Al Ain Civil Court Orders Man to Repay Dh621,000 Murabaha 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 he defaulted on a Murabaha-based financing agreement and failed to transfer his salary as pledged.

According to case records, the bank had sued the defendant for Dh622,333 in unpaid dues, in addition to legal interest, fees, and expenses. The bank stated that the borrower had received Islamic Murabaha financing but later stopped making payments, resulting in the outstanding balance. The claim was supported by banking records, account statements, and an expert consultant’s findings.

The defendant, in his defence memorandum, sought dismissal of the case. However, the court appointed a banking expert to review the financial details, whose report confirmed that the defendant had received Dh550,000 in financing with agreed profits of Dh71,346, repayable over 48 monthly instalments.

The report found that the borrower had breached the Murabaha contract by ceasing payments and failing to transfer his salary to the bank, repaying only Dh1,333. After adjusting for profits, insurance, and the small payment made, the outstanding amount stood at Dh621,127.

Finding no valid defence or evidence to dispute the bank’s claim, the court held the borrower liable for defaulting on the instalments. It ruled that all remaining payments had become immediately due under the terms of the Murabaha contract.

The court also noted that the bank had provided sufficient guarantees and adhered to regulatory requirements. Accordingly, it ordered the defendant to pay Dh621,127 to the bank, along with 5 per cent annual interest for the delay, and to bear legal costs, expert fees, and lawyers’ expenses.

For any enquiries please fill out this form, or contact info@thelawreporters.com and  Follow  The Law Reporters on WhatsApp Channels