, shall be recoverable from the Defendants by proceeding against their other assets in accordance with law.

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iii) The applicant bank is allowed cost of the proceedings for which Applicant to file cost memo within seven 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 PY directly on the Computer, after its transcription, corrected and pronounced by me in the open Court on this the 24^th day of February, 2026)

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ravi Kumar J, Branch Manager, of Applicant Bank.

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OA 843/2023

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	02.09.2013	Loan application
A2	11.09.2013	Sanction letter
A3	11.09.2013	Memorandum of loan agreement
A4	11.09.2013	Declaration letter
A5	29.08.2013	Loan application
A6	16.11.2013	Sanction letter
A7	16.11.2013	Hypothecation agreement
A8	17.10.2013	Registered memorandum of Simple mortgage Deed
A9	26.03.2021	Letter
A10	29.08.2013	Loan application
A11	11.09.2013	Sanction letter
A12	16.11.2013	Memorandum of loan agreement
A13	15.10.2013	Registered memorandum of simple mortgage deed
A14 to A31	11.08.2022 (18)	Copies of Demand Notice
A32	23.08.2022	Legal notice
A33	--	Statement of account Tobacco barn loan
A34	--	Statement of account KCC
A35	--	Statement of account ATL

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Sri Krishne Gowda

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sri Krishne Gowda

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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