Man takes huge loan from bank but doesn't return it, UAE court obliges him to pay Dhs887,777

Abdulrahman Saeed, Staff Reporter

Al Ain Court of First Instance obliged a bank client to pay the bank Dhs887,777, and fined him Dhs500, the lawyer’s fees.

The client reportedly obtained financing for investment certificates and agreed to pay it in monthly installments. He also obtained a credit card with a monthly salary guarantee, but he did not commit to repaying it.

In detail, a bank filed a lawsuit against a client, requesting that he be obligated to pay Dhs887,777, in addition to a delay fine of 9% annually from the actual due date until full payment.

The bank also demanded that the appellee be obligated to pay the lawsuit expenses and lawyer’s fees.

The bank pointed out that the appellee submitted a request for approval to grant him facilities in the form of financing investment certificates in the Islamic Murabaha formula for Dhs684,000 with a total profit of Dhs97,470 and he agreed to pay the amount in monthly installments (Dhs13,025 per month). He also obtained a credit card upon his monthly salary of Dhs25,462 and the total amount due to him amounted to Dhs887,777.

The court explained that the appellant appeared before the case preparation office and acknowledged his debt in the amount claimed, and therefore it obligated him to pay the amount as indicated in the consultant’s report.

The court rejected the bank’s request to pay a delay fine, in accordance with Article 506 of the Civil Transactions Law.