DCC 324/2007

This case involved whether a contract was an agency agreement and if so if it had been terminated and the statute of limitations which applied.

Background

A bank supplied the defendant company, as requested with traveller's cheques in accordance with the terms and conditions in an agreement for 25.9.1991 AED and other pledges.

The Defendant refrained from paying the due amounts of $666,870, £13,800 pounds and 2,550 DM equivalent to the amount claimed and without legal justification.

The Plaintiff bank, requested to join the insurance company to the dispute and to oblige them to jointly pay d with the Defendant the amount claimed with the interest.

The insurance company responded that the courts of Dubai lacked jurisdiction over the dispute since the agreement was concluded in India.

The court of first instance validated the claim of the Defendant and rejected the case for lack of jurisdiction, and then the court of appeal validated the appealed judgment.

The bank appealed in cassation in Decision No 123 of 2004 in which the court reversed the appealed judgment and held that the dispute should be referred to the court of first instance again to re-exam the case.