KCC 509/2011
Type
Case
Court
Kuwait Court of Cassation
Jurisdiction
Kuwait
Taxonomy
Financial Institutions, Lending & Security, General Contract Law
Copyright
LexisNexis
Decision date
7 Feb 2011
Catchwords
Loan – Interest – Loan Contract – Repayment amounts – Term of Loan – Bank relationships
The original dispute involved a bank which had altered the amount of a loan and payment date from what had been detailed in the loan contract. A key point was that this was a long term loan and this impacted the bank's right to charge interest.
Background
A customer sued (Case No. 1721 in 2009 the Gulf Bank and the Central Bank of Kuwait for a breach of the provisions of Article 115 of the Kuwait Trade Law after it was alleged they had changed the amount of the loan and the payment date contrary to what had been agreed with the customer in the loan contract on 16/11/2003 when he obtained 15600 Kuwaiti Dinar from the Gulf Bank with variable rates of interest and monthly payments of 123 Kuwaiti Dinar for a period of 20 years (from 2003 to 2023).