UAE court orders man to repay Dh621,000 loan to bank

The Al Ain Court for Civil, Commercial, and Administrative Claims has ordered a man to pay Dh621,127 to a bank after defaulting on an Islamic Murabaha loan and failing to transfer his salary as pledged in the financing agreement, Emarat Al Youm reported.

According to court documents, the bank filed a lawsuit seeking Dh622,333 in outstanding debt plus legal interest, fees, and expenses. The bank stated that the defendant had obtained Murabaha-based financing but later stopped making payments, resulting in the accumulated balance now owed. The claim was supported by banking documents, account statements, and an expert consultant’s report.

Meanwhile, the defendant submitted a memorandum requesting that the case be dismissed. The court, however, appointed a banking expert to review the financial details. The expert’s report confirmed that the defendant received financing from the bank totalling Dh550,000, with agreed profits of Dh71,346, to be repaid in 48 monthly instalments.

The defendant breached the terms of the Murabaha contract by failing to transfer his salary to the bank and by ceasing payments entirely, having repaid only Dh1,333. After accounting for the agreed profits, insurance fees, and the small amount already paid, the report concluded that the defendant still owed Dh621,127.

The court found that the defendant had not presented any valid defence or evidence to challenge the bank’s claim, confirming his default in paying the instalments. Consequently, the court ruled that all remaining payments were immediately due in accordance with the Murabaha agreement.

It also found that the bank had secured adequate guarantees for the loan and had complied with banking regulations. The court therefore ordered the defendant to pay the bank Dh621,127 with 5 per cent annual interest as compensation for delayed payment, in addition to legal costs, expert fees, and lawyers’ expenses.