ADCC 873/2020
The original dispute involved the right to sell shares used as a guarantee in a mortgage. A key point was whether the Dubai or Abu Dhabi Courts had jurisdiction.
Background
An Appellant filed suit No. 1098/2020 against the Respondent, requesting permission to sell a mortgaged property in favour of the bank consisting of 4,481,724 shares of Abu Dhabi Islamic Bank and 4,025,008 shares traded in the Abu Dhabi market at the Emirates Development Bank in order to guarantee the value of his debt balance of 29,327,620,055 AED.
The Appellant explained that the Respondent was s a partner, manager, and guarantor of the debts of the (Company - to which the Appellant bank had granted credit facilities under the guarantee and of its partner and manager - the Respondent. The latter had signed the mortgage agreement by pledging a number of shares owned by him personally to the Abu Dhabi Securities Exchange, which werefrom the shares of Abu Dhabi Islamic Bank and Al Dar Company referred to.