KCC 1139/2020

This case involved whether legal interest or delay interest was payable on an unpaid loan.

Background

A bank filed a case against a debtor before the court. The bank requested the court to order the debtor to pay 35932.12 Dinars and interest of 7%. The bank said that the debtor had received a loan and he had failed to pay the remaining value of the loan. The bank said that the debtor still owed the mentioned amount. The bank said that he had sent a notice to the debtor in order to pay but he had failed to do so.

The court ruled that the debtor should pay the bank 35932.12 Dinars and dismissed the request for interest.

The bank appealed the ruling before the court of appeal. The court dismissed the appealed ruling on the interest and ruled that the debtor should pay the bank interest of 5% for delay.