DCC 257, 282/2003
Background:
The liquidators of Bank branches in the UAE (under liquidation) filed the action No 580/2001 against the Defendants requesting a decision ordering them jointly to pay 1,866,295/11 AED and interest of 12% as of the maturity date until payment and on the basis that the institution, the First Defendant, was an individual institution owned by the Second Defendant and managed by the Third and Fourth Defendants. The institution got from the bank before their liquidation, based on the current account of the institution a loan guaranteed by the Third and Fourth Defendants and the current account's credit on the date it was closed on 03/03/1996 reached the demanded amount.
The Third and Fourth Defendants claimed that the action should not be heard for lapse of time according to Article 95 of Federal Law No. 18/1993 and that they exited the guarantee according to Article 1092 of Federal Law No. 5/1985.
Proceedings: