Allowed

Uco Bank v. Shri Ananthan Ramaswamy and Ors.

DRT5 Dec 2024TA/2106/2023

Case brief

AI extract

What is this about?

In an application under Section 14 RDB Act, the Tribunal dismissed the bank's claim against borrowers who defaulted on a home loan. Upon finding that the loan was disbursed directly to the builder and no possession was delivered, the court held the builder liable to repay the dues.

What did the court decide?

Directed Defendant No. 3 to pay Rs.44,28,050.22 with interest and costs within 30 days; recovery from sale of mortgaged property or other assets in case of default.

Uco Bank versus Shri Ananthan Ramaswamy and Ors. — Contract and Commercial Disputes | DRT (2024)

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Before SUSHIL^{KUMARRASTOGI, Presiding Officer} Debts RecoverY^{Tribunal-Il,Delhi}

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TA No.2106/2023

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UCO BANK VS SHRI^{ANATHAN RAIIIASWAMY& ORS.}

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Reserued on :08.11.2024 Pronounced on t 05.l,2.2024

UCO Bank

-^{Applicant bank}

Vs.

Anathan RamaswamY

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Shoba RamaswamY

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AVI Developer^{(India) htt. Ltd.}

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Defendants

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Present: Sh. I.S. Chauhan, Counsel^{appears for} applicant bank.

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None for defendants.

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FINAL ORDER

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This original application^{has been filed by the} applicant bank, on^{20.03.20L7 through Ms. Parul} Srivastava, Branch^{Head of the applicant bank, under} Section ld of the^{Recovery of Debtsand Bankruptcy} Act, 1993 against the^{defendantsfor recovery of a} sum of Rs.44,28,050.22^{together with cost, charges} and^{pendentellite} and^{future interest @ 11.70% p'a.} from date of filing of^{this O.A. till the realizationin} full.

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The brief facts of^{the case are that at the} request of the defendant^{no. 1 & 2 the applicant bank} sanctioned, on^{28.02.2015,a TermLoan under Uco} Home Loan Scheme^{of Rs.44,00,000/-for purchase of} property from defendant no.3'^{In order to avail the}

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TANO. 2106^{of 2023} 2 said loan^facilitY the defendants^{have executed} loaning documents^{dated 28.02.2015'On 27'02'20L5,} defendant no.^{3/builder issuedpermissionto} mortgage the^{Flat no.K-t707, Group Housing Project} AVJ Heights,^{GH'L212, Sector-Zeta-1, Greater Noida,} measuring 1350^{sq. ft. in favour of the applicant} bank. The^{borrowersas well as defendantno'} 3/builder^{has shown its intention and desireto create} an equitable^{mortgageof the above said property in} favour of the^{applicant bank.A TripartiteAgreement} was executed on^{28.02.2015 between the defendant} no. 1 & 2, applicant^{bank and defendant no' 3'}

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It is further^{submitted that the defendants} enjoyed and utilized^{the Loan facility, but failed to} maintain the financial^{disciplineand failed to repay} the due amounts.^{The applicantbank requested the} defendants to^{regularizethe loan account by visits} and letters,^{but there was no response from the} defendants,^{hencethe account was classifledas NPA} on 31.12.2016.^{Therefore,the applicantbank served} a notice dated^{02.02-20L7 to the defendants,} demanding the^{amount due as on that date, but failed} to recover the^{same. Thus, the presentT'A'is} preferred by the applicant^{bank to re@verits dues'}

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On notice^{by this Tribunal,defendantsput} appearance and^{filed their written statement but} failed to file the^{evidence'The Right of the} defendants to^{file evidence was closed by order dated} 08.tL.2024.

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In the^{writtenstatement flled by defendantno'1}

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& 2 it is submitted^{that applicantbank and defendant} tz/ si.

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TANO. 2106 of 2023

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no.3 mlluded with each other to^{cheat the} defendant no.1 &^{2 and the entire liability is that of D-} 3. It is submitted that they^{have bookeda flat with} defendant no.3 builder and^{as per builder and buyer} agreement the^{payment was to be made in phase} wise manner to D-3^{whereas the applicantbank has} disbursed almost entire^{amount to D-3 in one shot. It} is submitted that as^per Tripartite^{agreement,in case} the borrower fails to repay^{the loan amount,the} defendant no.3 is liable to^{pay the dues of the bank} and in case of failure in^{repayingthe amount by D-3,} the applicant bank will be^{entitledto takepossession} of the property. Therefore, it^{is prayedthat the} present OA may be dismissed against defendant^no.l &2.

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The defendant no.3^{has also filed the written} statement. In the written statement^{it is submitted} that disputes and differences arose^betweenthe Directors of the company which affected^{the entire} functioning of the defendant^{no.3. It is submitted that} some of the flats were reallotted^{to different buyers} due to the fault in the^{computer and the company} executed the flat buyers agreement^{in favour of such} allottees, issued them No Objection^{Certificatefor} taking loans against the mortgage^{of said flats and} also entered into Tripartite^{Agreementwith different}

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banks. In the meantime^{some of the intendingbuyers} of the flats lodged reports^{against the company} causing obstruction in the^{affairs of the company' It is} submitted that the^{D-3 is also negotiating to settle the} accounts of such allottees^{with their respectivebanks} and^prays that one^{year time} !e^{granted to D-3. It is} sr\

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TANO.2106of 2023

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submitted that^{the allottees whom the flats} have been allofted but^{possessionhas not been} delivered, they will^{either be allotted another flat or} their loan accounts will^{be settledwith their respective} banks.

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The documentary evidence^{filed by Ms. Parul} Srivastava, Branch^{Head of applicant bank as paper} no. 3 to^paper no. 4 and^{Mr. Milka Bhalla, Branch} Head of applicant bank^{as paper no'9 to paperno.zl4.} 8. Heard the l-d. Counsel^{of applicantbank and} perused the records. From^perusal of the^{record it is} clear that at the time of^{executing loan documentsthe} applicant bank has^{entered into aTripartite} Agreement with the^{builder along with the borrower.} Para (e) of the Tripartite^{agreementis as follows:-}

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" The Builder hereby underbkes^{to issue a letter} favouring the tunk inter-ali4^{giving iE No Objxtion} for the furrowe(s)^{creating wurityin favour of the} Ban& by way of mottgagq^{of the n:ght, title, interest} of the tunk in the^{shares allottd to him/her/them} and of the sid^{flat for repayment of the loan and all} amounb in respst^{therof by the Borrower(s),to} note the charge of the^{tunk on the fiid flat(s) in its} reords as ffiurity^{against the Lun aduancd by the} tunk to the tunower(9^{and not to prmit the} Borrower(s) to transferkncumber^{the sid} Proryfrf; without the^{prior written permission of the tunk' The} Builder hereby^{irrevuabtyand unanditionally} guarantes the due repayment^{to the Bank of all the} amoun9 disbutsd^{to the Buildertogether with all} .A-

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TANO.2t06of 2023

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interes9 and att other^{monies, owing and} Fyable^{by the tunowe(s)to the tun$ in the event} of any breach by^{the builder of any warranty,} reprexnbtion covenant,^{or agrementconbind} herein."

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As^per conditions^{contained in the Tripartite} Agreement at^{para (e), in case of default by the} borrower the amount^{which has been paid by the} borrower to the^{builder has to be returned to the} bank. In the^{present case the borrower has made} default in repayment^{of the EMIs and therefore, as} per condition agreed between the^{parties, the builder} is under obligation to^{return the entire amount which} he has received^{from the borroweror from the} applicant bank in^{lieu of the payment of the} construction of the^{flat. More over, from the perusal} of the entire^{facts it is apparentthat the borrowerhas} taken the loan^{and the loan amounthas been paid to} the builder for construction^{of the flat' The applicant} bank has not claimed^{that the builder in violation of} the terms and conditions^{has handedover the flat to} the defendant no.1^{& 2. The borrower has not taken} any amount in^{his accountand the entire amount has} been^paid to the^{builder. In additionto this the} borrower has also^{paid the margin money to the} builder and also^{paid certain EMIs as mentioned by} the applicant bank.^{The borrower has not got the} possession of the flat. If the borrower^{is directed to} pay the amount which has^{been actually paid to the} builder this will amount^{double penalty on the} borrower. The borrower^{has received no moneyand} has still^paid the^{margin moneyand also ceftain EMIs} -q^/

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i I I t' i I I I : I I

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TANO.2l06of2023⁶

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to the bank and^{has got in returnnothing. In such} circumstances^{and as per agreed terms and conditions} it is only the builder^{who is liable to pay the defaulted} amount to^{the aPPlicantbank'}

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In the light of the^{above discussions, the presentT'A'} deserves to be^{allowed against defendant no. 3'}

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ORDER

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I hereby allow^{this T.A. of the Applicant Bank} and direct the^{defendant no. 3 to pay to the applicant} bank within 30^{days from today, asum of} Rs.44,28,050.22 along^{with cost, expenses and} interest @ 10.2olo from^{the date of fiting of this O'A'} which has become^{T.A. till the date of realization.}

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In case of failure^{to depositthe above amount} within the stipulated^{period, the same shall be} recovered from the^{sale of the mortgagedproperty} Flat bearing no.K-1707,^{Group Housing Project AVJ} Heights, GH-1212,^{Sector-Zeta-1,Greater Noida-} 2Ol3O7 measuring^{1350 sq' ft' In case of short fall,} the same shall^{be recovered from the sale of personal} movable and^{immovable assets of the defendant no'} 3.

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Recovery^{Certificatebe issuedforthwith andbe} sent to Recovery fficer,^{Debts Recovery TribunaFll,} Delhi.

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The registry^{of this Tribunal is hereby directed to} issue free copy of the^{order and send the same to} both the parties. d./

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TANO. 2106 of 2023 7

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Parties are directed^{to appearbefore the Ld.} Recovery Officer, DRT-II,^{Delhi on 05.02.2025.} Pending IAs, if any, stand^disposedof.

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File be consigned to^records.

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C e-l

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Date : 05.12.2024

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(susHrl KUMAR RASTOGI) PRESIDING OFFICER DRT-II, Delhi

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This^judgement has been signed,^{dated and}

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pronounced in open court.

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Date : 05.12.2024

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(susHIL KUMAR RASTOGI)' PRESIDING OFFICER DRT-II, Delhi

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Uco Bank v. Shri Ananthan Ramaswamy and Ors.

Case brief

What is this about?

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Uco Bank v. Shri Ananthan Ramaswamy and Ors.

Case brief

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