DCC 285/2007

This case involved whether there was sufficient evidence of the existence of a settlement agreement and the appropriate method for calculating interest on the debt.

Background

Some respondents filed their original proceedings against four Defendants, the Appellants, before the Dubai Court of First Instance in case No. (537/2003) seeking payment of damages of around 2 Million AED.

The Defendants, a sole proprietorship company and its partners, the Respondents allege, had previously taken out a commercial loan which they failed to repay: and after they proceeded to request payment, the Defendants - Appellants, failed to acknowledge their entitlement.

The main point raised by the Appellants during the original proceedings was that the dispute between the Respondents and the Appellants had been properly settled by a settlement agreement. The Respondents, for their part, alleged that the settlement agreement was never honoured and therefore it did not indemnify the Appellants.

Proceedings

The Court of First Instance dismissed the claim: which led the Respondents to appeal the decision to the Dubai Court of Appeal under Case No. (321/2005): which was also dismissed.