ADCC 232/2025

Overview

The dispute involved a credit facility claim filed by a bank, which was rejected on the basis the facility exceeded regulatory loan limits and lacked proper collateral, so the lawsuit was inadmissible.

Background

An Appellant bank filed lawsuit No. 3321/2024 (Commercial - Simple - Abu Dhabi) seeking a judgment to compel the respondent to pay AED 800,442.34, plus compensation of AED 100,000.00, and legal interest of 12% from the date the lawsuit was filed until full settlement. The claim had been based on a credit facility agreement dated 15 June 2002, between the bank and the Respondent, whereby the Respondent obtained two personal loans: AED 622,602.90 and AED 197,819.44. Consequently, the Respondent had an outstanding balance of AED 800,442.34 but failed to repay the debt, prompting the Appellant to file the lawsuit.

Proceedings

Court of First Instance – Decision dated 31 December 2023.

On 31 December 2024, the Court of First Instance ruled the lawsuit inadmissible. The Appellant bank appealed this ruling as Appeal No. 30/2025.

Appeal Court – Appeal No. 30/2025 – Decision dated 22 January 2025.