Allowed

Uco Bank v. Naushad Ajam and Ors.

DRT29 Aug 2025TA/1017/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's arrears application after observing that the borrower did not receive possession of the flat as per the Tripartite Agreement. The court held the builder liable to refund the entire advance to the bank to prevent double penalty and directed payment within 30 days.

What did the court decide?

Directed defendant no. 3 (Builder) to pay Rs.44,53,563.74 with interest to the applicant within 30 days.

Uco Bank versus Naushad Ajam and Ors. — Banking and Recovery | DRT (2025)

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Before SUSHIL KUMAR^{RASTOGI,Presiding Officer} Debts Recovela Tribunal-Il,^Delhi

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TA |LOL7l2O23 UCO BANK VS NAUSHAD^{AJAM & ORS}

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Reserued on : O1.08.2O25 Pronounced on : 29.O8.2025

UCO Bank

-^{Applicant bank}

Vs.

Naushad Ajam

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Rizwana Parween

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M/s Shalviya Infra tut^Ltd.

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Defendants

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Present: Ms. Vandna, proxy for Mr. I.S.^Chauhan, counsel for applicant bank. Defendants are ex-parte since^03.01.2025.

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FINAL ORDER

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This original application has been^{filed by the} applicant bank, on 16.07.2018^{through Mr.R.K.} Sharma, Asst. General^{Managerof the applicant bank,} under Section 19 of the^{RDB Act, 1993 againstthe} defendants for recovery of a^{sum of Rs.44,53,563.74} together with cost, charges and^{pendentelliteand} future interest @11.70olo from^{date of filing of this O.A.} tillthe realization in full.

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The brief facts of the case^{are that at the request} of the defendant nos.1 and^{2, the applicant bank} sanctioned a Term Loan/Housing^{Loan of Rs'61 lakhs} for^purchase of the Flat^{No.C-2101, Tower Corel, 21d} Floor, La-Royale Project, SL-1,^Indirapuram, Ghaziabad- 201010, UP, vide^{sanction letter dated} 14.03.2016. The defendants executed^{all necessary} loaning documents on 14.03.2016. It^{is submitted that} there is intention to create, ayitable^{mortgage on the}

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TA NO. t0r7/2023²

part of the defendants^qua the^{allofted aforesaid} property in favour of^{the applicant bank and in terms} of the security^{documents having been executedby the} defendants^{in favour of the applicant bank,the said flat} forms a valuable^{security for due repaymentof the} dues of the^{applicant bank. A Tripartite Agreement} dated 03.03.2016^{executed between defendantnos'l} and defendant^{no.3 with applicant bank'}

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It is^{furthersubmitted that the defendants} enjoyed and^{utilized the Loan facility, but failed to} maintain^{the financial discipline and failed to repay the} due amounts.^{The applicant bank requested the} defendants^{to regularize the loan accountby visitsand} letters, but^{there was no response from the} defendants,^{hence the account was classifiedas NPA} on 31.05.2017.^{Therefore,the applicant bank served a} legal/ recall^{notice dated 20'03'2018 to the defendants'} demanding^{the amount due as on that date' but failed} to recover^{the same.Thus, the present O'AII'A' is} preferred by the^{applicant bank to recover its dues'}

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On^{notice by this Tribunal, defendants failed to} put appearance^{at all, despite publication' Accordingly'} the defendants^{were proceededagainst exparte on} 03.01.2025.

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The^{applicant bankhas flledevidenceby way of} affidavit^{of Shri.R'K' Sharma,Asst' GeneralManager} of the^{applicant bank as Paper No -3 to Paper No - 69'}

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6.^{Heard the Ld. Counsel for the applicant bank and} perused the^{records' From perusal of the record' it is} clear that^{at the time of executingloan documents the} S-\

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Tripartite

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TA NO. 101712023³

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applicant bank^{has entered into a}

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Agreement with the^{builder along with the borrowers'} Para 7 of the^{TripartiteAgreementis as follows: -}

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"7. Further, the^{Builder, in the event of default of} repayment of^{loan by the Bonowery shall on witten} intimation/ instructions^{of ttCO BANKcancelthe} allotment of^{the Flat of the Borrowers and refun4the} entire^{principat amount aduancd/fundedby UCO} BANK dirxtty^{to UCO BANKand the Buildershall have} right to rsover/foieit^{the earnertmoney depositd by} the botower."

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As^{per conditions containedin the Tripartite} Agreement at^{03.03.2016at para no' 7, in case of} default by the^{borrowerthe amount which has been} paid by the borrower^{to the builder has to be returned} to the bank.^{In the presentcase the borrowerhas made} default^{in repaymentof the EMIs and therefore' as per} condition agreed^{betweenthe parties, the builderis} under^{obligation to return the entire amount whichhe} has received^{from the borrower or from the applicant} bank in^{lieu of the payment of the construction of the} flat. Moreover,^{from the perusalof the entire facts it is} apparent^{that the borrower has taken the loan and the} loan amount^{has been paid to the builder for} construction^{of the flat' The applicant bank has not} claimed that^{the builderin violationof the terms and} conditions^{has handed over the flat to the defendant} nos.1 and^{2. The borrowerhas not taken any amount} in his 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} ceftain^{EMIs as mentioned-bv-the applicant bank' The} <,\

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TA NO. 101712023

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borrower has not^{got the possessionof the flat. If} the borrower^{is directedto pay the amount whichhas} been actually^paid to^{the builder this will amount} double^penalty on^{the borrower. The borrower has} received no money^{and has still paid the margin money} and also ceftain^{EMIs to the bank and has got in return} nothing. In such^{circumstancesand as per agreed} terms and conditions^{it is only the builderwhois liable} to pay the defaulted^{amountto the applicant bank'}

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In the light of the^{above discussions,the T.A deserues} to be allowed^{against the defendant no'3.}

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ORDER

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I hereby^{allow this T.A. of the ApplicantBank and} direct the defendant^{no. 3 to pay to the applicant bank} within 30 days from^{today, a sum of Rs.44,53,563'74} along with^{cost, expensesand interest @ 9'7olo from} the date of^{filing of this O.A' which has becomeT'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 property bearing Flat} No.C-2101,^{TowerCorel, 21* Floor, La-Royale Project,} SL-1, Indirapuram,^{Ghaziabad- 201010, UP' In case of} short fall,^{the sameshall be recoveredfrom the sale of} immovable assets^{of the} personal movable^and defendant^{no. 3.} €I

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TA NO. 1017/2023^s

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Recovery^{Certificatebe issuedforthwithand be} sent to Recovery Officer,^{Debts Recovery Tribunal-Il,} Delhi.

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The registry of^{this Tribunalis hereby directedto} issue free copy of the^{order and send the same to both} the parties.

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Parties are direct to^{appear before the Ld'} Recovery Officer,^{DRT-II, Delhion 29.10.2025.Pending} IAs, if any, stand disPosed^of.

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File be consigned to^records.

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9<br>

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Date :29.08.2025^{(SUSHILKUMAR 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 : 29.08.2025

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

Uco Bank v. Naushad Ajam and Ors.

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Uco Bank v. Naushad Ajam and Ors.

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