Borrower-service provider dispute: No liability on financier

The consideration payable for the flat is a matter between the builder and the buyer, and the financier is not concerned with a dispute between the buyer and the seller

Jehangir B Gai  |  New Delhi 

Jehangir B Gai

If there is a defect in a product or deficiency in service, can the financer be held liable along with the seller or service provider? Usually, the financer is roped in but is this necessary or legally permissible? This intriguing question has been answered by the National Commission in a recent judgement delivered on July 1, 2019, by Dinesh Singh for the bench, along with S M Kantikar.

Sangwan Heights, a company engaged in building and land development, had taken a loan from Kotak Mahindra Bank. As there was a default in payment, the bank initiated proceedings before the Debt Recovery ...

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First Published: Wed, July 03 2019. 23:53 IST