Allowed

Union Bank of India (E-Corporation Bank) v. Sh Deepu Gupta

DRT19 Mar 2026TA/1343/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by a bank to recover dues from a borrower's builder. Relying on a Tripartite Agreement, the court held the builder liable to refund the loan amount as the borrower did not receive possession.

What did the court decide?

Directed defendant no. 3 (builder) to pay Rs. 23,33,452/- with costs and interest within 30 days, subject to recovery from sale of mortgaged property if not paid.

Union Bank of India (E-Corporation Bank) versus Sh… — Contract and Commercial Disputes | DRT (2026)

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Before SUSHIL^{KUMAR RASTOGI,Presiding Officer} Debts^{RecoverYTribunal-Il' Delhi}

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TA No'1343^{ot 2023} UNION^{BANKOF INDIA (E-CORPORATION BANK) Vs} SH. DEEPU^GUPTA&ORS

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Reserued on z 26.02'2026 Pronounced^{on : 19.O3'2026}

Union^{Bankof India}

(E-CorPoration^Bank)

-^{Applicantbank}

Vs.

Sh. DeePu^GuPta

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Ms. Kumari^Archana

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White^House The Vocational^{Education Foundation}

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Defendants

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Present:^{Mr. Samarendra Kumar, Counsel appearsfor} aPPlicant^bank' Dlfendans^{are ex-parte since 01'04'2025'}

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FINAL^ORDER

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This original^{application has been filed by the} applicant^{bank, on 04.08'2017through Shri KapilDev'} Senior^{Managerof the applicantbank'under Section19 of} the RDB Act,^{1993 againstthe defendantsfor recoveryof} a sum of^{Rs'23,33,452/-together with cost' chargesand} pendentellite and^{future interest @ t2'25o/o p'a'} compounded^{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 requestof} the defendants,^{the applicant bank sanctioneda Home} Loan Facility^{of Rs.27 lacs for to purchase a under} constructionFlatApartmentNo.3lg4,lgfffloor,Tower-T3, measuring^{super area 1019 sq' fin White House'} situated^{at Group Housing Plot no'08' ChorosiaEstate'} SJ

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TANO.^{1343 of 2023}

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Sector-Pl¹ &^{2, at GreaterNoida, GautamBudhNagar'} UP, vide sanction^{letter dated 22'07} '2014'^{The defendants} executed all^{necessaryloaning documentson 11'08'2014'} The aforesaid^{credit facility was secured by the aforesaid} mortgage^{property. A Tripartite Agreement dated} 11.08.2014^{was executed between defendant no'1 and} defendant^{no. 3 with the applicant bank'}

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It^{is furthersubmitted that the defendants enjoyed} and utilized^{the Loan facility, but failed to maintain the} flnancial^{discipline and failed to repay the due amounts'} The applicant^{bank requestedthe 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 12'05'2017'Therefore' the} applicant^{bank serveda demand notice dated 28'07 '20L7} to the defendants,^{demandingthe amount due as on that} date,butfailedtorecoverthesame'Thus'thepresent O.A. is^{preferred by the applicantbank to recoverits} dues.

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On^{notice by this Tribunal, defendants failed to put} appearance^{at all, despite publication' Accordingly' the} defendants^were proceeded against^exParte on 01.04.2025.

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The^{applicant bank filed its evidence by way of the} affidavitofShriAnujKumarSaxena,BranchManagerof the applicant^{bank as page no'21 to page no'91}

Sr\

TANO. 1343^of 2023

Heard the^{Ld. Counsel ofapplicant bank and} perused the records'^{From perusal of the recordit is clear} that at the^{time of executing loan documentsthe} applicant bank^{has enteredinto a TripartiteAgreement} with the builder^{along with the borrower' Para no'3 of the} Tripartite^{agreementis as follows:-}

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"In the^{event of the botower and or builder/and} owner failing^{to complete the ste tnnsction and} rqistration thersf^as Fr^{the agrement betwxn} buitder/tand^{owner & borower, the builderlandowner} undeftakes^{and agres to return all the moneys rrceivd} by him, in^{annutionwith the amount disburd by the} bank to the^{borower for purchase of the flat in question} with interest^{to the bank."}

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As^{per conditions containedin the Tripatite} Agreement dated^{11.08'2014 at para nO'3, in case of} default by^{the borrower the amountwhich has been paid} by the borrower^{to the builderhas to be returnedto the} bank. In^{the presentcase the borrowerhas madedefault} in repayment^{of the EMIs and therefore, as per condition} agreed^{betweenthe parties, the builder is under} obligation^{to return the entire amount which he has} receivedfromtheborrowerorfromtheapplicantbankin 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 builder for construction} of the flat.^{The applicantbank has not claimed that the} builder in^{violaUon of the terms and conditionshas} handed over^{the flat to the defendantno'1 & 2' The} borrower^{has not taken;r1yamount in his accountand} sI'

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TANO. 1343of2023⁴

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the entire^{amount has been paid to the builder'In} addition to^{this the borrowerhas also paid the margin} money to^{the builderand also paid certain EMIsas} mentioned^{by the applicantbank' The borrowerhas 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 moneyand has still paid} the margin^{money and also certainEMIs to the bank and} has^got in^{return nothing'In such circumstancesand as} per agreed terms^{and conditionsit is only the builder who} is liable to^{pay the defaultedamount to the applicant} bank.

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

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ORDER

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t) I^{herebyallow this O'A' of the applicant bank and} direct the^{defendant no'3 to pay to the applicant bank} within30daysfromtoday,asumofRs'23'33'452/-atong with cost,^{expenses and interest @ 10'25o/o from the date} of flting^{of this O.A. which has becomeT'A' till the date of} realization.

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In^{case of failure to deposit the aboveamount} within the^{stipulated period, the same shall be recovered} from the^{sale of the mortgagedpropefi i'e" Flat} Apartment^{No.3194, 19H floor, Tower-T-3'measuring} super area^{1019 sq. ft. in WhiteHouse'situatedat Group} Housing^{Plot no.08,ChorosiaEstate, Sector-Pl 1 & 2' at} Greater^{Noida,Gautam BudhJrlagar,UP' In case of short}

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9"r

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TA NO. 1343^{of 2023} 5 be recovered^{from the sale of} fall, the same^shall personal movable and^{immovableassetsof the defendant} no. 3.

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Recovery^{Certificate be issuedforthwithand be sent} to Recovery^{Officer, Debts Recovery Tribunal-Il, Delhi'}

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

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Pafties^{are directed to appear before the Ld'} Recovery Officer,^{DRT-II, Delhi on 19'05'2026'Pending} IAs, if any,^{standdisPosed of.}

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File be consigned^{to records'}

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,-4---

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3A Date : 19.03.2026 (susHIL KUMAR'^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 : 19.03.2026

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.-.,/.-.-.-\SA (susHIL KUMAR RASTOGI) PRESIDING^OFFICER DRT-II, Delhi

Union Bank of India (E-Corporation Bank) v. Sh Deepu Gupta

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Union Bank of India (E-Corporation Bank) v. Sh Deepu Gupta

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