Allowed

Punjab National Bank v. Vasanthagouda Shanmukhagouda Patil

DRT30 Jun 2026OA/869/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application seeking issuance of a Recovery Certificate under Section 19 RDAB for a defaulted Kisan Credit Card loan. As defendants appeared ex parte, the Tribunal found the claim proven, reduced the interest rate to 6% per annum for agricultural purposes, and directed recovery from joint and several liability.

What did the court decide?

Recovery Certificate issued for aggregate sum of Rs.26,36,620.44 with interest at 6% p.a. simple from filing date; recoverable jointly and severally from defendants and schedule properties.

Punjab National Bank versus Vasanthagouda Shanmukhagouda Patil — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.869/2023

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BETWEEN:

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Punjab National Bank #R.S. No.98/4, 3^rd Floor, Centrum mall, Gokul Road, Hubli-580030

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Respresented By Its Senior Manager

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…APPLICANT

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AND:

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Sri. Vasanthagouda Shanmukhagouda Patil

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Aged About 79 Years,

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Son of Shanmukhagouda Patil,

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Residing Of, Harlapur Village, Gadag Taluk Gadag District-582115

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Sri. Bharamappa M. Kidiyappanavar aged About 65 Years, Residing of, Harlapur Village, Gadag Taluk Gadag District-582115

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Smt. Shantavva, aged About 61 Years, Wife of Late Bharamappa Mallappa Kidiyappanavar, Residing at Harlapura, Shirahatti, Gadag Taluk, Gadag District-582115

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Ms. Kasturevva Kidiyappannavar Aged About 27 Years, Son of Late Bharamappa Mallappa Kidiyappanavar, Residing at Harlapura, Shirahatti, Gadag Taluk, Gadag District-582115

...DEFENDANTS

OA 869/2023

Counsel on record/appeared for:

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Applicant : S.R. NARAYAPPA Defendants : Exparte

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: 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.26,36,620.44/- (Rupees Twenty Six Lakhs Thirty Six Thousand Six Hundred Twenty and Paise Forty Four Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendants availed an kisan credit card (KKC) scheme loan of Rs.18,00,000/- (Rupees Eighteen Lakhs Only) for the purpose of purnching seeds, fertilizers, pesticides, labour charges and post harvest expenses. 3. It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with simple Hypothecation Agreement.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting

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OA 869/2023

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in defaults in repayment 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, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 09.6.2025.

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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-11 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 the 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

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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

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OA 869/2023

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remains unrebutted as defendants remained exparte. The

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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 as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this 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 facility

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are availed by defendants for agricultural purpose and also that

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OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a. (Simple).

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In the result, OA.No.869/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.26,36,620.44/- (Rupees Twenty Six Lakhs Thirty Six

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OA 869/2023

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Thousand Six Hundred Twenty and Paise Forty Four Only) with further interest @6% 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

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to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants jointly severally and personally and their other assets are liable to be proceeded against for the balance amount.

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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

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order and transferred to Recovery for execution.

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

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Communicate a copy of the order to the parties concerned

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

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OA 869/2023

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (ms), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 30^th day of June, 2026].

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Sd/(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: Narinder Paratp Singh, Senior Manager, of the Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Application form for agricultural credit dated 01.10.2016 from the defendant No.1
A2	Letter of sanction of KCC loan dated 01.10.2016 duly acknowledged by the defendants
A3	Hypothecation agreement dated 01.10.2016 for a sum of Rs.18.00 lakhs executed by the 1^stdefendants
A4	Letter of undertaking dated 01.10.2016 for a sum of Rs.18.00 lakhs executed by the 1^stdefendants
A5	Letter of consent dated 01.10.2016 for a sum of Rs.18.00 lakhs executed by the 1^stdefendants
A6	Deed of guarantee dated 01.10.2016 for a sum of Rs.18.00 lakhs executed by the 2^nddefendants
A7	Mortgage deed executed on 26.09.2016 for a sum of Rs.18.00 lakhs executed by the first defendant
A8	Balance and security confimation letter dated 06.09.2019 confirming a balance of Rs.16,99,726/-in favour of the bank
A9	Balance and security confimation letter dated 31.03.2022 confirming a balance of Rs.23,67,639/-in favour of the bank
A10	Recall notice dated 04.08.2022 issued by the bank
A11	Accounts extract A/c.No.

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OA 869/2023

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0177008800032336 / AE-6764

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

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Sd/(T. RAJESH)

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PRESIDING OFFICER

Punjab National Bank v. Vasanthagouda Shanmukhagouda Patil

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Vasanthagouda Shanmukhagouda Patil

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

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