DCC 254, 259/2007

This case involved a request for damages after a bank's committee had agreed to provide a company with credit facilities but had then refused causing them damage. A key issue was the interest which should be charged.

Background

A bank filed suit No. 461 of 2004 before the Dubai Court of First Instance against an electrical company and two other parties requesting the Court to oblige them to pay 580,627 AED and 12% interest rate from 22-6-2004 until full payment on the basis that due to the request of the Second and Third Respondents and their guarantee, the bank granted credit facilities in the name of the First Respondent but they did not pay the amount due to the bank.