ADCC 111/2023

The original dispute involved a default on an islamic finance agreement for the purchase of a property where a cheque provided to pay instalments had bounced. Issues included the correct time limit for appeal, and the validity of bank statements and the expert report as evidence. Also considered was whether the bank had charged illegal interest and failed to ensure the lender had necessary guarantees in place.

Background

A Respondent Bank filed Case No. 905/2022 against the Appellant, requesting to compel him to pay 4,231,712.16 AED.

The Respondent stated the Appellant had obtained banking facilities for real estate financing of 4,982,000 AED on 15/10/2017 from the Bank for a Villa in the city of Shakhbout in Abu Dhabi, and on the same date, a lease agreement was signed between the two parties on the real estate subject of financing. On 30/04/2018, three appendices were signed to the lease agreement between the two parties. The Appellant gave the bank a cheque for 219,006 AED, dated 21/07/2020 which was the same amount as six months of installments which were due. However, the cheque bounced and this prompted the Respondent to file the lawsuit.

Court of First Instance – Decision dated 31/10/2022.