Court Upholds Ruling Against Bank, Orders Dh149,467 Refund to Retiree and Caps Loan Deductions at 30 Per Cent of Pension
Court of Cassation rejects bank’s appeal, confirming lower court orders to slash monthly Ijara instalment, repay excess salary deductions, and cover legal costs.
Staff WriterAug 11, 2025, 9:23 AMThe Abu Dhabi Court of Cassation has upheld a ruling compelling a bank to cap a retiree’s monthly loan instalment at no more than 30 per cent of his pension and to refund Dh149,467 taken unlawfully from his salary.
The decision confirms a Court of Appeal judgment requiring the bank to reduce the man’s monthly payment on an Ijara financing contract to Dh4,270.50 -- 30 per cent of his Dh14,235 pension -- and to reimburse the excess deductions of Dh9,964.80 per month taken over 15 months. The bank was also ordered to cover court fees, pay Dh1,000 in legal costs, and forfeit its security deposit.
Court documents show the retiree had signed a shared-ownership Ijara contract with eventual title transfer four years earlier, agreeing to pay Dh13,897 monthly from his then-salary of Dh23,900. He later discovered the bank had increased the deduction to Dh22,000.
Matters worsened after he retired, reducing his income to Dh14,235, but the bank continued to withdraw the full amount, leaving him without any income despite never missing a payment. He filed a lawsuit, winning at both the Court of First Instance and the Court of Appeal.
The bank’s cassation appeal was rejected on the grounds that the dispute’s value was below the minimum threshold for such cases.
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