Legal Question in Credit and Debt Law in India
Loan
A renowned finance company assured an applicant that for a loan amount of Rs 22000 the EMI would not be excessive of Rs 1125 for 24 months. While only after two months the applicant came to know that he had signed for an EMI of Rs 1125 for 36 months. He dragged the company to Consumer forum for cheating and was awarded for mental agony caused and cost of the petition. Aggrieved the company approached the National Commission claiming that the judiciary can not interfere in a contract deal signed by the parties just on the basis of the complainant�s version.. Rejecting the appeal the National commissioned held it was unfair trade practice to claim almost double the amount of a small loan of Rs 22000 by way of 36 EMIs irrespective of the contract. Can a forum indulge in to change the terms of advancing loan on grounds of unfair trade practice
2 Answers from Attorneys
Re: Loan
yes 100%
Re: Loan
Yes, if a contract has been obtained by fraud and misrepresentation by the financier, the same may be vitiated in law.
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