Allowed

Icici Bank Limited v. Harish Sharma

DRT29 Oct 2025TA/165/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal dismissed claims regarding authorization and unauthorized charges, relying on the tripartite agreement. The court directed the builder respondent to pay the outstanding amount as the borrower had not received possession or the loan proceeds.

What did the court decide?

Builder respondent directed to pay a sum of Rs 24,98,092 along with cost, expenses and pending interest within 30 days.

Icici Bank Limited versus Harish Sharma — Contract and Commercial Disputes | DRT (2025)

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Before SUSHIL^{KUMAR RASTOGI,Presiding Officer} Debts Recovery^{Tribunal-II, Delhi}

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TANo. t65OF2022

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ICICI BANK^{LIMTTED VS SH. HARISHSHARMA& ORS}

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Reserued on : 19.09.2025

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Pronounced on^{: 29.10.2025}

ICICI Bank^Limited

-^{Applicant bank}

Vs.

1 . Sh. Harish^Sharma 2. Smt. Rekha^Sharma 3 M/s K. Soni^{Builders& Promoters (P) Ltd - Defendants}

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Present: Shri^{Rakesh Singh,Counsel for applicant} bank. Defendants are^{expafte since 15.07.2025'}

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FINAL ORDER

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This original application^{has been filed by the} applicant^{bank, on 03.09.2016 through Sh' Anuj Jain'} Authorized^{Representative of the applicantbank, under} Section 19^{of the RDB and FinancialInstitutionAct'} 1993 against^{the defendants for recoveryof a sum of} Rs.24,98,092/-^{together with cost, charges and} pendentellite and future^{interest @18o/ofrom date of} filing of this^{O.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.1 & 2, the applicant bank} sanctioned^{a Home Loan Facility of Rs'22,90,000/-, vide} sanction letter^{dated 23.06.20L4 to defendant} no.3/builder^{on behalf of defendant nos'1 & 2 for} purchasing the Flat/apaftment^{bearing Flat No'838, Bs} Floor, Tower-19,^{KSB Royal Height, Group Housing} Colony, Sector-126,^{Greater Mohali(Kharar),Mohali-} 160055^{(Punjab)whichi? berirgconstructedby the} <\

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TANO. 165 of 2022

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defendant no.3.^{The defendant no. 3 to create} the security interest,^{has already issued permissionto} mortgage letter dated^{07.07.2014 in favour of applicant} bank^permitted the^{creation of mortgageof the said} property in favour of the applicant^{bank on executionof} the documents of the^{said property. A Tripartite} Agreement dated 07.07.2014^{has also enteredinto} between the applicant^{bank,defendant nos.1 and 2 and} the defendant^{no.3. The defendant nos.1 & 2 executed} all necessry loaning^{documentson 23.06.20L4,} 07.07.2014 and^17.07.2014.

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It is further^{submittedthat 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 requestedthe} defendants to^{regularize the loan account by visits and} letters, but there^{was no response from the defendants,} hence the account^{was classifiedas NPA on 31.01'2016'} Therefore, the applicant^{bank serveda demand notice} dated 21.04.2016^{to the defendants, demanding the} amount due as on^{that date, but failed to recoverthe} same. Thus, the^{present O'A.ff.A. is preferredby the} applicant bank to^{recover its dues.}

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On notice^{by this Tribunal, defendantnos'1 & 2} put appearance through counsel^{and filed WS and} evidence. The^{defendant no.3 failed put appearance at} all. Thereafter,^{the defendants failed to put appearance} in the matter, despite^{issuance of defaultnotice'} Accordingly, the^{defendantswereproceededagainst} exparte on^15.07.2025.

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In their^{writtenstatement the defendant nos'1 &} 2 have denied the^{facts mentioned in the OA' It is}

TA NO. 165 of 2022

submitted that Sh. Ajun Jain, Officer of^the

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applicant bank is not duly authorized^{on the part of the} applicant bank to sing, verify and^{institutethe present} O.A. It is further submitted that the^{applicant bankis} guilty of obtaining the signatures of the defendants on various blank formats which have^{now been converted} into loan and security documents^{with view to institute} the present O.A, hence the O.A. filed^{by the applicant} bank deserve dismissal. It is^{submitted that the} applicant bank is^guilty of^{exorbitant rate of interestand} debiting various unauthorized^{chargesand overhead} expenses in the statement of account^{of defendants. It} is further submitted that the^{Hon'ble Supreme Court of} India has specifically upheld in^{the matter of Central} Bank of India Vs Ravinder & Ors^{that penal interest} should not be capitalized for^{compoundedin any} manner by the banks and^{financial institutions. It is} submitted that the statement^{of account relied uponby} the applicant bank is not duly^{certified under the} banker's book of evidence^{act as amendedby the} information technology act,^{2001' In the absence of} proper certification of the statement of^{accounts, the} applicant bank^{has been unable to provethe disbursal} of any loan facility to the^{defendant' It is prayed that} this Hontle Tribunal^{may dismissthe presentO.A.}

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The applicant bank^{as well as defendant no' 2} have filed their respective^evidence.

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Heard the Ld. Counsel of^{applicant bankand} perused the records. From^perusal of the^{record, it is} clear that at the^time of^{executing loan documentsthe} applicant bank^{has entered into a TripartiteAgreement} with the builder along^{with the borrower.Para 4 & 5 of} the Tripartite agreement^{is as follows:-} t qr\

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TANO. 165^of2022

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of the *4. In the event of cancellation allotment^{of the plot to the Borower for any reason} whatsoever^{the DevelopmentAuthority undertakesto} refund all^{the amounbpayabteto the Borrowerdirectly} to ICICI^{Bankwithout any reference of the Botower'} which ICICI^{Bank may adjust against any amount due} and PaYabte^{bY the Borower to it'}

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u5. The development Authority fufther undertake^to convey an^{unencumbered,clear, marketabletitte by} way of registered^{Lease/ Conveyance Deed to the} Borrower^{on futt payment of the consideration of the} said ProPertY."

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As^{per conditions contained in the Tripartite} Agreement^{dated 07'07'20L4at para no'4 & 5' in case} of default^{by the borrowerthe amount whichhas 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^{repaymentof the EMIs and therefore'as per} condition^{agreed between the pafties' the builder is} under obligation^{to returnthe entire amount which he} has received^{from the borroweror from the applicant} bank in^{lieu of the payment of the constructionof the} flat. Moreover,^{from the perusal of the entire facts it is} apparent^{that the borrowerhas taken the loan and the} loan amount.^{has been paid to the builderfor} construction^{of the flat' The applicant bank has not} claimed that^{the builderin violation of the termsand} conditions^{has handed over the flat to the defendant} no.1 & 2.^{The borrower has not taken any amount in} his account^{and the entire amount has been paid to the} builder.^{In additionto this the borrowerhas also paid} the margin^{moneyto the builder and also paid certain} EMIs as^{mentionedby the aPplicalt bank' The borrower} C)

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TA NO. 165^{of 2022}

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has not^{got the possession of the flat' If the borrower} is directed^{to pay the amount whichhas been actually} paid to the builder^{this will amount double penaltyon} the borrower.^{The borrowerhas received no money and} has still^{paid the margin money and also certain EMIs} to the bank^{and has got in return nothing' 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 the 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, a sum of Rs'24'98'0921-} along with^{cost, expenses and interest@ 10'15o/o from} the date^{of filing of this O'A' whichhas become T'A till} the date^{of realization'}

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Z) In^{case of failure to deposit the above amount} within the^{stipulatedperiod, the same shall be} recovered^{from the sale of the moftgaged properry} bearing^{Flat No.838, Bh Floor, Tower-19'KSBRoyal} Height,^{Group Housing Colony, Sector-126'Greater} Mohali^{(Kharar), MohalF160055 (Punjab)' In case of} short fall,^{the same shall be recovered from the sale of} immovable^{assets of the} personal movable^and defendant^{no. 3.}