ADCC 285/2025
A dispute arose over unpaid Murabaha facilities, where a loan had been restructured. Issues included the validity of the loan because of its compliance with requirements on guarantees and lending to individuals.
Background
A bank sued a client for AED 909,440.55, plus compensation for late payments and translation fees, stemming from unpaid Murabaha (Islamic finance) facilities. The client had restructured his debt with the bank in 2014 but stopped paying in August 2024.
Proceedings
The Court of First Instance rejected the suit, but an Appeal Court ruled in favour of the bank, ordering the client to pay AED 909,440 plus AED 5,000 in compensation. The client appealed this judgment to the Court of Cassation.
Appeal before the Abu Dhabi Court of Cassation
Submissions