Abu Dhabi court ruling: Man ordered to repay Dh811,000 to bank

Abu Dhabi: A man in Abu Dhabi has been ordered to repay more than Dh811,000 to a bank after a court found that he had defaulted on two financing facilities and a credit card, failing to meet his agreed repayment obligations.

The Abu Dhabi Commercial Court (Court of First Instance) ruled that the defendant must pay Dh811,077, representing the outstanding balance on the facilities, and an additional Dh5,000 in compensation for damages incurred by the bank.

The case, according to Emarat Al Youm, was brought by a bank seeking recovery of Dh811,077, along with Dh20,000 in compensation, court costs and legal fees. 

The bank told the court that the defendant had received banking facilities in the form of two sukuk murabaha financings and a credit card, but had failed to repay the instalments and amounts withdrawn, leaving an accumulated debt.

In support of its claim, the bank submitted a salary certificate, copies of identification documents, bank cheques and other records detailing the facilities and outstanding balances.

In its reasoning, the court said it relied on the findings of a court-appointed expert, whose report it found sound and well-founded. 

The expert concluded that the bank had granted the defendant two sukuk murabaha facilities and a secured credit card, and that the defendant’s failure to meet repayment obligations resulted in a total outstanding amount of Dh811,077.

The sum included Dh51,162 for one murabaha facility, Dh571,227 for a second murabaha facility, and Dh188,687 relating to the secured credit card, the court said.

The court noted that the defendant did not attend hearings despite being duly notified, and failed to submit any defence or evidence disputing either the basis or the amount of the bank’s claim.

On the issue of compensation, the court held that the proven default entitled the bank to damages for the harm caused by the breach of contractual obligations. It therefore awarded Dh5,000 in compensation, while rejecting the remainder of the bank’s claims.

The ruling also ordered the defendant to pay court costs, including Dh200 in legal fees.