Abu Dhabi Court Upholds Ruling Against Woman in Dh812,500 Loan Default Case

The Abu Dhabi Court of Cassation has upheld a ruling requiring a woman to pay Dh812,500 in overdue villa loan installments, along with Dh20,000 in compensation and 5 per cent annual interest from the date of the lawsuit until full settlement.

 

In 2023, the respondent (creditor) filed a lawsuit claiming that the appellant (debtor) had failed to make monthly payments of Dh32,500 on a residential villa purchased through bank financing. The respondent sought Dh920,000 in unpaid installments and Dh500,000 in additional compensation.

 

The court of first instance ruled that the appellant owed Dh715,000 and Dh10,000 in compensation. Both parties appealed. The Court of Appeal increased the installment amount to Dh812,500, raised the compensation to Dh20,000, and imposed 5 per cent annual interest. The appellant then appealed to the Court of Cassation.

 

In her appeal, the appellant argued that the judges in the lower courts were not authorised to hear the case, as they had previously ruled on a similar dispute between the same parties.

 

She claimed that the installments and compensation were incorrectly calculated, asserting that she had already paid most of the debt and that late interest was unwarranted. She also said the court disregarded her request to appoint another expert to assess her defence.

 

The Court of Cassation rejected all arguments, ruling that the earlier dispute had already been settled and that the principle of res judicata (final judgment) applied.

 

It said the expert report and supporting evidence clearly proved the appellant had missed 22 installments and owed the respondent for an additional three months.

 

The court held that compensation for delayed payments was justified, as the respondent had been deprived of using the funds and suffered financial and personal hardship.

 

It also confirmed that appointing another expert was unnecessary since the existing report and evidence were adequate.

 

The final ruling requires the debtor to pay Dh812,500 in arrears, Dh20,000 in compensation, and 5 per cent annual interest until full repayment.

 

 

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