Allowed

Bank of Baroda v. Sh. Sachin Kulshreshtha

DRT18 Feb 2026TA/1055/2023

Case brief

AI extract

What is this about?

The tribunal allowed the application filed by Bank of Baroda against the builder. It held that since the flat was not handed over and construction incomplete, the builder must refund amounts to the bank to avoid double recovery from the borrower.

What did the court decide?

Directed Defendant 3 (builder) to pay Rs. 50,95,230/- including cost and interest within 30 days; recovery from sale of mortgaged property or assets if not paid.

Bank of Baroda versus Sh. Sachin Kulshreshtha — Contract and Commercial Disputes | DRT (2026)

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I L i I l i

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I t' I

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Before SUSHIL KUMAR. RASTOGI, Prcsiding Officer Debts Recovety Tribunal-Il, Delhi

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TA No.105512023

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BANK OF BARODA VS SH. SACHIN^{KULSHRESTHA & ORS}

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Reserved on =27.0t'2026

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Plonounced on : 18.O2.2O26

Bank of Baroda

-^{APPlicantbank}

Vs.

Sh. Sachin Kulshreshtha

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Ms. Shikha Kulshrestha

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M/s Rudra BuiHwdl^{Proiects Private Limited}

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Defendants

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Present: Ms.^{Meenu Dixit,Counselappears for applicant} bank.

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Defendants are ex-pafte^{since 17.06.2025.}

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FINAL ORDER

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This original application^{has been filed by the} applicant bank, on^{24.L2.20L9 through Shri Surendra} Prasad Singh, Chief^{Managerof the applicant bank, under} Section 19 of the^{RDB Act, 1993 against the defendant no'1} to 3 for recovery of a^{sum of Rs.50,95,230/- together with} cost, charges and^{pendentellite and future interest @} ll.20o/o^p.a. from 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, on} 13.07.2015, a^{Housing LoanFacility of Rs.47lacs for} purchasing a under construction^{apartmentsuper area} measuring approx^{1841 sq. ft., bearing no.A2-2101, 21*} floor, Tower A2,^{Rudra.PalaceHeights, Plot bearingno'GH-} 02B, Sector-l,^{NoidaExtqlsion, Greater Noida, Gautam} ( A

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TANO. 1055t2023

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Budh Nagar 201303 (U.P.) in the name of the defendant no.l from the defendant no. 3. In order to avail the said loan facility the defendant no.l and 2 have signed & executed various loaning documents dated 21.07.2015.^A Tripartite agreement dated 21.07.2015 was^executed amongst the defendant no.1, defendant^{no. 3 and applicant} bank. Defendant no.1 agreed and^{undertook to createfirst} charge by way of equitable mortgage of^{property/apartment} in question to secure the repayment of^{the aboveloan} facility after the Sub-leasefl-ransfer^{deed/saledeed is} executed. Defendant^{no.3 signedand executed undertaking} cum indemnity dated 23.07.2015.^{Defendant no.1 also} submifted letter dated^{23.07.20L5of the defendant no.3, of} their^permission to create^{mortgagecum No Objectionfor} giving loan to the defendant no.1 by the^{applicant bank and} in moftgaging the apartment^{in questionwith the applicant} bank.

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It is further submitted^{that the defendantsenjoyed} and utilized the Loan^{facility,but failed to maintain the} financial discipline^{and failed to repay the due amounts. The} applicant bank requested^{the defendantsto regularize the} loan account by visits and^{letters, but there was no} response from the defendants,^{hence the account was} classified as NPA on^{23.09.2017.Therefore, the applicant} bank served a legal noUce^{dated 14.08.2019 to the} defendants, demanding the^{amountdue as on that date,} but failed to recover the^{same.Thus, the present O.A. is} preferred by the applicant bank to recover^{its dues.}

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On notice by this Tribunal,^{defendantsfailed to put} appearance at all, despite^{publicationand accordingly} defendants were^{proceede{a_gg!$exparteon 17.06.2025.} I

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TANO. tOsS/2023 3

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The applicant bank filed its evidence by way of the affidavit of Shri Surendra Prasad Singh, Chief Manager of the applicant bank as Annexure A-1 to Annexure A-24.

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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 executing loan documents the applicant bank has entered into a Tripartite Agreement with the builder along with the borrowers. Para 19 of the Tripartite Agreement is as follows:^-

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"19. fn cae of any delay on the part of the builder or if the builder fails or refuses to exsute sle ded in favour of the borrower and hand over posression of Schdule, 'B' proryrU even afrer receipt of the entire payment as mentbnd in the aid agrements, or even after the expiry of _ month from _ the date of approual of plan with a grace priod of _ months or if the sid agremenB are cancelld for any reafin or if the furrower dies, the bank will have full di*retio4 howeuer without beng fuund to exercis such dirrettbn, to step into the shoes of the borrower and the bank shall have all the righb to take all rquisite steps for getting the sle dd executd in iB favour and/or bke posession of the thdule 'B' prorerty. In such cas the builder shall be lbble to pay the o(penes, cosb etc. incurrd by the funk in connection with the sme and the funk shall be entrtld to ruover the same from the builder in addition to the damages for noncompletion of onstruction the Schdule 'B' property. In ae the bank decids not to take the Schedule 'B'property, it shall have the rbht to obtain refund of all the amounb receivd by the builder in respst thermf, whether from the borrower or from the bnlc, with interest @_%o per annum alculatd at monthly resE. To the extent of the

TA NO. 1055/2023

sid amount interst and costs/expenw the funk shall have first charge on the khdule 'B'property, till the sard amounl interest and cosb/ expen# are rsoverd. The funk shall refund the fulance, if any, to the borrower or the retwn^{entitld thereto afrer adjusting the entire} outsbnding dues, inctuding interefi cosB and other amounB rxoverable by the bank from the borrower in respst of the loan."

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As per conditions contained in the Tripartite Agreement at21.07.2015 at^para no. 19, 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 borrower or from the applicant bank in lieu of the^payment ofthe construction ofthe 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 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 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 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 gg!-in return nothing. In such

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EA.

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TANO. 105512023 5

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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 Transfer Application deserves to be allowed against the defendant no. 3.

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ORDER

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I hereby allow this O.A. of the Applicant Bank and direct the defendant no.3 to pay to the applicant bank within 30 days from today, a sum of Rs.50,95,230/- along with cost, expenses and interest @ 10olo from the date of filing of this O.A. which has become T.A. till the date of realization.

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In case of failure to deposit the above amount within the stipulated period, the same shall be recovered from the sale of the mortgage property being super area measuring approx 1841 sq. ft., bearing no.A2-2101, 21* floor, Tower A2, Rudra Palace Heights, Plot bearing no.GH-02B, Sector-l, Noida Extension, Greater Noida, Gautam Budh Nagar 201303 (U.P.). 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 Certificate be issued forthwith and be sent to Recovery Officer, Debts Recovery Tribunal-Il, 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 -tS.' Parties.

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TANO. t05512023 6

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Parties are directed to appear before the^Ld. Recovery Officer, DRT-II, Delhi on 20.04.2026. Pending IAs, if any, stand disposed of.

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File be consigned to records.

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Date : 18.02.2026

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e{?.\ r t\ (SUSHIL KUMAR RASTOGI) PRESIDING OFFICER DRT-II, Delhi

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This^judgement has been signed, dated and pronounced in open court.

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Sr\

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Date : 18.02.2026

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(susHrl KUMAR nh*rdcu PRESIDING OFFICER DRT-II, Delhi

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Bank of Baroda v. Sh. Sachin Kulshreshtha

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Bank of Baroda v. Sh. Sachin Kulshreshtha

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