DCC 322/2003

This case involved a debt which the first defendant had agreed to pay in instalments but then had stopped paying. A key issue was the impact of an agreement by them to transfer their right to rent a property in return for no longer having to pay the instalments. The court also considered the sufficiency of the evidence.

Background

As a result of commercial transactions between the first respondent (plaintiff in the first instance) and the first defendant company which was involved in the sale and purchase of some quantities of gold and left a pending amount of 45,795,741 AED.

On 6-10-99 this debt was settled and the first defendant company pledged to pay it on with monthly instalments of 150,000 AED starting from 20-10-99 and ending on 20-11-2001 and then on 10-10-1999 the second defendant signed aguarantee bond in which he undertook to pay the value of return cheques within 15 days from the date of the request