Dubai court orders borrower to repay Dh730,000 loan with interest

Dubai: Dubai Civil Court has ordered a borrower from an Eastern European country to repay a $200,000 loan to a compatriot after failing to meet the agreed repayment deadline.

Court records show the lender advanced the amount under a written and duly signed loan agreement, which required full repayment within a specified period. The loan was transferred to the borrower’s bank account at a UAE-based bank, with the transaction clearly stating that the funds were provided as a personal loan.

After the borrower defaulted, the lender filed a legal case. The court ruled in favour of the claimant, ordering the defendant to repay $200,000, or its equivalent in UAE dirhams — about Dh730,000. The judgment also awarded statutory interest at 5 per cent per year, calculated from the date the case was filed until full payment, along with court fees, expenses and legal costs, including lawyers’ fees.

The case file showed that the lender had taken the required legal steps before litigation by issuing a formal notice demanding repayment. The borrower failed to respond, leading to the case being registered before the competent civil court.

In its ruling, the court said the loan relationship was clearly established and that all legal requirements of a valid loan contract had been met. It stressed that a loan contract is completed once the funds are delivered, and failure to repay on time constitutes a breach that gives rise to legal liability.

The court added that the documents submitted — particularly the loan agreement and bank transfer receipt — were sufficient to prove the borrower’s outstanding financial obligation. It noted that statutory interest is awarded as compensation for delay in settling a confirmed debt.