DCC 223/2009/2

This case involved money owed to a bank by a company. Key points included the liability of a partner. The case considered the best approach to confirming a signature which had been denied and if there was valid guarantee wording.

Background

A bank filed the action No 488/2003 against three parties demanding that they jointly pay 748,980,26 AED with 15% annual interest % as of 16/07/2003 until payment. The Plaintiff claimed that they had granted Defendants banking facilities equivalent to the amount which they did not pay.

The Third Defendant was present at Court and filed a rejection of the action for being filed against someone who lacked standing in the matter because the First Defendant was a limited liability company and he was just a partner. He also pleaded that that according the decree issued by his highness the Ruler No 05/01/07/6321 dated 27/02/1995 he be excluded from the guarantee on the basis of Article 1092 of Federal Law No. 5/1985.

Proceedings:

Court of First Instance

The Court of First Instance rejected the requests.

Court of Appeal - Appeal No 362/2004