DCC 256/2005

This case involved a claim for an unpaid bank loan against the customer and their gurantor. The key issue was which party was required to prove what was owed and the status of the statement of account.

Background Facts

The Plaintiff, a bank, filed proceedings against two Defendants, the First Defendant a bank user who had use the bank facility and obtained a loan, and the Second Defendant who was the guarantor of the loan of the First Defendant.

The Plaintiff alleged that the Defendants had both defaulted on the loan and the guarantee therefore and as such, the Plaintiff made their claim before the Dubai Court of First Instance under roll (2219/2002).

The Court of First Instance, having appointed an expert, found in favour of the Plaintiff for the amount claimed.

However, the Defendants proceeded to appeal the decision to the Court of Appeal alleging that no such loan exists and any liability towards the bank had been settled. The Court of Appeal allowed the Defendants' appeal and ruled in their favour, dismissing the Court of First Instance's ruling, under roll (89/2004).