KCC 1451/2009
Type
Case
Court
Kuwait Court of Cassation
Jurisdiction
Kuwait
Taxonomy
General Banking & Finance Law, Regulation & Offences, Terms, General Contract Law, Lending & Security
Copyright
LexisNexis
Decision date
15 Jan 2012
Catchwords
Commercial Bank – Central Bank – Loan – Contract – Monthly payments – Expert’s report – Interest Rate
The original dispute involved a request by a customer that an expert review changes to loan rate interest and monthly payments by a bank to see if these were in line with Central Bank decisions. The key point made was that neither banks or their customers should modify the provisions or terms of a contract in respect of the law and what has been agreed upon by both parties.
Background
A client filed Case No. 3420/2008 against both the Commercial Bank and the Kuwaiti Central Bank requesting an expert be appointed to check if the loan rate interest cited in the contract was in line with the Central Bank's decisions as the bank had increased the number of monthly payments and rate interest which it was said violated the law as well as the terms of the contract. The Court examined the expert's report and declared the bank alter neither the loan rate interest nor the number and the cost of the payments. The Commercial Bank filed an appeal N 2942/2009 and the Appeal Court repealed the ruling and rejected the case on 27/10/2009.
Decision