ADCC 761/2023
This case involved a failure to make instalment payments on an islamic finance mortgage. Issues included whether the client had been given necessary warnings and if the force majeure defence applied because of COVID 19. Also considered was the validity of the expert report.
Background
An Appellant filed suit No. 191/2023, against the Respondent, requesting to compel it to pay 7,599,987.76 AED, and contractual interest at the EIBOR rate of 2.75%, with a minimum of 4.75% annually from the date of filing the lawsuit until full payment.
The Appellant explained that they had granted the Respondent a credit facility to be repaid in instalments by guaranteeing a real estate mortgage, but the latter had failed to pay the due instalments.
Proceedings:
Court of First Instance – Decision dated 20/06/2023.
The Court of First Instance appointed a banking expert and after he had deposited his report, the Court decided to oblige the Defendant to pay the Plaintiff bank 7,345,905.15 AED. The Defendant appealed this ruling with Appeal No. 1522/2023.
Appeal Court – Appeal No. 1522 of 2023 - Decision dated 15/08/2023.