The loan documents obtained by the bank are in a standard format of contract, standard clauses of the guarantee agreement have been widely adopted because the experience shows the facilitated grant of loan. In the banking transactions, while granting loan and obtaining loan documents, the banks do not compromise on the terms and conditions thereof. In such a contract standard form enables the banker to say "if you want loan or banking services at all, these are the only terms on which they are available. Take it, or leave it." It is a type of contract on which conditions are fixed by one of the party and upon to acceptance by the person appearing from the bank. The contract which, frequently, contain many conditions would present for the acceptance and is not open to discussion. It is settled law that a person who signs document which contains a contractual assumption in normal bound by them even though he is not ready, even though he has ignored all the precise legal effect. Law, in this behalf, is settled by the Apex Court in the case of Bihar A.C.B. v. Green Rubber Industry as back in the year 1989, 1991 S.C.C. 791. Thus, none of the contentions raised in this behalf can be accepted.
Bombay High Court
Central Bank Of India, A Body ... vs The Sion Bakers And Confectioners ... on 11 April, 2008
Equivalent citations: 2008 (110) Bom L R 1363
Bench: V Daga
