KCC 508/2016
This case involved whether a bank was able to raise interest rates on a customer's loan. A key point was whether the bank had followed Central Bank Orders.
Background
A company filed a case against the director of a bank and the governor of the Central Bank. The company requested the court to order the director to dismiss a loan agreement which had been signed between the two parties. The company said that the bank had increased the interest rate on the loan without legal justification.
The court dismissed the case.
The company appealed the ruling before the court of appeal. The court dismissed the appeal and upheld the appealed ruling.
The company appealed the ruling before the court of cassation. The company said in its grounds of appeal that the ruling had erred in the application of law and had insufficient evidence of causation. The company said that it had maintained before the court that the bank had violated the contract by increasing the interest rate but the court had dismissed this defence.