https://www.taxtmi.com/caselaws?id=289191 A contractual clause requiring prior written approval for premature repayment authorised the lender to impose a foreclosure premium on loan prepayment, as the borrower remained bound by the agreed terms and the corporation could protect itself against loss from early closure of fixed-rate lending. However, a later circular increasing the premium from 1% to 2% could not be applied retrospectively to a loan sanctioned under the earlier regime. The HC therefore confined liability to the earlier 1% premium and held that any excess amount collected was refundable. en-us Tue, 21 Aug 2007 00:00:00 +0530 Sat, 18 Jul 2020 16:58:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289191 A contractual clause requiring prior written approval for premature repayment authorised the lender to impose a foreclosure premium on loan prepayment, as the borrower remained bound by the agreed terms and the corporation could protect itself against loss from early closure of fixed-rate lending. However, a later circular increasing the premium from 1% to 2% could not be applied retrospectively to a loan sanctioned under the earlier regime. The HC therefore confined liability to the earlier 1% premium and held that any excess amount collected was refundable. Case-Laws Service Tax Tue, 21 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289191