Allowed

Karnataka Gramin Bank v. Javaregowda

DRT27 Mar 2026OA/862/2025

Case brief

AI extract

What is this about?

The tribunal allowed an application seeking a recovery certificate for an agricultural and personal loan account. The respondents appeared ex parte. The court found the claim well within limitation and allowed recovery of the principal amount along with reduced simple interest.

What did the court decide?

Issuance of Recovery Certificate for aggregate sum of Rs. 22,73,015.51/- plus further reduced simple interest at 6-12%.

Karnataka Gramin Bank versus Javaregowda — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 27^th Day of March, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.862/2025

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BETWEEN:

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Karnataka Grameena Bank Head office at: Gandhinagar, Bellary Branch Office at: Jodigubbi Village, Holenarasipura Taluk, Hasan District – 573 102

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Represented by its Branch Manager Mr. H Mallikarjunaswamy …APPLICANT

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AND:

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Sri. Javaregowda S/o. Late Boregowda Aged about 76 years No. 79-1, Basavanahalli Koppalu Village, Arakalagudu Taluk, Hassan Dist. – 573 136

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Sri. B J Pradeep S/o. Javaregowda Aged about 44 years No. 79-1, Basavanahalli Koppalu Village, Arakalagudu Taluk, Hassan Dist. – 573 136

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Sri. K M Basavarajaiah S/o. Manjaiah Aged about 67 years No. 220, Thammannayyana Koppalu Village, Kalenahalli, Arakalagudu Taluk, Hassan Dist. – 573 136

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OA-862/2025

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Sri. Srinivasa S/o. Boregowda Aged about 73 years No. 64, Basavanahalli Koppalu Village, Arakalagudu Taluk, Hassan Dist. – 573 136 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Avinash B Rahul Defendants : Ex parte

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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 for issuance of Recovery Certificate against the defendants for Rs. 22,73,015.51/- (Rupees Twenty-Two Lakhs Seventy-Three Thousand and Fifteen and Paisa Fifty-One 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 are availed the following credit facilities:

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Medium term loan of Rs. 75,000/- (Rupees Seventy-Five Thousand Only) for the purpose of pipe.

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Vehicle loan of Rs. 55,000/- (Rupees Fifty-Five Thousand Only) for the purchase of motor bike.

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Agricultural term loan of Rs. 1,00,000/- (Rupees One Lakhs Only) for the purpose of purchase of four cows.

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Agricultural term loan of Rs. 30,000/- (Rupees Thirty Thousand Only) for the purpose of purchasing firewood for processing tobacco.

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KCC crop loan of Rs. 3,00,000/- (Rupees Three Lakhs Only) for

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OA-862/2025

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the purpose of tobacco crop loan.

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Term loan of Rs. 49,000/- (Rupees Forty-Nine Thousand Only) for the purpose of doing grocery business.

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Agricultural term loan of Rs. 75,000/- (Rupees Seventy-Five Thousand Only) for the purpose of barn repair.

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Farmers personal loan of Rs. 50,000/- (Rupees Fifty Thousand Only) for the purpose of marriage.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with hypothecation agreement.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount 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

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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 on the defendants, they failed to

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appear, resulting the defendants being set ex parte on 05.12.2025.

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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-77 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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OA-862/2025

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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 ex parte. 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 the security interest 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 document. 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 are 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 is availed for Agricultural, vehicle, business & personal purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a

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OA-862/2025

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reduced interest of 6.00%, 10.00%, 12.00% & 11.00% (simple).

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In the result, OA.No.862/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 22,73,015.51/- (Rupees Twenty-Two Lakhs Seventy-Three Thousand and Fifteen and Paisa Fifty-One Only) consisting of:

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a. Rs. 4,11,029/- (Rupees Four Lakhs Eleven Thousand and TwentyNine Only) towards Agri. TL pipe line loan with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.1:

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b. Rs. 52,718.80/- (Rupees Fifty-Two Thousand Seven Hundred and Eighteen and Paisa Eighty Only) towards vehicle loan with further interest @10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 to 3:

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c. Rs. 5,67,982/- (Rupees Five Lakhs Sixty-Seven Thousand Eight Hundred and Eighty-Two Only) towards Agri. ATL with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.1:

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d. Rs. 1,35,544.31/- (Rupees One Lakhs Thirty-Five Thousand Five Hundred and Forty-Four and Paisa Thirty-One) towards Personal Loan with further interest @10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 & 4:

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OA-862/2025

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e. Rs. 5,21,047.40/- (Rupees Five Lakhs Twenty-One Thousand and Forty-Seven and Paisa Forty Only) towards personal loan with further interest @7.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 & 4:

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f. Rs. 1,27,718/- (Rupees One Lakhs Twenty-Seven Thousand Seven Hundred and Eighteen Only) towards KCC facility loan with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 & 4:

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g. Rs. 2,08,053/- (Rupees Two Lakhs Eight Thousand and Fifty-Three Only) towards KCC facility loan with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 & 4:

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h. Rs. 2,48,923/- (Rupees Two Lakhs Forty-Eight Thousand Nine

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Hundred and Twenty-Three Only) towards KCC facility loan with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 & 4:

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After giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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OA-862/2025

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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

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jointly, severally and personally and their assets are liable for all such

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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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

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 27^th Day of March, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA-862/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Chetan S, S/o. Shanthaveera, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Loan application for purchasing pipe line for pour water (short term & midterm) for a sum of Rs. 75,000/-dated 10.10.2011
A2	Letter of sanction dated 15.10.2011 for a sum of Rs. 75,000/- from the applicant bank
A3	Hypothecation agreement dated 15.10.2011 for a sum of Rs. 75,000/-executed by the 1^stdefendant
A4	Declaration under form III executed by the 1^st& 2^nddefendants on 30.08.2011
A5	Loan application proposal cum appraisal for vehicle/consumer loan for purchase of motor cycle for a sum of Rs. 55,000/- dated 15.10.2011
A6	Letter of sanction dated 15.10.2011 for a sum of Rs. 55,000/- from the applicant bank
A7	Deed of hypothecation (for vehicle/consumer durable) dated 15.10.2011 for a sum of Rs. 55,000/- executed by the 1^st& 2^nd defendants
A8	Supplementary agreement of hypothecation dated 15.10.2011 for a sum of Rs. 55,000/-executed by the 1^st& 3^rddefendants
A9	Guarantee agreement for personal loan dated 15.10.2011 for a sum of Rs. 55,000/-executed by the 3^rddefendant
A10	On demand promissory note and take delivery letter dated 15.10.2011 for sum of Rs. 55,000/-
A11	Loan application for AATL loan for purchasing the CB cows for a sum of Rs. 1,00,000/- dated 20.05.2012 executed by the 1^st defendant
A12	Letter of sanction of AATL loan dated 02.06.2012 for a sum of Rs. 1,00,000/- from the applicant bank
A13	Hypothecation agreement dated 02.06.2012 for a sum of Rs. 1,00,000/- executed bythe 1^stdefendant
A14	Declaration under form III executed by the 1^st& 2^nddefendants on 30.05.2012
A15	Loan application for personal loan to buy firewood for processing

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OA-862/2025

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	tobacco for a sum of Rs. 30,000/- dated 28.03.2014 executed by the 1^st& 4^thdefendants
A16	Letter of sanction of personal loan dated 28.03.2014 for a sum of Rs. 30,000/- from the applicant bank
A17	On demand promissory note and take delivery letter dated 28.03.2014 for sum of Rs. 30,000/- from the applicant bank
A18	Loan application for KCC loan for tobacco crop loan for a sum of Rs. 3,00,000/- dated 29.03.2014 executed bythe 1^stdefendant
A19	Letter of sanction of KCC loan dated 29.03.2014 for a sum of Rs. 3,00,000/- from the applicant bank
A20	Hypothecation agreement dated 29.03.2014 for a sum of Rs. 3,00,000/- executed bythe 1^stdefendant
A21	Guarantee agreement for KCC loan dated 29.03.2014 for a sum of Rs. 3,00,000/- executed bythe 4^thdefendant
A22	Declaration under form III executed by the defendants on 28.03.2014
A23	Loan application for CC loan for grocery business for a sum of Rs. 49,000/- dated 08.04.2014 executed bythe 1^st& 4^thdefendants
A24	Letter of sanction of CC loan dated 08.04.2014 for a sum of Rs. 49,000/- from the applicant bank
A25	Agreement for advances from-12 agreement to secure an advance against hypothecation of goods dated 08.04.2014 for a sum of Rs. 49,000/- executed bythe 1^stdefendant
A26	Agreement for advances from-8 dated 08.04.2014 for a sum of Rs. 49,000/- executed bythe 4^thdefendant
A27	Letter executed by the 4^thdefendant having execution guarantee agreement for the credit facilityavailed bythe 1^stdefendant
A28	On demand promissory note and take delivery letter dated 08.04.2014 for sum of Rs. 49,000/-
A29	Loan application for tobacco barn repair for a sum of Rs. 75,000/- dated 22.03.2014 executed bythe 1^stdefendant
A30	Letter of sanction of barn repair dated 08.04.2014 for a sum of Rs. 75,000/- from the applicant bank
A31	Hypothecation agreement dated 08.04.2014 for a sum of Rs. 75,000/- executed bythe 1^stdefendant
A32	Declaration under form III executed by the defendants on 28.03.2014
A33	Personal loan application for the purpose of marriage for a sum of Rs. 50,000/- dated 08.04.2014 executed by the 1^st& 4^th defendants
A34	Letter of sanction of farmers personal loan dated 08.04.2014 for a sum of Rs. 50,000/- from the applicant bank

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OA-862/2025

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A35	Personal loan agreement dated 08.04.2014 for a sum of Rs. 50,000/- executed bythe 1^stdefendant
A36	Guarantee agreement for personal loan dated 08.04.2014 for a sum of Rs. 50,000/- executed bythe 4^thdefendant
A37	On demand promissory note and take delivery letter dated 08.04.2014 for sum of Rs. 50,000/-
A38	Acknowledgement of liability dated 28.03.2014 for amount of Rs. 92,088/-
A39	Acknowledgement of liability dated 23.03.2017 for amount of Rs. 1,38,454/-
A40	Acknowledgement of liability dated 31.03.2019 for amount of Rs. 1,09,896/-
A41	Letter of revival dated 02.03.2022 in respect of the limit of Rs. 75,000/-
A42	Letter of commitment dated 11.10.2014 for a limit of Rs. 55,000/-
A43	Acknowledgement of liability dated 30.09.2017 for the limit of Rs. 22,469/- upto 30.09.2017
A44	Acknowledgement of debt and security dated 31.08.2020 for the limit of Rs. 38,100/-
A45	Letter of revival dated 21.09.2022 confirming a balance in respect of the limit of Rs. 55,000/-
A46	Letter of commitment dated 19.05.2015 in respect of the account no. 85005114568 limit of Rs. 1,00,000/-
A47	Acknowledgement of liability dated 10.05.2018 for amount of Rs. 2,32,032/- upto 31.03.2018
A48	Acknowledgement of liability dated 10.05.2018 for amount of Rs. 2,68,832/- upto 31.03.2019
A49	Acknowledgement of debt and security dated 31.12.2021 for the limit of Rs. 3,73,089/- upto 30.09.2021
A50	Letter of revival dated 02.05.2024 confirming a balance in respect of the limit of Rs. 1,00,000/-
A51	Letter of commitment dated 23.03.2017 for a limit of Rs. 30,000/-
A52	Acknowledgement of liability dated 31.03.2019 for amount of Rs. 61,422/- upto 31.03.2019
A53	Acknowledgement of debt and security dated 02.03.2022 for the limit of Rs. 92,400/- upto 25.02.2022
A54	Acknowledgement of liability dated 20.03.2017 for amount of Rs. 2,80,595/- upto 29.02.2016
A55	Acknowledgement of debt and security dated 20.07.2019 for the limit of Rs. 4,02,673/- upto 31.03.2019
A56	Letter of revival dated 25.03.2022 confirming a balance in respect

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OA-862/2025

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	of the limit of Rs. 3,00,000/-
A57	Letter of commitment dated 20.03.2017 for a limit of Rs. 49,000/-
A58	Acknowledgement of liability dated 10.02.2019 for amount of Rs. 70,095/-
A59	Acknowledgement of debt and security dated 31.08.2020 for the limit of Rs. 77,820/- upto 30.06.2019
A60	Letter of revival dated 02.03.2022 confirming a balance in respect ATL limit of Rs. 49,000/-
A61	Acknowledgement of liability dated 06.04.2017 for amount of Rs. 74,008/- as on 31.03.2017
A62	Acknowledgement of liability dated 31.03.2019 for amount of Rs. 99,340/- upto 31.03.2017
A63	Acknowledgement of debt and security dated 01.05.2020 for amount of Rs. 1,13,662/- upto 27.03.2020
A64	Letter of revival dated 02.03.2022 confirming a balance for the limit of Rs. 75,000
A65	Acknowledgement of liability dated 05.04.2017 for amount of Rs. 76,739/-
A66	Acknowledgement of debt and security dated 31.03.2019 confirminga balance for the limit of Rs. 50,000/-
A67	Letter of revival dated 11.01.2022 confirming a balance in respect of the limit of Rs 50,000/-
A68	Letter of revival dated 10.12.2023 confirming a balance in respect of the limit of Rs 50,000/-
A69	Recall notice dated 26.07.2024 issued by the applicant bank
A70 to A77	Account extracts: 42089326006011, 42089135000511, 42089326008312, 42089101002414, 12089130000638, 12089130000641,42089326002314 & 42089340001614
Witness	Examined for the Defendants: -Nil -
List of D	ocuments Exhibited for the Defendants: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Javaregowda

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Javaregowda

Case brief

What is this about?

What did the court decide?

What the court decided

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