Banking – Foreclosure / pre-payment charges – Sole proprietor – Although the loan was sanctioned in the name of a sole proprietorship firm, the natural person owning the sole proprietorship firm is liable – In law, therefore, the bank sanctioned credit facility to a natural person, albeit in the name of the sole proprietorship firm owned by such natural person – bank not entitled to such charges . [PLRonline]
“Reserve Bank of India by its circular dated May 7, 2014 dealt with the levy of foreclosure charges/prepayment penalty on ...
