DCC 221/2003/1

This case involved whether a guarantee for a bank debt was still in force and whether it covered instalments which had not been paid before the agreement.

Background Facts

A Respondent bank filed suit No. 750 of 2001, before the Dubai Court of First Instance, requesting the Appellants pay 13/131774 AED and 15% interest per annum from the maturity date of 30/6/2001 until full payment, on the basis that the First Defendant received a loan of 121,000 AED with an interest rate of 13% plus 2% in case of a delay in payment of instalments, under the guarantee of the Second Defendant.

The First Defendant did not pay the instalments on their due dates. The Second Defendant claimed that he was discharged from bail under Article 1092 of Federal Law No. 5/1985.

Proceedings:

Court of first instance - Decision 30/2/2002

The Court of First Instance rejected the Defendant's plea and obliged the Defendants to pay the Plaintiff the amount claimed and 13% interest per annum from 30 June 2001 until the payment was completed and to reject the other requests. The Defendants appealed this judgment.

Appeal Court - Appeal No. 470/2002 - Decision dated 22/2/2003