In Brief
A borrower challenged his home loan with HDFC, claiming the bank had misled him through an email stating interest would follow RBI's Prime Lending Rate. The borrower argued the bank should not have unilaterally increased the interest rate. The Supreme Court dismissed his appeal, holding that the signed loan agreement clearly provided for an adjustable rate tied to HDFC's own Retail Prime Lending Rate, not RBI's rate. Once the agreement was executed and the loan repaid, the borrower could not later challenge the rate increases. Courts should not set aside express contract terms based on pre-agreement emails, especially when the borrower was educated and had other lending options available.
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