UAE borrower who never paid a single loan instalment ordered to repay Dh624,643 plus interest

Abu Dhabi: The Abu Dhabi Commercial Court (Primary) ruled that an employee must pay Dh624,643 to a bank, after he failed to pay a personal loan of Dh600,000 and refused to pay the instalments due. The court indicated in its ruling that there was an agreement that allowed the plaintiff bank to demand immediate payment of the full value of the loan in the event of the defendant’s failure to pay.

In detail, a bank filed a lawsuit against a client, demanding that he pay it the sum of Dh624,643, plus the interest applied to the personal loan from the date of filing the lawsuit until full payment, and that the judgment be enforced immediately without guarantee. 

He was obligated to pay the fees, expenses and attorney fees, on the basis of the claim that the defendant obtained banking facilities from it, which is a personal loan, and then failed to pay, and attached copies of a personal loan application, a check for Dh720,000, a copy of the defendant client’s salary certificate from his employer, in addition to an account statement, while the defendant did not appear despite being notified.

For its part, the court explained in the reasoning of its ruling that it is established from the case file that the defendant client obtained a banking facility from the plaintiff bank in the form of a personal loan of Dh600,000, to be paid in instalments over 48 months. This was also confirmed by the expert consultant’s report, the conclusion of which the court is satisfied with. 

The court confirmed that the defendant did not pay any of the agreed instalments, and the two parties to the case agreed that the plaintiff bank has the right to demand immediate payment in the event of the defendant’s failure to pay.

Regarding the claim for interest, the court noted that the defendant client was found to be liable for the full loan amount and accrued interest to the plaintiff bank. This amount was known, and the client’s default on repayment was established, as the documents lacked any evidence of the defendant client settling the debt. This established the plaintiff bank’s entitlement to legal interest as compensation for the delay and loss. 

The court ruled that the defendant must pay the plaintiff the sum of Dh624,643, in addition to the agreed-upon interest, from the date the lawsuit was filed until full payment, not exceeding the principal amount. The defendant was also ordered to pay court costs and Dh200 in attorney’s fees. All other claims were dismissed.