Allowed

Bank of Baroda v. M/S A.B. Agro

DRT29 Apr 2026OA/2191/2022

Case brief

AI extract

What is this about?

The Presiding Officer allowed the Debt Recovery Tribunal applicant Bank of Baroda's application for recovery of Rs. 3.61 crore advanced as term loans and WCTL to the defendant business, with definitive orders on the liability scope of guarantors and heirs, directions for issuance of recovery certificate, and appearance for distribution of sale proceeds.

What did the court decide?

Recovery of Rs. 3,61,74,703.31p allowed with costs; Recovery Certificate issued; parties directed to appear for distribution of proceeds.

Bank of Baroda versus M/S A.B. Agro — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 2191/2022 Date of Institution: 03.10.2022 Date of Decision: 29.04.2026

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Bank of Baroda having its branches all over India and a branch at Plot No.1, Pratap Nagar, G.T. Road, Amritsar, Punjab.

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……..Applicant

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Vs.

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M/s A. B. Agro, a proprietorship concern situated at Village Mianwind Tehsil Khadur Sahib, Distt. Tarn Taran, Punjab, through its proprietor Sh. Amarbir Singh.

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Sh. Amarbir Singh s/o Sh. Baldev Singh, proprietor M/s A. B. Agro situated at Village Mianwind Tehsil Khadur Sahib, Distt. Tarn Taran, Punjab.

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2^nd Address: r/o H.No.5400, Gali No.1, Plot No.2, Gobind Nagar, Amritsar, Punjab.

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Smt. Harpreet Kaur w/o Late Sh. Gagandeep Singh, r/o H.No.5400, Gali No.1, Gobind Nagar, Mandir Wala Bazar, Sultanwind Road, Amritsar, Punjab.

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Smt. Mandeep Kaur w/o Sh. Amarbir Singh, r/o H.No.5400, Gali No.1, Gobind Nagar, Mandir Wala Bazar, Sultanwind Road, Amritsar, Punjab.

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Sh. Gagandeep Singh s/o Sh. Baldev Singh Matharu since deceased through his legal heirs: -

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a. Smt. Harpreet Kaur w/o Late Sh. Gagandeep Singh, r/o H.No.5400, Gali No.1, Gobind Nagar, Mandir Wala Bazar, Sultanwind Road, Amritsar, Punjab.

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……….Defendants

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Advocates

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Mr. Kamal proxy counsel for Sh. C.S. Pasricha, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 30.07.2025 .

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OA for the Recovery of Rs.3,61,74,703.31p with interest from 03.10.2022.

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ORDER

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Bank of Baroda has filed this application under Section 19 of the

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Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the

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recovery of Rs.3,61,74,703.31p with interest against M/s A. B. Agro and others (defendants).

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Bank’s case is that on 15.06.2018, it had granted Term Loan of Rs.300.00 Lacs to defendant No.1 through its proprietor i.e. defendant No.2 for Business purpose. To secure the Term Loan of Rs.300.00 Lacs, Defendant Nos.2 and 5 had mortgaged their property (fully detailed in para No.5.7 of the application). Defendant Nos.3 to 5 stood as guarantors vide guarantee agreement dated 15.06.2018. Again on 30.03.2021, at the request of the defendants, bank granted a W.C.T.L. of Rs.57.60 Lacs under B.G.E.L.C.S. Scheme to defendant No.1 through its proprietor i.e. defendant No.2 for Business Purpose. Defendant Nos.2 and 5 had extended the charge over the property mortgaged. Both the loan facilities were chargeable at different rates of interest. Defendants had duly acknowledged their liability towards the debt on 09.07.2020. On 15.11.2022, a sum of Rs.3,61,74,703.31p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application. 3. On 23.12.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 30.07.2025, they were proceeded ex parte . 4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Ishparkash Singh, Senior Manager along with the loan and security documents and marked them as Exhibit A-1 to A-46. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the total loan of Rs.357.60Lacs and on 15.11.2022, a sum of Rs.3,61,74,703.31p was due.

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Accordingly, the application of the bank for the recovery of Rs.3,61,74,703.31p (Rupees Three Crores Sixty One Lacs Seventy Four Thousand Seven Hundred Three and Paise Thirty One Only) i.e. Rs.2,96,38,663.24p in Term Loan with interest @11.15% per annum and Rs.65,36,040.07p in Term Loan-B.G.E.L.C.S. with interest @7.65% per annum (both facilities) with monthly rests from 03.10.2022, till the date of payment is hereby allowed with costs. The liability of the legal heirs of defendant No.5 would be limited upto the extent of the property inherited by them from Sh. Gagandeep Singh (now deceased), whereas liability of defendant Nos. 3 and 4 would be limited to the extent of clearance of dues in Term Loan of Rs.300.00 Lacs and liability of defendant Nos.1 and 2 would be joint and several. Bank can recover its dues by the sale of mortgaged property fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendant Nos.1 to 4 accordingly.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 02.06.2026, who is directed to distribute the sale proceeds of the mortgaged property and hypothecated assets as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 29.04.2026 Presiding Officer DRT-1, Chandigarh

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MANOJ KALRA

Bank of Baroda v. M/S A.B. Agro

Case brief

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Bank of Baroda v. M/S A.B. Agro

Case brief

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