ADCC 528/2024
This dispute involved a bank's claim for unpaid facilities and unreturned guarantee letters following the default of a company it had financed. The bank sought to hold both the company and its guarantor partners jointly liable, based on a loan agreement and related guarantees issued in connection with various banking facilities.
Background
An Appellant bank filed suit No. 1124/2023 (Abu Dhabi Commercial Court of First Instance) against the Respondents, seeking a judgment ordering them to pay an amount of ... dirhams, plus legal interest at 12% from the date of the lawsuit until full payment. The bank also sought the return of the originals of guarantee letters that had not been cashed, along with court fees, expenses, and attorney’s fees.
The bank's claim was based on a loan agreement dated on 29 March 2018, and its amendments, whereby the bank granted various banking facilities to the second Respondent company, guaranteed by the first and third Respondents. The Respondents failed to repay their debt, resulting in the outstanding amount claimed, plus twenty guarantee letters that remained uncashed.
Procedures
Court of First Instance – Decision dated 19/02/2024.