DCC 86/1995
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai, United Arab Emirates
Taxonomy
Lending & Security, Limitation of Actions, Guarantees
Copyright
LexisNexis
Decision date
13 Nov 1995
Catchwords
Loan – Guarantee – Time Bar – Civil – Commercial
This case involved an unpaid loan which had been guaranteed and whether the guarantee had been called within the necessary time limit. There was no evidence it was a commercial guarantee so it would be under the civil code.
Background
A claim was brought against three defendants ordering them to pay 17,285,758 AED plus interest and legal costs. The claimant stated they had granted a loan to one of the defendants, which had been guaranteed by the other two defendants. The court of first instance ordered the defendants to pay the amount claimed. The defendant debtor appealed and joined the two guarantors. The appeal court dismissed the claim and one of the defendant guarantors appealed by cassation arguing the claimant had failed to call on the guarantee within six months of the date the debt was due, under the Civil Code.
Decision