Buyer shouldn't pay for bank's mistake

Despite the State Commission having concluded that there was deficiency in service on the part of the bank, it had not been held liable

Pandav Roy had entered into an agreement with Merlin Projects for the purchase of a row house in a complex called “The Terrace” at Merlin Greens in South 24 Parganas. The total consideration was Rs 14,25,000, of which Roy paid Rs 2,43,750 as earnest money.

Roy approached Union Bank of India to obtain a home loan of Rs 15 lakh. Upon sanction, a tripartite agreement was executed on January 21, 2004, which required the bank to pay the builder the balance of Rs 13,81,250 towards the row house, and the remaining amount of Rs 1,18,850 for registration of deed of conveyance.

Roy