KARNATAKA BANK LIMITED vs Lokappa Gowda on 30 January 2026

**FINAL ORDER**

The present TA has been filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of **Rs.13,24,292/- (Rupees Thirteen Lakhs twenty-Four Thousand Two Hundred and Ninety-Two only)** together with costs, interest, etc.

2. The case of the Applicant Bank is that the Defendants own a coffee estate in Chikkamagaluru, the said estate is known as veerabhadreshwara Estate. The Defendant No.1 is the Power of Attorney Holder for Defendant No.2 and both have approached the Applicant Bank for overdraft Kisan credit facility. Accordingly, the Applicant Bank sanctioned **I. Overdraft Kissan Credit facility of Rs.6,20,000/- on 30.05.2013** and **II. Term Loan of Rs.3,00,000/- on 09.09.2013** for the purpose of Agriculture Development, in terms of the loan agreements. In order to secure the loan, the Defendants side have executed documents viz., composite Agreement for Kisan Credit 3TA.No.2/2019

Card Facility and Term Loan Facility, Memorandum of Deposit of Title Deeds, Declaration, Consent Letter, Letter of Authority, Term Loan Agreement, Hypothecation Agreement, Acknowledgement of Debt etc.,

3. Further, the Defendants side have agreed to repay the above loans with variable rate of interest, as applicable from time to time as per the directions of the Head Office/Central Office of the Applicant Bank and penal interest in case of default and keep the accounts regular by paying installments as and when due to the satisfaction of the Applicant Bank, as detailed in the TA by the Applicant Bank.

4. The Defendants after utilising the said loans have failed to adhere to the terms and conditions of sanction. The Defendants have also failed to service the interest in respect of Term said loan. The Defendants were very irregular in adhering to the repayment schedule of the loan granted and also failed to adhere to their terms and conditions applicable to business loan. The Defendants neither chooses to repay the installments nor the accrued interest thereupon. Therefore, the Applicant Bank issued legal notice to the Defendants on 08.11.2017 calling upon the Defendants to clear entire outstanding dues. In spite of receipt of repeated remainders and legal notice, the 4TA.No.2/2019

Defendants have failed to pay the outstanding dues and hence the recovery process is initiated to recover the dues.

5. In the light of these factors, it is contended by the Applicant Bank that Defendants are jointly and severally liable to pay a total sum of **Rs.13,24,292/- (Rupees Thirteen Lakhs Twenty-Four Thousand Two Hundred and Ninety-Two only).**

6. After filing this TA, Summons were sent and served to the Defendants. When the Defendants were called out, they remained absent and placed ex parte.

7. To prove the case of the Applicant Bank, its Branch Manager and Authorized Representative of Agriculture Development Branch, Sri Ashok S, has filed his affidavit by way of evidence the same was considered as evidence of AW.1 and marked at Ex.A1 and list of documents came to be marked at Ex.A2 and 19 documents came to be marked at Ex.A3 to A21.

8. No evidence on behalf of the Defendants.

9. Arguments of Learned Counsel for the Plaintiff/ Applicant Bank heard and perused the records of the case.

5TA.No.2/2019

10. Following points arise for my consideration:

1. 1) Whether Plaintiff/Applicant Bank proves its case as contended in the plaint/application?

2. 2) What Order?

11. For the following reasons, I answer the above-referred points in the following manner:

**R E A S O N S**

12. The Branch Manager and Authorized Representative of Agriculture Development Branch of the Applicant Bank came to be examined as AW.1. His affidavit by way of evidence reiterated the facts pleaded in the plaint and his affidavit is also corroborated by the above-referred Ex.A3 to A21 which clearly establish the case of the Applicant Bank to allow the present TA. Added to this the Defendants remained absent, hence it is to be construed that Defendants have admitted the entire case pleaded by the Applicant Bank in the present TA.

13. Therefore, for these reasons, present TA is to be allowed with costs as sought by the Applicant Bank.

6TA.No.2/2019

ORDER

Present TA stands allowed, with interest, penal interest and cost.

Defendants are jointly and severally liable to pay a sum of **Rs.13,24,292/-** along with cost, interest **@6% p.a.** and **penal interest @2% p.a.** from the date of Application till the realization of the entire amount to the Applicant Bank.

In the event of failure of the Defendants to pay the said TA amount, the Applicant Bank is at liberty to sell the Schedule Properties mentioned in the main application in accordance with law as sought by the Applicant Bank in the TA.

In spite of sale of the Schedule Properties, if the TA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the persons and other properties of the Defendants in accordance with law.

Applicant Bank shall file latest Memo of Calculation of TA amount together with interest, costs etc., to be paid by Defendants duly taking into account the amount/s, if any, paid by the Defendants and/or amount realised by sale of assets, etc., during the intervening period after filing the TA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendants to the Applicant Bank.

7TA.No.2/2019

Office is directed to issue Recovery Certificate as sought by the Applicant Bank in the TA and do the needful as required under the law forthwith.

The Office is directed to issue, as far as possible, free copy of this order to the parties concerned.

(Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 30^th day of January, 2026)

**(Imtiaz Ali)** **Presiding Officer** **DRT-I, Bengaluru**

ANNEXURES

Witness Examined for the Applicant Bank:

AW-1 : Sri Ashok S

The Branch Manager of Applicant Bank

List of Documents Exhibited for the Applicant Bank:

- Ex.A-1 : Affidavit of AW-1

- Ex.A-2 : List of Documents

- Ex.A-3 : Sanction letter

- Ex.A-4 : Composite Agreement for Kisan Credit Card Facility

- Ex.A-5 : Letter dated 05.07.2013 confirming the types of crops being grown by them

- Ex.A-6 : Memorandum of Deposit of Title Deeds

- Ex.A-7 : Sanction order dated 09.09.2013

- Ex.A-8 : Declaration dated 12.09.2013 that there is not litigation pending against them 8TA.No.2/2019

Ex.A-9 : Consent letter dated 12.09.2013 in favour or bank Ex.A-10 : Letter o authority dated 12.09.2013 extending the mortgage created on 05.07.2013 in favour of the Applicant Bank for the overdraft kisan credit facility to the term loan Ex.A-11 : Term loan Agreement dated 12.09.2013

Ex.A-12 : Hypothecation agreement dated 12.09.2013 hypothecating the coffee and pepper crops Ex.A-13 : Hypothecation agreement dated 12.09.2103 hypothecating the coffee crops Ex.A-14 : Acknowledgement of Debt dated 27.05.2016 for having availed the crop loan Ex.A-15 : Acknowledgement of debt dated 27.06.2016 for having availed the crop loan Ex.A-16 : Acknowledgement of debt dated 23.01.2019 for having availed the crop loan Ex.A-17 : Acknowledgement of debt dated 23.01.2019 for having availed the term loan Ex.A-18 : The legal notice dated 08.11.2017

Ex.A-19 : Postal acknowledgment for having received the notice Ex.A-20 : True extract of the statement of Account of ODKC

Ex.A-21 : True extract of the Statement of Account of the Term Loan **Witness Examined for the Defendants:**

- Nil -

**List of Documents Exhibited for the Defendants:**

- Nil -

4.30.01.26 (Imtiaz Ali)

DRT-I, Bengaluru

.R.