Qatar: Compensation for Damages Resulting from Defaults on Loans
Type
E-journal
Date
31 Mar 2016
Jurisdiction
Qatar
Taxonomy
General Banking & Finance Law
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
A recent decision from Qatar's highest court, the Court of Cassation, may prove to have significant implications for court-awarded compensation to a lender when a borrower defaults on a loan agreement.
Background to the Case
The Claimant (a bank) provided a real estate mortgage to the Defendant for an amount of QAR 7 million (USD 2,000,000) with an interest rate of 8.25% per annum, in addition to other benefits which amounted to QAR 1 million (USD 280,000) in debits against the Defendant's account with the bank.
In 2010, the Claimant filed a civil case with the Court of First Instance in Qatar, seeking payment on the arrears of the principal amount in addition to the interest of 8.25%.
The Case at First Instance
In 2011 the Court of First Instance issued a judgment for the Claimant and awarded the Claimant the full amount of the principal amount but refused to grant him any interest.
Ruling of the Court of Appeal