Whether National Consumer Disputes Redressal Commission (NCDRC), has the jurisdiction to interfere with banking operations, which is the exclusive statutory domain of the RBI? – Hongkong and Shanghai Banking Corp. Ltd. Vs. Awaz and Ors. – Supreme Court
December 24, 2024
The Hon’ble Supreme Court held that NCDRC has no jurisdiction to re-write the said terms of the contract entered between the banks and the credit cardholders, which the parties have mutually agreed to be bound by. It is correct to say that the National Commission has been duly empowered under the statute to set aside unfair contracts, which may symbolise a single will or are unilaterally dominant or incorporate terms which are unfair and unconscionable. However, the rate of interest, charged by the banks, determined by the financial wisdom & directives issued by the Reserve Bank of India, and is duly communicated to the credit card holders from time to time, cannot be in any manner unconscionable or unilateral. The credit card holders are duly educated and made aware of their privileges and obligations, including timely payment & levying of penalty on delay.