Case Law Analysis
|Supreme Court of India
Borrower Refund Limited to Personal Funds | Section 23 CPA 1986, Tripartite Home Loan : SC
The Supreme Court ruled that a homebuyer can recover only the amount paid from personal savings in a tripartite loan arrangement when the builder defaults, not the bank-disbursed loan. It awarded Rs 1.27 crore (personal funds) with 12% interest plus Rs 15 lakh compensation, while confirming the bank’s Rs 2 lakh service deficiency. This clarifies refund limits for buyers financed via builder-bank-buyer tripartite agreements.