Allowed

Union Bank of India (E-Corporation Bank) v. Smt Madhu Chaturvedi

DRT22 May 2026TA/1830/2023

Case brief

AI extract

What is this about?

This is a Tribunal application by Union Bank for recovery of dues from a builder and borrowers. The court held the builder liable under a Tripartite Agreement to refund the loan amount upon borrower default, directing payment by the builder alone.

What did the court decide?

The builder (Defendant 3) was directed to pay Rs. 17,88,803.55 with interest within 30 days to the applicant bank.

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

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

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TA No. 1830 OF 2023

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uNroN BANK OF rNDrA^{(E- CORPORATTON)VS SMT.} MADHU CHATURVEDI & ORS

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Reserued on z 23.04.2026 Pronounced on^z 22.O5.2026

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Union Bank of India (E-Corporation Bank)

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-^{Applicant bank}

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Vs.

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Smt. Madhu Chaturuedi

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Sh. Mahesh Chaturuedi

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M/s Era Landmarks^Ltd

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Defendants

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Present: Shri. Vishnu^{Jaysaval, Counselfor applicant} bank. Defendants are expafte,^{since, 09.04.2025.}

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FINAL ORDER

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This original application^{has been filed by the} applicant bank, on^{27.0L 2018 through Sh.} fuare^Lal, Assistant General^{Manager and Principal Officer of the} applicant bank, under^{Section 19 of the RDB and} Financial Institution^{Act, 1993 against the defendants} for recovery of a sum of^{Rs.17,88,803.55 together with} cost, charges and^{pendentellite and future interest} @11.900/o^{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.l &^{2, the applicant bank} sanctioned a Housing^{Loan Facility of Rs.L3,69,0001-,} vide sanction letter dated^{26.06.20L2 for purchaseof} under construction^{Ftat Bepring No. B-44, Ground Floor,} g.

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TA NO. 1830 of 2023

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Block-B, measuring 935 sq. ft. (Super Area) in ERA Divine Court situated at Sector-S, Palwal, Haryana by defendant no.3/builder. The defendants have executed all necessary loaning documents on t6.07.20L2, 09.07.20L2 and t0.07.20L2. A Tripaftite agreement dated 09.07.20L2 has executed between defendant nos.1 to 3 with the applicant bank. The defendant no.3 also granted^permission to create equitable mortgage of aforesaid propefi.

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It is further submitted that the defendants enjoyed and utilized the Loan facility, but failed to malntain the financial discipline and failed to repay the due amounts. The applicant bank requested the defendants to regularize the loan account by visits and letters, but there was no response from the defendants. Hence, the account was classified as NPA. Therefore, the applicant bank serued a demand notice dated 09.05.2015 to the defendants, demanding the amount due as on that date, but failed to recover the same. Thus, the present O.A.[I.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 proceeded against exparte on 09.04.2025.

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The applicant bank has filed their respective evidence.

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Heard the Ld. Counsels of both the^parties 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.rlg a Tripaftite Agreement

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TA NO. 1830 of 2023

with the builder along with the borrowers.^{Para 3 of} the Tripartite agreement^is as^follows:-

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"3. That in the event of the^{Borrower and or} Builder/Landowner failing to^{completethe sale} transaction and registration^{thereof as per the} agreement between the^{Builder/ Landowner&} Borrower the builder/landowner^{undeftakes and agrees} to return all the moneys receivd^{by him, in connection} with the amount disbursed by^{the bank to the Borrower} for purchase of the flat in^{question with interest to the} bank."

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As per conditions contained^{in the Tripaftite} Agreement dated 09.07.20L2^{at para no.3, 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 amountwhich he} has received from the borrower^{or from the applicant} bank in tieu of the^{payment of the constructionof 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 builderfor} construction of the^{flat. The applicant bank has not} claimed that the builder^{in 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} buitder. In addition^{to this the borrowerhas also paid} the margin money to^{the builder and also paid ceftain} EMIs as mentioned by^{the applicantbank. The borrower} has not got the^{possessionof the flat. If the borrower} -.'^z

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TA NO. 1830 of 2023

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 moneyand also} certain EMIs to the bank^{and has got in return nothing.} In such circumstances and^{as per agreedterms and} conditions it is only the^{builderwho is liable to pay the} defaulted amount to^{the applicantbank.}

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In the light of the above^{discussions, the present 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 applicant bank and} direct the defendant^{no. 3 to pay to the applicant bank} within 30 days from^{today, a sum of Rs.17,88,803'55} along with cost,^{expensesand interest @ L0.75o/ofrom} 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 moftgaged property} bearing Ftat No.^{B-4, Ground Floor, Block-B,measuring} 935 sq. ft.^{(super Area) in ERA Divine court situated at} sector-5, Palwat,^{Haryana. In case of short fall, the} same shall be^{recoveredfrom 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,^{DebtsRecovery Tribunal-Il,} -*./ Delhi. €"),

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€"),

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TANO. 1830of2023 5

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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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Pafties are directed to appear before the Ld. Recovery Officer, DRT-II, Delhi on 22.07.2026. Pending IAs, if any, stand disposed of.

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File be consigned to records.

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Date : 22.05.2026

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t) (SUSHIL KUMAR RAgI OGI) PRESIDING OFFICER DRT-II, Delhi

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This^judgement has been signed I dated and pronounced in open court. 9A :22.05.2026 (susHrl KTTMAR RASTOGT) PRESIDING OFFICER I DRT-II, Delhi

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(susHrl KTTMAR RASTOGT) PRESIDING OFFICER DRT-II, Delhi

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Union Bank of India (E-Corporation Bank) v. Smt Madhu Chaturvedi

Case brief

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Union Bank of India (E-Corporation Bank) v. Smt Madhu Chaturvedi

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