Allowed

Punjab and Sind Bank v. Mrs Kiran Vats and Ors.

DRT22 Aug 2024TA/269/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of dues. Based on the tripartite agreement, the court held the builder liable to refund the entire loan amount paid by the bank to them upon the borrower's default, as the property was never allotted or possession handed over. The application was allowed against the builder as a third party.

What did the court decide?

Directs defendant no. 3 to pay Rs. 20,45,510.90 with costs and interest @ 12.25% p.a. from the date of filing of T.A. or face recovery from property sale.

Punjab and Sind Bank versus Mrs Kiran Vats and Ors. — Contract and Commercial Disputes | DRT (2024)

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Before^{susHILKu}lAR RASTOGI,|r:.d.1ng officer} Debts^{RecoveryTribunal-Il' Delhi} TA No'269^OF2024 PUN,AB^{& SIND iiiifV' MRS. KIRAN & ORS}

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r L4.O6.2O24 Reserued^on Pronounced^{on z 22'08'2024}

Punjab^{& Sind Bank}

-^{ApPlicant bank}

Vs.

Mrs.^KiranVats

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Mr.^{MaYank Singhal}

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M/s.^{AlPine Realtechht' Ltd'}

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Defendants

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Ms. Seema^{Gupta,Counsel appears for} Present: aoolicant^bank. tione for^defendants'

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FINAL^ORDER

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This original^{applicationhas been frted by the} applicant^{bank, on 08'09'2017 through Shri Vishnu} Kumar^{Vijaivargia, Authorized Representative of the} applicant^{bank, under Section19 of the Recoveryof} Debts^{Due to Banks and FinancialInstitution Act'} 1993 against^{the defendant nos' 1 to 3 for recovery of} a sum^{of Rs.20,45,510'90togetherwith cost' charges} and^{pendentelliteand future interest @ 12'25oloP'a'} from date^{of filing of this T'A' till the realization in full'}

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The^{brief facts of the case are that at the} request^{of the defendant no' t through defendant} no.2 &^{3, the applicant bank sanctioned'on} 10.09.2014,^{a Home Loan Facility of Rs'28'00'000/-} for^{purchasingof Flat bearing no'B-206'IInd Floor'} EKDANT^{FNG, HRA-1/B,} -^,/-Sj!e-C,^{Surajpur'Greater}

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2 TANO.^{269 of 2024} Noida,^{U'P, admeasuring about 1075 sq' ft from} defendant^{no' 3' The defendant no'2 stood as} guarantor^{to the above said loan facility' In order to} avail^{the said loan facility the defendant no' 1 & 2 has} executdvariousloaning/securitydocumentsdated 11.09.2014.^{Defendant no' 3had issued the} permission^{to create equitable mortgage propertyin t} favour^{of the applicant bank and also issued an} allotment^{letter dated 21'08'2014 in favour of} defendantno.t.ATripartiteAgreementdatedon 11.09.2014^{has entered into between the defendant} no. 1,^{applicant bank and defendant no' 3'}

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It^{is further submitted that the defendants} enjoyed^{and utilized the Loan facility'but faitedto} maintaintheflnancialdisciplineandfailedtorepay thedueamounts.Theapplicantbankrequestedthe defendants^{to regularize the loan accountby visits} and letters,^{but there was no response from the} defendants,^{hence the account was classifledas NPA} on30.06.2016.Therefore,theapplicantbankserved a tegal^{notice dated 11'07'2016 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 recover its dues'}

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4 On notice^{by this Tribunal, defendants failedto} put aPPearance^{at all,} desPite Publication^and were Proceeded^against accordinglY^defendants exparte^{on 03'07'2019'} sA

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3 TANO.^{269 of 2024}

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5.^The documentary^{evidence filed by applicant} Exhibit^{AWU1to AWU17 have gone} bank^as unchallenged^{and un-rebutted'}

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6.^{Heard the Ld' Counsel of applicantbank and} perused^{the records' From perusalof the record it is} clear^{that at the time of executing loan documents} the applicant^{bank has entered into a Tripaftite} Agreement^{with the builder along with the borrower'} Para^{(a), (g) and (m) of the Tripartiteagreementis} as follows:-

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'a). That^{the bank shatl have the first and paramount} lienoverthemoniesaheadydisbutdinfavourof theBorrowerandpaidtotheBuitder/Landowner. The charge^{in favour of Bank shatt be ftrst in} paramount^{over the charge which the builder nay} have^{over the said Flat'}

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g). That in^{the event of the Bonowerfailing to} complete^{the ste transaction and obtain a} rcgifiercd^{aledeed in his favour' the} Builder/tand^{Owner undetbkes and agrces b} rcturn^{atl moniesrcceived by him/it to the} Bank in^{connection with amount disbuaed by} the Bank^{to the Bonowerfor purchase of the} flat in^{questionwhichhas been paid dircctly to} the Buitder/tand^{Owner on the tquest of the} Bonower.

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m). That^{in case of termination/cancellationof the} Agrement^{for any reason whaBoever' the} Buitder/Land^{Owner shall refund to the Bankwithin 15} (fifrren) days^{from the date of such terminationand/} 9

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TA NO.^{269 of 2024}

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or ancellation,^{the entire amount of t@n disburd} by the^{Bank and interestas agred to be paid by the} Bonower^{to the Bank i'e' the contractualrate of} interestandotherchargesduetothefunk.The tiabitity^{to repay the eid toan with interestand other} charges^{is joint and severalupon the Borrowerand} the^{Buitder/LandOwner' "}

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7.^{As per conditions containedin the Tripaftite} Agreement^{dated 11'09'2014' in case of default by} the borrower^{the amount whichhas been paid by the} borrower^{to the builder has to be returnedto the} bank.^{In the present case the borrower has made} default^{in repaymentof the EMIs and therefore'as} per condition^{agreed between the parties' the builder} is under^{obligation to return the entire amountwhich} he has^{receivedfrom the borrower or 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 constructionof the flat' The applicant} bank^{has not claimed that the builder in violation of} the terms^{and conditions has handed over the flat to} the defendant^{no'l' The borrower has not taken any} amount^{in her account and the entire amount has} been^{paid to the builder' In addition to this the} borrower^{has also paid the margin money to the} builder^{and also paid certainEMIs as mentioned by} the applicant^{bank' The borrower has not got the} possession of^{the flat' If the borrower is directedto} pay the amount^{which has been actually paid to the} builder^{this will amount- double penalty on the} €A

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TA NO.^{269 of 2024}

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borrower.^{The borrower has receivedno money} and^{has still paid the margin money and also certain} EMIs^{to the bank and has got in return nothing' In} such^{circumstancesand as per agreed terms and} conditions^{it is only the builderwho is liable to pay the} defaulted^{amount to the applicantbank'}

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In the^{light of the abovediscussions'the PresentT.A'} deserves^{to be atlowed 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 defendantno' 3 to pay to the applicant} bank^{within 30 days from today' asum of} Rs.20,45,510'90^{along with cost' expenses and} interest @^{L2.25o/ofrom the date of filing of this T'A'} till the^{date of realization'}

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it the^{above amount} 2) In^{case of failure to dePos} the same^shallbe within^{the stiPulatedPeriod'} recovered^{from the sale of the property bearing no'B-} Floor,^{EKDANTFNG, HRA-UB'Site-C'} 206, IInd reater^{Noida, U.P, admeasuringabout 1075} SurajPur,^G case of^{shoft fall, the same shatl be} sq. ft.^In recovered from the^{sale of personal movableand} immovable assets^{of the defendant no' 3'}

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3)^{RecoveryCertiflcate be issuedforthwith and be} sent to^{RecoveryOfficer, Debts Recovery Tribunal-Il'} Delhi. E^''a'

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E^''a'

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TANO.^{269 of 2024} 6 4)^{The registry of this Tribunal is hereby directed} to issue^{free copy of the order and sendthe same to} both^the Parties'

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es are^{directed to appearbefore the Ld'} 5)^Parti Officer,^{DRT-II, Dethi on 18'10'2024'} Recovery Pending^{IAs, if any, standdisposedof'}

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Fite be^{consigned to records'}

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Date^{: 22.08'2024}

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(susHIL KUMAR^RASToGI) PRESIDING^OFFICER DRT-II,^Delhi

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This^{judgement has been signed' datedand}

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pronounced^{in oPen court'}

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C-\

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(susHIL KUMAR^RASToGI) Date :^22.08.2024 PRESIDING^OFFICER DRT-II,^Delhi

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Punjab and Sind Bank v. Mrs Kiran Vats and Ors.

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Punjab and Sind Bank v. Mrs Kiran Vats and Ors.

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