Akshay Gupta vs. Icici Bank Limited

2025 INSC 391
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.1708 OF 2023
AKSHAY GUPTA & ORS. …APPELLANTS
VERSUS
ICICI BANK LIMITED & ORS. …RESPONDENT
WITH
CIVIL APPEAL NO.1709 OF 2023
AND
CIVIL APPEAL NO.2828 OF 2023
AND
CIVIL APPEAL NO.4336 OF 2023


J U D G M E N T
VIKRAM NATH, J.
1. This is a classic case where wisdom dawned upon the
three parties in a commercial arrangement to settle
the dispute amicably, of course, with a little effort by
Signature Not Verified
Digitally signed by
NEETU KHAJURIA
Date: 2025.03.25
18:10:47 IST
Reason:
the Court. The three parties, being the borrower/flat
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 1 of 15


owners, the builder and the Bank – the lender. Under
the agreement between the parties, there were
respective obligations on each of the parties to be
fulfilled, in which there were defaults at the end of
each of the parties to some extent. The present
appeals have been preferred under section 23 of the
Consumer Protection Act, 1986 against the common
judgment and order dated 02.01.2023 passed by the
1
National Consumer Dispute Redressal Commission
rejecting the consumer complaints of the appellants
(Flat buyers). The relief claimed in the complaints
before the NCDRC was for quashing of the loan recall
notice issued by the Bank alleging unfair trade
2
practices and violation of Reserve Bank of India
guidelines.

2. We need not mention detailed facts as the same have
been appropriately recorded in two orders of this
Court dated 23.10.2024 and 06.11.2024. In the order
dated 23.10.2024, broadly, the settlement had been
arrived at, however, instructions were to be taken on
certain issues, for which time was granted. Finally, in

1
NCDRC
2
RBI
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 2 of 15


the order dated 06.11.2024 all the terms of the
settlement with respect to all the four appeals had
been recorded. Both the orders as such are
reproduced hereunder: -

2. Insofar as the appellants in three appeals
mentioned in the table are concerned, the
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 3 of 15


appellants have agreed to settle the
outstanding principal amount upfront
subject to certain adjustments under which
they would be entitled to benefits from the
Bank as also the Builder - Rajsanket Realty
Ltd. (for short, ‘the Builder).

3. Mr. Ritin Rai, learned senior counsel
appearing for the Bank, upon instructions,
submits that the Bank would completely
waive the outstanding charges and will give
a discount of 30% on the pre-EMI provided
the entire outstanding principal amount is
settled upfront and the remaining pre-EMI
amount is also paid within any reasonable
time granted by this Court.

4. Learned counsel for the appellants
submitted that the 30% discount, which the
Bank has extended on the pre-EMI amount,
should be credited to the benefit of the
appellants and as the Builder has agreed to
pay 50% of the pre-EMI amount, the same
would be paid by the Builder either to the
appellants and thereafter the appellants
may transfer it to the Bank or the Builder
may directly deposit with the Bank subject
to directions being issued to the Bank to
accept the same from the Builder in the loan
account of the appellants.

5. A further request has been made by the
learned counsel appearing for the
appellants in Civil Appeal Nos. 2828 of 2024
and 4336 of 2023 that the appellants have
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 4 of 15


paid certain amount towards pre-EMI, after
the Builder defaulted in making the said
payments, and as such the 5% outstanding
amount, which they have to pay to the
Builder towards club charges and other
balance consideration, the same may be
waived or the Builder may be asked to pay
the said amount under the head of pre-EMI,
which the appellants have paid to the Bank.

6. Learned counsel for the Builder upon
instructions has agreed to pay 50% of the
outstanding pre-EMI. It is further directed
that the learned counsel appearing for the
Builder may obtain instructions as to
whether the Builder would prefer to waive
the 5% outstanding sale consideration or
get the amount of pre-EMI paid by the
appellants to the Bank adjusted against the
said 5% balance sale consideration.

7. In Civil Appeal 1709 of 2023, it is stated
that the appellants have already settled the
matter with the Bank and as the Bank has
already received its entire settlement
amount, it would issue NOC upon closure
of the present pending appeal.

8. Two issues which survive in Civil Appeal
No.1709 of 2023 is between the Builder and
the appellants. As, according to the learned
counsel for the appellants, the appellants
have also paid certain amount towards pre-
EMI against the default of the Builder, and
have also paid the outstanding pre-EMI on
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 5 of 15


the date of the settlement after receiving
30% discount from the Bank, and would
like an adjustment and/or paid by the
Builder of both the amounts of pre-EMI
against the balance 5% sale consideration
to be paid to the Builder. On this aspect
also, learned counsel appearing for the
Builder, shall obtain instructions.

9. Learned counsel appearing for the
appellants will provide the details to the
Builder about the pre-EMI amount paid by
the appellants to the Bank, within a week
from today, so that the Builder may obtain
instructions on the same.

10. Whatever be the outcome of 5% sale
consideration and the additional pre-EMI
paid by the appellants, the same will not
come in the way of the closure of these
appeals and the decision of this Court will
be final and binding on the parties.

11. In the meantime, the appellants will
continue with the process and start making
the payment to the Bank towards the
outstanding principal amount as also the
outstanding pre-EMI amount, which the
Bank, after calculating the interest upto
15.11.2024 and 30.11.2024, intimate to the
respective parties within a week from today.

12. List these matters on 06.11.2024 for
consideration of-
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 6 of 15


(i) whether the amounts have been duly
communicated or not;

(ii) clarification on the issue of 5% additional
pre-EMI payment between the appellants
and the builder and payment of pre-EMI of
the defaulted amount and the outstanding
amount.



XXXXXXXX XXXXXXX XXXXXXX




ORDER
(DATED 06.11.2024)


1. A detailed order was passed on 23rd October,
2024 granting time to the parties to provide
necessary details and also obtain instructions.

2. Today, ICICI the Bank has produced the chart
of the outstanding amount with respect to Civil
Appeal Nos. 1708 of 2023, 4336 of 2023 and
2828 of 2023. The said chart gives the details of
the outstanding amount of the principal and also
the preEMI to be paid by the Builder as also the
borrower. The interest calculated is up to 30th
November, 2024. The said chart is reproduced
hereunder :

CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 7 of 15


Chart showing the outstanding amount payable

3. Learned counsel appearing for the Builder Shri
Viraj Kadam, upon instructions, has stated that
the Builder will pay the outstanding amount of
pre-EMI, as mentioned in the above chart, latest
th
by 20 December, 2024. Further, the learned
counsel for the borrowers-appellants in the above
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 8 of 15


three appeals, upon instruction, have stated that
they will pay the outstanding amount payable by
them, as indicated in the above chart, to the
respondent-Bank within a week from the date the
Builder makes the deposit with the Bank, as
indicated above.

4. Learned counsel for the Bank has submitted
that as the interest is calculated up to 30th
November, 2024, the parties may be directed to
make the deposit accordingly on or before the
said date or otherwise, the Bank may submit a
fresh Chart with interest calculated up to 31st
December, 2024.

5. We are not inclined to accept the request of the
Bank considering the fact that the Builder as also
the borrowers-appellants have agreed to clear the
entire outstanding amount, as agreed, including
the principal amount. We direct that the Bank
would be entitled to interest up to 30th
November, 2024. In case, the Builder or the
borrowers-appellants commit default in not
making the payments, as noted above, the
request of the Bank for interest beyond 30th
November, 2024 would be considered.

6. Insofar as the adjustment of the pre-EMI paid
by the borrowers-appellants to the respondent-
Bank, as against the 5% outstanding amount, to
be paid by the borrowers-appellants to the
Builder is concerned, Shri Viraj Kadam, learned
counsel for the Builder has stated that the
Builder will repay the pre-EMI, paid by the
borrowers-appellants to the respective
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 9 of 15


borrowers-appellants, within the same time i.e.
before 20th December, 2024 and the borrowers-
appellants may pay the balance 5% of the sale
consideration to the Builder within a week
thereafter, as indicated above.

7. Insofar as the appeal of Ravi Agrawal in Civil
Appeal No. 1709 of 2023 is concerned, which
does not involve the Bank but only settlement is
to be arrived at between the Builder and the
borrower(s)- appellant(s), according to Shri Viraj
Kadam learned counsel appearing for the builder
has agreed to pay the 50% of the pre-EMI
outstanding amount, which the borrower(s)-
appellant(s), had paid directly to the Bank within
the same time i.e. before 20th December 2024.
Shri Kadam, learned counsel further submits
that the additional pre-EMI amount prior to the
settlement with the Bank paid by the
borrower(s)- appellant(s) will also be paid to the
borrower(s)- appellant(s) by the Builder within
the same time whereupon within a week
thereafter, the borrower(s)- appellant(s) may pay
the 5% balance of the sale consideration to the
Builder. Learned counsel for the borrower(s)-
appellant(s) agrees to the said terms and states
that after receiving the additional pre-EMI
amount as also the 50% of the outstanding pre-
EMI amount, the borrower(s)-appellant(s) shall
pay the balance 5% of the sale consideration to
the Builder within a week.

8. Let the parties comply with the aforesaid terms
and conditions and ensure that the timeline is
maintained regarding the payment.
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 10 of 15



9. It is also directed that the Bank, upon
receiving the entire amount, shall issue the NOC
to the Borrowers-appellants forthwith in all the
four cases.
10. List these appeals on 8th January, 2025.”


3. When the matter was taken up on 09.01.2025,
learned counsel for the parties had informed us that
all the directions contained in order dated
06.11.2024 have been complied with by the parties.
Accordingly, two weeks’ time was granted to the
appellants to file the relevant documents relating to
proof of deposits and the No Dues Certificate to be
issued by the Bank to enable the Court to pass the
final orders and conclude the proceedings. All the
four appellants filed their affidavits before
23.01.2025 when orders were reserved.

4. We have perused the affidavits and we find that full
compliance of the terms and conditions undertaken
by the three parties has been done satisfactorily. The
Bank had extended the discounts, the builder had
discharged its obligations of payment of its share of
pre-EMI and the borrowers had discharged their
CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 11 of 15


obligations by making the deposits with the Bank of
the outstanding amount and also paying to the
builder the 5% of the sale consideration which was
outstanding.

5. We need not go into the details as the same is an
admitted position. The Bank has also issued
certificate stating that nothing further remains. The
Bank has no further claim or right whatsoever
against the appellants with respect to the facilities
provided for the respective apartments.

6. Only three small issues have been flagged by the
appellants, which need further clarification from this
Court:

i) The Bank be directed to remove the word
‘settlement’ used in the loan account statement
as it may affect future loan facilities being
availed by the appellant. As such, the Bank be
requested to delete the word ‘settlement’ and
substitute it by the word ‘re-paid’.

CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 12 of 15


ii) The apartments purchased by the appellants
are ready and some minor work remains which
the builder may complete forthwith and hand
over possession to the appellants. It is also
submitted that builder has already handed over
possession in the said building to many other
flat-owners.

iii) Another small issue raised is that the builder
has not issued acknowledgment of the
payments made by the appellants pursuant to
the order dated 06.11.2024.

7. Considering the facts and circumstances of the case
and the fact that upfront payment has been made by
the borrower/appellants under orders of this Court,
we are of the view that the loan account should be
closed treating it as repaid or fully paid up. Mr. Viraj
Kadam, learned counsel appearing for the builder,
upon instruction, stated that the possession would
be handed over on or before 31.03.2025. This takes
care of the second issue raised. The third issue raised
is only formal.
8. Accordingly, the following directions are issued: -
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i) The Bank will accordingly make the necessary
incorporations in their records, as noted above.
ii) As stated by Mr. Kadam, learned counsel for the
builder, let possession of the apartments, fully
completed in all respects as required under law,
be handed over to the appellants on or before
31.03.2025.
iii) With respect to the third issue, the amount
having been paid by the appellants to the
builder by way of Bank transfer, even if no
receipt is issued, the proof of payment is
certified by the Bank, but still, the builder is
directed to issue acknowledgment in writing to
have received the entire due amount.

iv) One last thing which remains is that the Bank,
which had initiated recovery proceedings before
the Debt Recovery Tribunal or before any other
Forum with respect to the loan in question of
the four appellants, shall forthwith withdraw
the same, in view of the loan having been
satisfied in all the four cases.

CIVIL APPEAL NO.1708/2023 ETC. ETC. Page 14 of 15


v) Further, appellant Ravi Agrawal or any other
appellant who had initiated proceedings before
the Real Estate Regulatory Authority shall
withdraw such cases.

9. Thus, all matters between the parties stand closed
and there shall be complete quietus to the litigation.
The appeals stand disposed of accordingly.

………….........................J.
[VIKRAM NATH]


………….........................J.
[SANJAY KAROL]
NEW DELHI
MARCH 25, 2025
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