(Trinidad and Tobago) whether a secured loan made to the Hindu Credit Union Co-operative Society Limited is enforceable by the lender. The credit union, represented by its liquidator, contends that it is not – either because the credit union had no legal power to receive any loan or deposit when its statutory maximum liability had been exceeded or because it acted unlawfully in doing so. In either case the consequence is said to be that the credit union has no contractual duty to repay the loan or to pay any interest on the loan and that the security given for the loan is likewise unenforceable. If this contention is correct, the lender is entitled to restitution of the sums advanced; but, as an unsecured creditor, it would only be likely to receive around 20 cents in the dollar in the liquidation.
Judges:
Lord Lloyd-Jones
Lady Arden
Lord Kitchin
Lord Leggatt
Lord Stephens
Citations:
[2022] UKPC 24
Links:
Jurisdiction:
England and Wales
Company
Updated: 01 June 2022; Ref: scu.678254