Tripartite Real Estate Financing, Unjust Enrichment, and Consumer Claims: Supreme Court Analysis

sketch of the Supreme Court of India
Case
K. MADHUSUDHAN RAO v. M/S LODHA HEALTHY CONSTRUCTIONS AND DEVELOPER PRIVATE LIMITED (LHCPL) (Supreme Court of India, 15-10-2026)
Law
Consumer Protection Act, Indian Contract Act.

Highlights of the Judgment:

  • Analysis of the doctrine of unjust enrichment in tripartite real estate financing arrangements.
  • Examination of a borrower's entitlement to a refund limited to out-of-pocket payments versus loan-disbursed amounts.
  • Interpretation of contractual interest rates and the prohibition against double compensation for rent and interest.
  • Standards of proof required to establish deficiency in service against a financing bank for premature loan disbursements.