Man Ordered to Repay Dh255,665 to Bank Over Murabaha Vehicle Finance Default

The Al Ain Civil, Commercial and Administrative Cases Court has ordered a bank customer to pay Dh255,665 to a bank after defaulting on installments linked to a Murabaha vehicle finance agreement.

According to court records, the customer had obtained banking facilities under a Murabaha contract and later failed to meet the agreed repayment obligations, prompting the bank to file a lawsuit seeking recovery of the outstanding amount.

The bank argued that the customer breached the terms of the contract by failing to pay monthly instalments despite repeated demands for settlement. It sought payment of the remaining dues, along with fees, expenses and legal costs.

Court documents showed that the original financing amount stood at Dh340,000, while the agreed profit under the Murabaha arrangement totalled Dh52,530, bringing the total payable amount to Dh392,530 in instalments.

The financing was secured through a mortgage on the vehicle in favour of the bank and an undated cheque worth Dh408,000.

The court noted that the customer had paid only Dh138,125 before stopping repayments. After including agreed late-payment penalties amounting to Dh1,260, the court ordered him to pay the remaining Dh255,665 to the bank.

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