CORPORATION BANK Vs. MASOOD AHMED KHAN

JUDGEMENT

(1.) -THE present Revision Petition is preferred against the order dated 26. 7. 2007 passed by the State Commission, New Delhi in Appeal No. 346/07. The Petitioner Corporation Bank is the Opposite Party in Complaint Case No. 921/2005 filed in the District Forum (East), Saini Enclave, New Delhi by Shri Masood Ahmed Khan, Smt. Usma Khan. Brief facts of the case are as under: facts of the case:

(2.) RESPONDENT No. 1 and his wife Respondent No. 2, (original Complainants) wanted to acquire an urban property and entered into an agreement with the developer M/s. Kranti Builders and Engineers Pvt. Ltd. , Respondent No. 3, (opposite party before the District Forum) for purchase of a built-up space under the name and style of Kartik Villa at Plot No. 23b, Shalimar Garden Extension I, Sahibabad, U. P. According to this "agreement to sell" dated 10. 3. 2004, Respondent Nos. 1 and 2 were required to pay Rs. 10 lakh for the property admeasuring super built area of approximately 1400 sq. ft. to Respondent No. 3 in instalments depending on the progress of work. An advance payment of Rs. 5,000 was paid in cash on the date of executing of the agreement. Another agreement called "construction Agreement" was signed on the same day by Respondent Nos. 1 and 2 with M/s. Maitrey Tiwari and Company whereby M/s. Maitrey Tiwari and Company, Respondent No. 4 was supposed to do certain additional works on the property for which it was agreed that Respondent Nos. 1 and 2 will pay Rs. 4,25,000. On the basis of both these agreements, Respondent Nos. 1 and 2 approached to the Corporation Bank, the present Petitioner with a loan application dated 7. 5. 2004, for grant of loan of Rs. 13,20,000 for purchase of the property.

(3.) THE Petitioner Bank processed the loan application and issued a sanction letter, "credit sanction intimation", dated 11. 5. 2004 in favour of Respondent Nos. 1 and 2. The communication addressed by the Petitioner to Respondent Nos. 1 and 2 stated that after acceptance of the terms and conditions of the loan to be sanctioned and after executing the prescribed security documents by the Respondent Nos. 1 and 2, the Petitioner Bank will arrange to release the money which is required to be repaid in 249 equated monthly instalments. On the next day, i. e. on 12. 5. 2004 an "agreement for term loan" was executed between the Petitioner and Respondent Nos. 1 and 2.