Allowed

Karnataka Gramin Bank v. Sangamma

DRT17 Jul 2026TA/30/2025

Case brief

AI extract

What is this about?

In an exparte application for recovery certificate under the RDB Act, the Tribunal found the bank's claim of default proven. It allowed the application, awarding recovery of loan dues with reduced interest at 6% p.a., against the legal heirs and mortgaged property.

What did the court decide?

Recovery certificate granted for Rs.22,11,925.48 with 6% p.a. simple interest; authorized joint/several recovery against defendants 2-4 and the mortgaged property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 17^th Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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TA. No.30/2025

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BETWEEN:

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Karnataka Grameena Bank Jewargi Branch Taluk Jewargi, Dist. Kalaburagi-585310 Through its Branch Manager Mr. Pradeep Tigadi

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… APPLICANT

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AND:

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Smt. Sangamma W/o. Siddanna halli Since deceased through her legal heirs Defendant nos.2 to 4 below

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Mr. Mallesh Gowda S/o. Siddanna Halli Age: 55 years Having address at: Janivaar, Rasanagi, Jevargi, Dist. Kalaburagi-583310

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Mr. Ninganna S/o. Siddanna Halli Age: 53 years Having address at: Janivaar, Rasanagi, Jevargi, Dist. Kalaburagi-583310

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Mr. Gurubasappa S/o. Siddanna Halli Age: 50 years

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TA. No.30/2025

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Having address at: Janivaar, Rasanagi, Jevargi, Dist. Kalaburagi - 583310 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Naushad A K 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 for seeking issuance of Recovery Certificate against the defendants for Rs.22,11,925.48 (Rupees Twenty Two Lakh Eleven Thousand Nine Hundred Twenty Five and Forty Eight Paisa 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 deceased defendant No.1 along with defendant Nos. 2 to 4 availed credit facility of Rs.4,00,000/- and crop loan for a sum of Rs.2,50,000/- for agricultural purpose.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

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TA. No.30/2025

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It is further contended that, despite availing the credit facility, 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 account 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 14.11.2025.

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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 A1 to A19 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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TA. No.30/2025

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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 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 security interest as claimed by the applicant bank and the defaults committed in the account. 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 above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility was availed for agricultural purpose and also that 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%

p.a.(simple).

TA. No.30/2025

In the result, TA.No.30/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.22,11,925.48 (Rupees Twenty Two Lakh Eleven Thousand

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Nine Hundred Twenty Five and Forty Eight Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants No.2 to 4 and to the extent of inheritance of any estate from the deceased borrower, 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 Nos.2 to 6 jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to proceed against the defendants No.2 to 4 jointly, severally, personally and their other assets are liable for all such amounts due under the loan account. iii) The applicant bank is allowed cost of the proceeding which applicant to file cost memo within 7 days from the date of receipt of the order.

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TA. No.30/2025

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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

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with 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 of DRT (Procedure) Rules, 1993.

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

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Sd/(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Bandenawaj R Mulla, Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit Number
1	Letter issued by defendant No.2 to 4 confirming that they are the legal heirs of defendant No.1	A1
2	Sanction letter dated 14.02.2013	A2
3	Loan agreement dated 25.03.2013 along with English translation	A3
4	Simple mortgage deed dated 25.03.2013	A4
5	Mortgage deed dated 22.08.2014	A5
6	Letter of Revival dated 31.03.2015	A6

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TA. No.30/2025

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7	Letter of Revival dated 06.04.2016	A7
8	Letter of Revival dated 22.03.2019	A8
9	Letter of Revival dated 14.12.2021	A9
10	Letter of Revival dated 14.11.2024	A10
11	Loan application dated 29.07.2016	A11
12	Memorandum of agreement for agricultural loans dated 29.07.2016	A12
13	Letter of Revival dated 14.06.2019	A13
14	Letter of Revival dated 29.04.2022	A14
15	Letter of Revival dated 24.04.2025	A15
16	Legal notice dated 22.05.2025	A16
17	True extract of statement of accounts pertaining to the defendants’ aforesaid loan accounts No.0221536030013	A17
18	True extract of statement of accounts pertaining to the defendants’ aforesaid loan account No.41022354176319	A18
19	Combined statement showing total outstanding liabilities	A19

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Gramin Bank v. Sangamma

Case brief

What is this about?

What did the court decide?

Karnataka Gramin Bank v. Sangamma

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

All orders in this case

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