DCC 134/1994

The original dispute involved unpaid bank facilities. Under the agreement the parties had agreed the Dubai Courts would have jurisdiction although the parties were in Sharjah and the transaction had been there. This case clarified which court had jurisdiction.

Background

A claim was brought against two customers ordering them to pay 252,236.61 for bank facilities that had not been repaid. The parties were residents of Sharjah, but the agreement stated the Dubai courts would have jurisdiction over any disputes. The Court of First Instance held the Dubai courts could not hear the claim and the claimant appealed. The appeal court upheld the judgement and the claimant appealed by cassation arguing the courts had ignored the parties wish to adjudicate in the Dubai courts. It was also stated the UAE Constitution does not prevent parties from choosing the jurisdiction of certain domestic courts.

Decision