STATE BANK OF INDIA vs MR RAKESH KRISHAN PRAKASH on 2 November 2026

FINAL ORDER

This original application has been filed by the applicant ban( on 23.08.2019 through Mrs. Rachna Ahuja, Chief Manager of the applicant bank, under Section 19 of the RDB Act, 1993 against the defendants for recovery of a sum of Rs.1,00,40,053/- together with cost, charges and pendentellite and future interest @9.15olo p.a. from date of filing of this O.A. till the realization in full.

2. The brief facts of the case are that at the request of the defendant nos. i, the applicant bank sanctioned a Housing Loan Facility of Rs.1,07,00,000/-, vide sanction letter dated 31.05.2017 for purchasing an under-construction Unit/Flat/ Apartment bearing No. Flat No. T-!2, Ground Orion Galary, Sector-68, Gurgaon, Haryana-122001. The defendant no.2 was the builder/owner and he- was--constructing residential 9-,I Shri Subodh Kumar applicant bank. Defendant no.1 27.02.2025. Defendant no.2 19.01.2023.

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units. A Tripartite Agreement dated 3L.05.20L7 executed between defendant nos.1 & 2 with applicant bank. The aforesaid facility was secured by mortgage of the aforesaid propefi.

3. It is further submitted 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 account by visits and letters, but there was no response from the defendants, hence the account was classified as NPA dated 10.04.2019. Therefore, the applicant bank served a recall notice dated 01.05.2019 to the defendants, demanding the amount due as on that date, but failed to recover the sarne. Thus, the present O.A.ff.A. is,preferred by the applicant bank to recover its dues.

4. On notice by this Tribunal, defendant no.1 put appearance through counsel but failed to file written statement and the right to file written statement of defendant no.1 was closed vide order dated 19.01.2023. Thereafter, the defendant no.1 failed to put appearance in the matter. Accordingly, the defendant no.l was proceeded against exparte on 27.02.2025. The defendant no.2 failed to put appearance at all, despite publication. Accordingly, the defendant no.2 was proceeded against exparte on 19.01.2023.

5. The applicant bank has filed evidence by way of affidavit of Ms. Rachna Ahuja, Chief Manager of the applicant bank as Annexure A-1 to Annexure A-15. a

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6. Heard the Ld. Counsel of applicant bank and perused the records. From perusalofthe 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 borrower. Para 2 of the Tripartite agreement is as follows: - "2. That the Builder agrees that it has no objution to the Borrower(s) moftgaging the sid flat with proportionate share in land to the SBI as srcurity for the said loan agred to be aduancd by the 5BI for the purpose of purchase/construction of the said flat. In the event of default in the repayment of loan and/ or the Borrower(s) committing any other default which makes the Borrower(s) liable for the repayment of the entire amount ouffianding in the sid loan as per the terms of the Loan Agrement executd betwen the Borrower(s) and the SBI, the Builder shall, at the call of SBI, fu under obligation to cancel the booking and pay all the amounB received by the Builder from the Borrower(s) or on behalf of the furower(s) to the SBI.'

7. As per conditions contained in the Tripartite Agreement dated 30.05.2017 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 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 of the construction of the flat. Moreover, from the perusal of the entire facts it is o TA NO. 660/2024

apparentthatthe 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.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 borrower has also paid the margin money to the builder and also paid certain 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 !s only the builder who is liable to pay the defaulted amount to the applicant bank.

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

ORDER

1) I hereby allow this T.A. of the applicant bank and direct the defendant no. 2 to pay to the applicant bank within 30 days from today, a sum of Rs.1,00,40,053/- along with cost, expenses and interest @8.70olo from the date of Rting of this O.A. which has become T.A. till the date of realization.

2) In case of failure to deposit the above amount within the stipulated period, the same shall be recovered from the *" gtd.: mortgaged property TA NO. 66012024 s bearing Flat No. T-12, Ground Orion Galary, Sector-68, Gurgaon, Haryana-122001. In case of short fall, the same shall be recovered from the sale of personal movable and immovable assets of the defendant no. 2.

3) Recovery Certificate be issued forthwith and be sent to Recovery Officer, Debts Recovery Tribunal-Il, Delhi.

4) The registry of this Tribunal is hereby directed to issue free copy of the order and send the same to both the parties.

5) Parties are direct to appear before the Ld. Recovery Officer, DRT-II, Delhi on 04.01.2027. Pending IAs, if any, stand disposed of. File be consigned to records. Date : 02.11.2026 9A\ (SUSHIL KUMAR RASTOGI) PRESIDING OFFICER DRT-II, Delhi This judgement has been signed, dated and pronounced in open court. Date : 02.11.2026 (.\ (SUSHIL KU MAR-RASTOGI) PRESIDING OFFICER DRT-II, De|hi