UAE 254/25, 340/25

This case involved the calculation of the amount due after a bank loan was unpaid. A key aspect involved how interest should have been calculated, the impact of deposits and the status of the expert report.

Background

An Appellant Bank in suit No 254 of 25 filed suit No 533 of 2001 (Commercial - Abu Dhabi) against the Respondents - the Appellants in Appeal No 340 of 25 - requesting they be obliged to pay 4.312.887.67 AED and legal interest from 01/09/2001 until full payment based on banking facilities which had been granted to the Respondents, and which remained unsettled.

Proceedings

Abu Dhabi Court of First Instance - Decision No 533 of 2001

The Court appointed an expert, and ruled on the 25/11/2002 to oblige the Respondents to pay to the Bank 3.768.316.01 AED and late payment interest of 14% per year on the principal amount of the debt which amounted to 2.085.760.91 AED from 29/10/2001 until full settlement, provided the interest did not exceed the principal amount of the debt.

Abu Dhabi Court of Appeal - Appeal No 573, 601 of 2002