Allowed

Bank of Baroda v. M/s A.A. Associates

DRT5 Sept 2026OA/36/2025

Case brief

AI extract

What is this about?

An applicant bank, Bank of Baroda, filed an application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 against two respondents who were borrowers of term loans. The debtor failed to appear despite multiple notices and summons including publication. The Tribunal held that documents and bankers' books are admissible evidence and that the defendants failed to deny liability. The application was disposed of in their absence, determining the debt and directing the execution of a Recovery Certificate for realization through the Recovery Officer.

What did the court decide?

The defendants are ordered to jointly and severally pay the applicant bank Rs. 21,96,719.92 along with pendente-lite and future interest @ 9.10% p.a. with compounded monthly rests from 15.01.2025 till realization, with costs. A Recovery Certificate was issued to be uploaded.

Bank of Baroda versus M/s A.A. Associates — Contract and Commercial Disputes | DRT (2026)

OA 36 of20251JI

DRT, PATNA

Debts Recovery Tribunal, Patna

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Karpuri Thakur Sadan, Aashiana Digha Road Patna-800025

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Presiding Officer : Shri Kaushalendra Yadav

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OA Case No. 36 of 2025

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of Baroda, BO- Tilak Maidan Road, District- Muzaffarpur, Bihar

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,Applicant

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M/s A. A. Associates (Proprietor- Sri Varun Kumar), at C/o Devendra Singh, H.No.30, Ward No.10, Bharwani, Muzaffarpur, Bihar 843 1 19

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Sri Varun Kumar, S/o Devendra Singh, R/o H.No.30, Ward No.10, Bharwani, Muzaffarpur, Bihar 843 1 19- Borrower

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. . . . . . . Defendants

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Present:

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For the Applicant Shri Jyoti Prakash, Advocate For the Defendants None

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Dated:05.09.2026

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JUDGMENT

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The Applicant bank has made this application u/s 19 of the Recovefy of Debts and Bankruptcy Act, 1993 (here-in-after referred to as Act) on 15.01.2025 against the defendants to recover its debts from defendants of Rs.21,96,719.92 as on 29.12.2024 along with pendente-lite and future interest at the contractual rate from 30.12.2024 with costs till realization.

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The application has been filed with the contention that the applicant bank, is a body corporate, carries on the business and is competent to file the suit through various branches including the applicant.

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Defendant no.1 is a proprietorship firm of which defendant no.2 is the proprietor. Defendants approached the applicant bank for sanction of term loan of Rs.28 Lakh under Baroda Commercial Vehicle Loan, vide loan application dated 02.12.2019, which was sanctioned by the applicant bank on 04.12.20i9 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents and also hypothecated the vehicle in favour of the applicant bank, details of which are given in OA

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t)rest I,.,.. I) #icer IhIILII11)1U!I R e %FIbELIIiI T I i IbFH) IIEn8)

DRT, PATN A

OA 36 of2025jJI

Defendants again approached the applicant bank for sanction of term loan of Rs.5 Lakh under Baroda Covid Emergency Credit Line, vide loan application dated 18.09.2020, which was sanctioned by the applicant bank on 18.09.2020 on various terms and conditions, as stipulated in the sanction letter, which were duly accepted by the defendants. To secure the loan facilities defendants have executed various loan and security documents in favour of the applicant bank, details of which are given in OA. At the request of the defendants, the applicant bank has also sanctioned another Term Loan of Rs.2,03,194.52 on 27.07.2021. The defendant no.2 has also executed letter of acknowledgement of debt on 01.07.2022.

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After availing the sanctioned credit facilities, the defendants became irregular in repayment of their dues as per agreed terms and failed to adhere to the financial norms of the bank and avoiding the repayment of its dues to the bank, in spite of several assurances given by it to the applicant bank resulting in the account turning as NPA on 30.03.2024.

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Since, the defendants failed and neglected in spite of several reminders to make payment of the dues recoverable to the bank, hence this application has been filed by the bank.

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The total liability in the loan account is Rs.21,96,719.92 as on 29.12.2024 with pendente-lite and future interest contractual rate &om 30.12.2024 till the realization.

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This Tribunal issued summons/notices copies of application & paper book to the defendants by registered/speed post on 24.01.2025, requiring them to show-cause within 30 days of the service U/s 19 (4) of the Act & Rule of the DRT [Procedure] Rules, 1993. Again, notice was issued to the defendants on 17.04.2025, which was served by way of affixation of notice at the conspicuous part of the premises of the defendants in presence of the borrower and a photograph has been attached with the affidavit filed by the applicant bank. But the defendants have not appeared, hence, the Registry of this Tribunal has ordered to publish the notice in newspaper and subsequently, substituted

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I)eDU i+uva Very lloaua4 PATNA

DRTq PATNA

OA 36 of 2025jJI

service by publication of notice by way of advertisement in newspaper was also made against the defendants on 11.01.2026 in “Dainik Jagran” and “The Times of India” newspapers.

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Despite the registered summons/notices and publication of notice in newspaper, the defendants have not appeared before this Tribunal to contest the case. The sufficient time has been given to the defendants to defend their case, but they failed to appear and to file WS, hence, the Tribunal has passed an order to proceed ex-parte against the defendants on 08.05.2026.

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To prove its case, the applicant Bank has referred various certified photocopies of documents before this Tribunal. The applicant bank has also given evidence on affidavit by way of affidavit by Shri Durga Nath Jha, Chief Manager of the applicant bank. The details of documents are as follows:

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SI.No	Descriptio Document Photocopies	nof s	1 Date of IExecution	Amount (in Lakh'	Signature Executants	of	1Ex./ Ann. No.
	o			n8i	Defendants
	SanctioII			28.00	Bank accepted defendants	and by
	DPnote		04.12.2019	28.00	Defendants
	Letterof lroprietorshi1	sole	04.12.2019		Defendants
	Letter ofinstall	ment	04.12.2019		Defendants
	Irrevocablepo attorne'	wer of	04.12.2019		Defendants
	Lettero		04.12.2019	e
	Declaration undertaking authorit	cum cum	04.12.2019	e
9	Composite agreement		04.12.2019	e			9
10	Agreement lowerofattorn	plus e'	04.12.2019	e			10
11	Instrument hypothecati vehicle	of onof	04.12.2019	e			11
12	Loanapplicatio	n	18.09.2020	5.00	Defendants		12
	Letter ofsancti	on	18.09.2020	5.00	Defendants
	DPnote		18.09.2020	5.00	Defendants
	Letterof lroprietorshi	sole	18.09.2020		Defendants
	Letter ofinstall	ment	^18.09.2020	5.00	Defendants
	Undertakin}		18.09.2020	5.00	Defendants
	Letterofundert	akinJ	18.09.2020		Defendants

OA 36 of 20251 J

DRT. PATNA

19	Loan cum hypothecation :ment a		Defendants	19
20	o Letter acknowledgementof debt		Defendants	20
21	Legalnotice	08.10.2024	Bank’s adv	21
22	of Statement accounts		Bank	22

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Heard arguments and perused the case record.

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Ld. Counsel of applicant bank submitted that the defendants have taken the loan and utilized the same and also executed the various loan documents to secure the loan. Further, submitted that the claim of the bank has been proved by documentary evidence. All the transactions were entered in the ledger of the loan accounts in the name of the defendant duly maintained by the applicant bank in its usual course of business. The interest /compound interest has been charged at such rates, and capitalized at such periodical rests as are permitted by and do not run counter to the directives of Reserve Bank of India.

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It is further submitted by Id. Counsel of applicant bank that there is no stay granted by any Higher Court, in respect of the proceedings of the present OA and requested to issue recovery certificate, as claimed for, in OA.

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It has been established that defendants are living and carrying on their business in the state of Bihar. Cause of action also arose in the State of Bihar. The said claim on the date of filing of application exceeded Rs.20 laos. The applicant bank is functioning within the jurisdiction of this Tribunal. Therefore, this Tribunal has territorial as well as pecuniary jurisdiction to adjudicate upon the present application.

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On the issue of Limitation, to prove it, the applicant bank has submitted that the applicant bank has declared the account as NPA on 30.03.2024, whereas the present application has been filed on 15.01.2025. Even, it is counted for the purpose of Limitation, then it is established that the applicant bank has filed the case within the limitation period. As such, it is established that the present application has been filed well within the period of limitation.

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,„^eel Pres idinq Is CbIHW Dd,UNI;h3ll

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13 . Shri Durga Nath Jha, Chief Manager of the applicant bank has filed the affidavit in support of contents of application and the documents as evidence and proved on oath the pleadings and documents of the applicant bank as stated above.

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Section 19(3) of the Recovery of Debts and Bankruptcy Act, 1993 provides that the application u/s S.19 (1) shall be accompanied with true copies of all the documents relied on in support of the claim.

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The rule 12 (10) of the Debt Recovery Tribunal (Procedure) Rules, 1993, provides that if the defendant denies his liability to pay the claim made by the applicant, the tribunal may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of the application and the documents as evidence.

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The rule 12 (11) of the aforesaid Rules, provides that the provisions contained in section 4 of the Banker’s Books evidence that Act, 1891 (18 of 1891) shall apply to a certified copy of an entry in a Banker’s Books furnished along with application filed under sub section 1 of section 19 by the applicant.

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Section 4 of Banker’s Books evidence Act, 1891 runs as underS.4. Mode of proof of entries in bankers’ books.–Subject to the provisions of this Act, a certifIed copy of any entry in a banker’s book shall in all legal proceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by law admissible, but not further or otherwise.

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As such the certified true copies of the documents are admissible in evidence. The statement of account maintained in the ordinary course of business is not only admissible but shall be taken as the correct statement of account, more so since the entries in the statement of account have not been challenged.

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On perusal of the application, documents, affidavit and on consideration of the arguments, it is proved that the defendants have applied for loan and the bank had sanctioned the loan and to secure the loan and for repayment of loan amount with interests etc., the defendants have executed various loan documents, as stated in the application and proved by aforesaid evidence. Defendants have neither denied the utilization of funds advanced by applicant bank nor have pointed out any specific error and discrepancy in the Statement of Account

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Pr,,id, , J \V dI ve Reco ATSA

OA 36 of20251JI

DRT, PATNA

The evidence discussed above goes to establish that the amount of loan as mentioned in the O. A., was availed by the borrower under the agreed terms and conditions for repayment with interest. The balance amount till 29.12.2024 has been proved to be Rs.21,96,719.92 only by way of statement of accounts. There is nothing to prove the amount more than that disclosed in the aforementioned statement. As such this amount is recoverable till full and final realization of the claim.

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In my view, facts of the case stand proved by evidence of the applicant bank. Accordingly, the applicant bank is entitled to recover from defendants jointly and severally of Rs.21,96,719.92 along with pendente-lite and fbture interest @ 9.10% p.a. with compounded monthly rests from 15.01.2025 (The date of filing of this OA) till realization. So the final order may be passed accordingly, to meet the ends of justice.

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ORDER

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In the result, the application of the applicant bank is allowed and debt is determined with costs against the defendants. The defendants are hereby jointly and severally, ordered to pay the applicant bank its debt amounting to Rs.21,96,719.92 along with pendente-lite and future interest @ 9.10% p.a. with compounded monthly rests Rom 15.01.2025 (The date of filing of this OA) till realization of the entire sum due and recoverable with costs.

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It is made clear that any amount deposited by the defendants, be deducted in the claim amount, if not deducted.

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Defendants are debarred from transferring, alienating encumbering or otherwise dealing with or disposing of the mortgaged or hypothecated or any other properties and assets without paying the aforesaid adjudicated dues to the applicant bank to secure the ends of justice. The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceedings in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Barkruptcy Act 1993. The applicant may submit the certified copy of this Judgment and the Recovery Certificate before the Registrar/Sub- Registrar to endorse the charge over the secured assets. A / vR

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FeSI brI rig U yi \ ccr Wb Recovery Trrbunar PATNA

DRT, PATNA

OA 36 of20251JI

Let a certificate of recovery be drawn up forthwith and put up for signatures in terms of provisions contained in Section 19(22) of the Act to be issued, on the basis of the order of the Tribunal to the Recovery Officer. The Recovery Officer shall realize the amount as per the certificate in the manner and mode prescribed under the Act from the defendants, by sale of mortgaged/ hypothecated assets as well as other personal movable/immovable assets of the defendants. The Recovery OffIcer will issue demand notice to the CertifIcate debtors only after the proof of compliance under rule 16 of DRT (Procedure) Rules 1993, is submitted by the applicant. If The Applicant /CertifIcate holder fails to comply with directions of the Recovery OffIcer, the execution may be dismissed for non-prosecution. The copy of this judgment be uploaded in the website of the Tribunal.

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Parties are directed to appear before the Recovery Officer, DRT, Patna on 22.10.2026. The order be communicated accordingly.

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Judgment signed, sealed, dated and pronounced in the open court on 05th day of September, 2026.

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Dictated & corrected by me.

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\ 111PI:>

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[Kaushalendra Yadav] Presiding Officer Debts Recovery Tribunal, Patna De+ef;Jv•Har na:

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DUB Recovery Tribuna FATWA

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FORM NO. 9 [See Regulation 24( 1)]

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DEBTS RECOVERY TRIBUNAL PATNA 2nd Floor9 (A. B & F Wing) Karpuri Thakur Sadan9 Kendriya Karamchari Parisu (GPOA), Ashiana Digha Road, Patna800025.

RC No, 278/2026 IN

Case No: OA/36/2025

In the Matter of:

(CH- 1) BANK OF BARODA BO TILAK MAIDAN ROAD, MUZAFFARPUR ,BIHAR -0

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Applicant(s)

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(CD- 1) M/S A.A. ASSOCIATES

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Proprietor Sri varun Kumar at C/o- Devendra Singh H.No. 30 Ward No 10, Bharwani, Muzaffaq)ur ,BIHAR -843 1 19

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Defendant(s)

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(CD- 2) SRI VARUN KUMAR

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SON OF DEVENDRA SINGH R/0- H NO 30 WARD NO 10 BHARWANI MUZAFFARPUR BIHAR 843 1 19

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ificate for Rs2196119.92 1 Ru

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Nineteen And Paise Ninety Two OnI)a

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In terms of final order dated 05/09/2026 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover a sum of Rs. 2196719.92 along with cost, expenses and interest from the 15/01/2025 i.e. date of filing / with efFective date of the OA/36/2025 and future interest from order date till the date of realisation in full, jointly or severally from the Certificate Debtors, hereinafter referred to as:-

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Sr.no	CDName	le	Int. rpe/IVlode	Int. ,te	Effective Date	Order Am'„nt<R’ Date	)ILT::w	Interest gdl Date)	RC Lmount(Rs.)
	A.A SSOCIATES		:ompound lterest jM”'thly)	10	l15/01/2025	105/09/202612196719.92	Fointly )verany	Interest .Son Order Date	196719.92
I	iSRI VARUN KUMAR		)mpound nterest lonthly)	10	115/01/2025 l	05/09/2026 P 196719.92	Fointly ;everally	Interest hS on Order Date	196719.92

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In case of failure to pay the aforementioned adjudicated amount within 30 days, same shall be recovered from the sale of the mortgaged/hypothecated assets as well as other personal movable/ Immovable assets of the certificate debtors.

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The mortgaged or hypothecated assets to secure the loan in question are hereby attached and shall be subject to the final order under the recovery proceeding in pursuance of the Recovery certificate issued under Section 19(22) of Recovery of Debts and Bankruptcy Act 1993. Parties are directed to appear before ASHISH KUMAR , Recovery Officer, DEBTS RECOVERY TRIBUNAL PATN A on 22/10/2026.

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Sections 25 to 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtors.

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This Certificate has been issued under my signature and seal of the Tribunal on this 09/09/2026

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Qc. RegIstrar RqHn Debts Recovery Tribunal, Prtna @TBT+3f£mn HRT

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[ PRESIDING OFFICER DEBTS RECOVERY TRIBUNAL PATNA

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FORM NO. 10

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[See Regulation 24(2)]

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DEBTS RECOVERY TRIBUNAL PATNA

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2nd Floor, (A. B & F Wing) Karpuri Thakur Sadan, Kendriya Karamchari Parisar (GPOA), Ashiana Digha Road, Patna-800025 .

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SCHEDULE TO RECOVERY CERTIFICATE MEMO OF COSTS

RC No. 278/2026

Case No: OA/36/2025

Applicant(s): BANK OF BARODA Versus

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Defendant(s): M/S A.A. ASSOCIATES

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Sr.No	e	Amount inRs
	Feeontheapplication	mo
	ProcessFees(Inc. Publication)	10
3	@dvocateFees	@
	r	b
5	iscellaneousCharges	[0
	TotalCosts:Rs	m2

Place: PATNA

Date: 09/09/2026

q//

PRESIDING OFFICER

DEBTS RECOVERY TRIBUNAL PATNA

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rrdbldl i-ti Ujjicd1

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Note: Strike out whichever is not applicable

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IIIIIII eI11CI Iig R e V;iI11;}; f r r 1 EI IIIIIin

Bank of Baroda v. M/s A.A. Associates

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/s A.A. Associates

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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Case details

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