Allowed

Union Bank of India v. Ms. Prachi Shukla

DRT27 Jul 2026TA/241/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application, directing the builder to repay an outstanding loan of Rs. 15,86,049 based on liability terms in a tripartite agreement, holding the borrower not liable for double penalty.

What did the court decide?

Directed defendant no.3 (builder) to pay Rs. 15,86,049 along with interest and costs within 30 days; recovery certificate to be issued forthwith.

Union Bank of India versus Ms. Prachi Shukla — Contract and Commercial Disputes | DRT (2026)

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Before^{SUSHILKUMARRASTOGI'Presiding Officer} Debts^{RecoverYTribunal-Il' Delhi} TAt24tl2024 UNION^{BANKOF TTOT;,VS'-iS'PRACHISHUKLA& ORS'}

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Reserved^on : 11'O6'2O26 Pronounced^{on z 27'07'20.26}

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Union^{Bank of Inda} VS, 1. Ms.^PrachiShukla 2. Sh.^{Rajesh Kumar TriPathY}

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M/s^{Elegant Infraconh/t Ltd'}

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-^{ApPlicant bank}

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Defendants

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Present:^{Sh. Samrendra Kumar' Counsel appears} for aPPlicant^bank'

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Defendans^{are exparte since 11'06'2024'}

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FINAL^ORDER

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This original^{application has been filed by the} applicant^{bank, on 11'05'2018through Mr'TlwariAjay} Kumar^{Deepak,Chief Manager of the applicantbank'} under^{Section 19 of the RDB Act' 1993 against the} defendant^{no. 1 to 3 for recovery of a sum of} Rs.15,86,049/-^{together with cost' charges and} pendentellite^{and futureinterest @ 12'50o/op'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} requestofthedefendantno'1&2theapplicantbank sanctioned,^{on 09'01'2013,a Home Loan Facilityof} Rs.19.50^{Lacs for purchaseof an under construction} Unit No.^{E-1605, 16u' Floor'Tower/Blcok-E'} admeasuring^{880 sq'f in ElegantVille situated at Plot} s.':

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no. GH-06B,^{Sect-Tech Zone O4' Greater Noida' Dist'} Gautam^{Budh Nagar, UP from defendantno'3' The} defendant^{no.l have agreedwith terms and condition} and acknowledge/sign^{the CSI dated 09'01'2013and} alsoexecutedtherelevantloaningdocumentsdated 15.02.2013.^{The aforesaid credit facility was secured} by moftgage^{of the propertymentionedabove' A} Tripartite^{agreementdated 15'02'2013has been} entered^{into between the defendantno'1' appticant} bank^{and defendant no'3'}

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It^{is further submitted that the defendants} enjoyed^{and utilized the Loan facility'but faited to} maintain^{the financialdisciptine and failed to repay} the due^{amounts' The applicantbank requestedthe} defendants^{to regularizethe loan accountby visits} and^{letters,but there was no response from the} defendants,^{hence the accountwas classifiedas NPA'} Therefore,^{the applicant bank serued a demand notice} dated^{30.04.2018to the defendants' demandingthe} amount^{due as on that date, but failed to recoverthe} same.^{Thus, the present O'A' is preferred by the} applicant^{bank to recover its dues'}

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4 On notice^{by this Tribunal'defendants failed to} desPite Publication^and put apPearance^{at all'} were Proceeded^against accordinglY^defendants exparte^{on 11.06'2024'}

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5.^{The documentary evidence filedby the applicant} bank along^{with the OA from paperno' 2L to ll7} have^{gone unchallenged and un-rebutted'}

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6.^{Heard the Ld' Counsel of applicantbank and} perused the^{records' From perusal of the recordit is} clear^{that at the time of executing loan documents} the applicant^{bank has entered into a Tripaftite} Agreement^{with the builder along with the borrower'} The^{Ld. Counsel for the applicant has submiftedthat} the builder^{stooddischargedfrom the proceedings} before^{the Ld. NCLT in February'2O24' Para 3 of the} Tripartite^{agreement is as follows:-}

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'3. That^{in the event of the Borrowerand or} buitder/tandownerfaitingtocompletethegle tansaction^{and registrationtheraf as per the} agreement^{betwen the Buitder/l-andOwner&} Bonower,^{the Builder/Land Owner undeftakes and} agrees^{to returnalt the money rueivdby him' in} connection^{with amountdisburcd by the Bank to the} BorrowerforpurchaseoftheFlatinquestionwith interest^{to the Bank''}

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As^{per conditions containedin the Tripaftite} Agreement^{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 presentcase the borrower has made} default^{in repaymentof the EMIs and therefore'as} per condition^{agreed between the parties' the builder} is under^{obligationto returnthe entire amountwhich} he has^{receivedfrom thq borroweror from the} 9tr'.

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applicant^{bank in lieu of the payment of the} construction^{of the flat' More over' from the perusal} of the^{entire facts it is apparentthat the borrowerhas} taken the^{loan and the loan amounthas been paid to} the builder^{for constructionof the flat' The applicant} bank^{has not claimed that the builder in violation of} the terms^{and conditions has handedover the flat to} the defendant^{no'l & 2' The borrower has not taken} any amount^{in his account and the entire amounthas} been^{paid to the builder' In addition to this the} borrowerhasalsopaidthemarginmoneytothe builder^{and also paid certainEMIs 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 penalityon the} borrower.^{The borrower has received no moneyand} has still^{paid the margin moneyand also certainEMIs} to the^{bank and has got in return nothing' In such} circumstances^{and as per agreed terms and conditions} itisonlythebuilderwhoisliabletopaythedefaulted amount^{to the aPPlicantbank'}

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In^{the light of the above discussions' the} Original^{Application deserves to be allowed against} defendant^no'3.

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ORDER

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I^{herebYallow this O'A'of the APPlicantBank} and direct^{the defendantno' 3 to pay to the applicant} bank within 30^{daYs from today' asum of} s,\

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Rs.15,86,049/-^{along with cost' expenses and interest} @^{10.50o/ofrom the date of filing of this O'A' which} has become^{TA till the date of realization'}

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In case^{of failure to deposit the above amount} 2) within^{the stiPulatedPeriod'the same shallbe} recovered^{from the sale of the mortgagedpropertY} bearing^{no. Unit No' E-1505'16s Floor' Tower/Blcok-} E, admeasuring^{880 sq'f in ElegantVille situated at} Plotno.GH-06B,Sect-TechZone04'GreaterNoida' Dist.^{Gautam Budh Nagar' UP' In case of short fall'} the same^{shall be recovered from the sale of personal} movable^{and immovableassets of the defendant no'} 3

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Recovery^{Certificate be issuedfofthwithand be} Debts^{Recovery TribunaFll'} sent^{to RecoveryOfficer'} Delhi.

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4)^{The registry of this Tribunal is hereby directedto} 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'} s) Officer,^{DRT-II, Delhi on 28'09'2026'} Recovery Pending^{IAs, if any, stand disposed of'}

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Fite be^{consigned to records'}

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Date t27.07.2026

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sA (susHIL KUMAR^RASTOGI) PRESIDING^OFFICER DRT-II,^Delhi

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This^{judgement has been signed' dated and} pronounced^{in oPen court'}

.'.-.--J

((^

Dale:27.07.2026

( su s H I L rU-l,rnfriisrocr ) PRESIDING^OFFICER DRT-II,^Delhi

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Union Bank of India v. Ms. Prachi Shukla

Case brief

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Union Bank of India v. Ms. Prachi Shukla

Case brief

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