Allowed

State Bank of India v. Mr Girish Kumar Sharma

DRT17 Sept 2025TA/258/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by State Bank of India against the builder. Relying on a tripartite agreement where the seller agreed to return funds upon default, the court directed the builder to pay the outstanding loan amount and interest, noting the borrower had not received possession or funds.

What did the court decide?

Direct the defendant No. 2 (builder) to pay Rs. 17,98,677/- along with cost and interest to the applicant bank.

State Bank of India versus Mr Girish Kumar Sharma — Contract and Commercial Disputes | DRT (2025)

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Before SUSHIL KUMAR RASTOGI, presiding Officer Debts Recovery Tribunai-il, Oeltri

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TA No. 2SA12OZ3

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STATE BANK OF INDIA-VS CTNiTES TUMAR SHARMA AND ORS.

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Reserued on : 19.0g.2025 Pronounced on : 17.09.2025

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State Bank of India Vs.

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-^Applicant bank

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Mr. Girijesh Kumar Sharma 2. M/s Manju J Homes India Limited -Defendants

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Present: Mr. .Pradeep Dhaka, Counsel for applicant bank. Defendant no.l is exparte, since, 07.02.2023. Defendant no.2 is exparte, since, 73.05.2024.

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FINAL ORDER

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This original application has been filed by the applicant bank, on 01.04.2019 through Mr. Sushil Kumar Chadha, Chief Manager of the applicant bank, under Section 19 of the Recovery of Debts Due to Banks and Fi-nancial Institution Act, 1993 against the defendants for recovery of a sum of Rs.17,9g,6771_ together with cost, charges and pendentellite and future interest CO10.B0o/o p.a. from date of filing of this O.A. tillthe reatization in full.

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The brief facts of the case are that at the request of the defenciant no. 1, the applicant bank sanctioned a Housing Loan Facility of Rs.22,36,0001_, on 30.04.2077 for purchasing the property being Flat No.G-602, 6th Floor, Tower-G, Red Apple Homez, Khasra No.1i09 & 1110, Village Morta, Ghaziabad, Uttar Pradesh and out of the said loan amount of k.22,36,000i- a sum of Rs.15,33,97g same has been disbursed by the applicant bank_at the request of s)

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TANO.25812023²

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no.1 defendant no.l^{till date. The defendant} on executed all^{necessaryloaningdocuments} 08.04.2017 and^{30.04.20L7. To secure the} due repayment in the^{aforesaidhousing loan, defendant} no.1 created an^{equitable mortgageof the aforesaid} property by way of deposited^{of the title documents} with applicant^{bank. The defendant no'2lbuilderhas} issued no objection^{certificatequa mortgage of the} aforesaid^{property by the defendantno'1 in favour of} the applicant^{bank. The defendantno'2 has also} entered into^{a Tripartite Agreementdated 30'04'2017} with the applicant^{bank and the defendant no'1'}

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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} lefters, but there^{was no response from the} defendants,^{hence the account was classifiedas NPA} dated 27.OL.IOL}.^{Therefore, the applicantbank} served a^{demand notice dated07'03'2019to the} defendants,^{demandingthe amountdue as on that} date, but^{failed to recoverthe same' Thus, the present} O.A.ff.A.^{is preferred by the applicant bank to recover} its dues.

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On notice^{by this Tribunal, defendant no'l put} appearance^{throughcounsel but failed to file written} statement.^{Thereafter, the defendantno'1 failed to put} appearance^{in the matter, despite service' Accordingly'} the defendant^{no.1 proceeded against expafte on} 07.02.2023.^{The defendant no'2 failed to put} appearance^{at all, despitepublication' Accordingly'the} CJ.,^t,

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TANO.2s8l2023³

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defendant no.2^{proceeded against exparteon}

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13.0s.2024.

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The applicant^{bank has filed documentsas Paper} No-1 to Paper no-63.

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Heard the^{Ld. 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 a TripartiteAgreement} with the builder along with^{the borrower' Para 2 of the} Tripartite agreement^{is as follows: -}

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"2. That the Buitder/Developer^{agreesthat it has no} objection to the^{Bonower(s) mortgaging the said flat} with^{proportionateshare in land to the SBI as security} for the said loan agreed^{to be advanced by the SBI for} the purpose of^{purchase/constructionof the said flat'} In the event of default^{in the repaymentof loan and or} the Borrower committing^{any other default which} makes the Borower(s)^{tiable for the repayment of the} entire amount ou9tanding^{in the said loan as per the} terms of the^{Loan Agrement executed between the} Borrowe(s) and the^{5BI, the Buildershall, at the} request of 5BI,^{be under obligation to not deliver} possession to the Borrower and/or^{cancel the booking} and^pay att the^{amounts received by the Builder on} behalf of the Bonower(s)^{to SBI including also any} amount^paid by^{the Borrower to the Builder' However,} the Buitder/developer^{shall be entitled to recover} canceltation and/or^{any other charges,if any payable} by the Borrower^{under the terms of applicationform} for purchase of^{the said flat and/or agrementto} sale/construction^{out of the Borrower's contribution'} lJpon payment of^the -amounts^bythe C)

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TANO.25812023

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Builder/Developer to SBI as aforesaiQ^{the SBI and} the Borrower will not have any claim,^charge,lien, moftgage, right, title and interest etc.^{whaBoever,over} the said flat SBI shall issue a ceftificate^{to releaseany} moftgage/charge/ien created on the^{said flat. The} Borrower hereby expressly agres that^{in the event of} default in either repayment of the loan^{or any other} default by the Bonower, SBI shall be entitld^{to rquert} the Builder to cancel the booking and^{return the} amounb receivd by the Builder and^{the Borrower} agrees and acknowledges^{that any such rquest by SBI} and^payment made by^{the Builder under this clause to} SBI shall be binding upn^{the Borrower."}

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As^per conditions contained in^{the Tripartite} Agreement dated 30.04.2017 at^{para no.2, 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^{presentcasethe borrower has made} default in repayment of the^{EMIs and therefore,as per} condition agreed between^{the 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^payrnent of^{the construction of the} flat. Moreover, from the^{perusal of the entire facts it is} apparent that the^{borrower has taken the loan and the} loan amount has been^{paid to the builders for} construction of the flat.^{The applicant bank has not} claimed that the builder^{in violationof the terms and} conditions has handed over^{the flat to the defendant} no.1. The borrower^{has not taken any amount in his} account and the^{entire amount has been paid to the} builder. In addition^{to this the borrowerhas also paid}

TA NO. 258/2023

the margin money to the builder and also^paid ceftain 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 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 applicant bank.

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In the light of the above discussions, the^present T.A. deserves to be allowed against defendant no.^2.

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ORDER

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I hereby allow this T.A. of the Applicant^Bankand direct the defendant no. 2 to^pay to^{the applicant bank} within 30 days from today, a sum of^{Rs.t7,98,6771-} along with cost, expenses and interest @8.650lo^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 r'ailure to deposit the above^amount within the stipulated^period, the same^{shall be} recovered from the sale of the mortgaged^property bearing Flat No. G-602, 6th^{Floor, Tower-G,Red Apple} Homez, Khasra No.1109 & 1110,^{VillageMorta,} Ghaziabad, Uttar^Pradesh. In^{case of short fall, the} same shall be recovered^{from the sale of personal} movable and immovable assets^{of the defendant no' 2.}

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Recovery Certiflcate be^{issuedforthwith andbe} sent to Recovery Officer,^{Debts Recovery Tribunal-Il,} Delhi. C-

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C-

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TA NO.258t2023 6

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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.

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Parties are direct to appear before the Ld. Recovery Officer, DRT-II, Delhi on 17.LL.2025. Pending IAs, if any, stand disposed of.

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File be consigned to records.

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Date : 17.09.2025

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E.\ (susHrl rtJfinn'nAsTocr; 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 : 17.09.2025

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<.\

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) (susHrl KUMA-R nesrbct ) PRESIDING OFFICER DRT-II, Delhi

State Bank of India v. Mr Girish Kumar Sharma

Case brief

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State Bank of India v. Mr Girish Kumar Sharma

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