Civil ruling follows default on written agreement between compatriots
By Staff Reporter
Dubai: A Dubai Civil Court has ordered a borrower from an Eastern European country to repay a $200,000 personal loan to a fellow national after failing to honour the repayment terms agreed in writing.
According to court records, the lender transferred the loan amount to the borrower’s account at a UAE-based bank under a duly signed loan agreement. The contract required full repayment within a specified timeframe, clearly stating that the funds were issued as a personal loan.
When the borrower failed to repay the amount by the agreed deadline, the lender initiated legal action. The court ruled in favour of the claimant, ordering the defendant to repay the full $200,000, or its equivalent of approximately Dh730,000.
In addition to the principal amount, the court awarded statutory interest at a rate of 5 per cent per annum, calculated from the date the case was filed until full settlement. The borrower was also ordered to cover court fees, legal expenses and lawyers’ fees.
Case documents revealed that the lender had complied with all pre-litigation legal requirements by issuing a formal notice demanding repayment. The borrower did not respond, prompting the case to be registered before the competent civil court.
In its judgment, the court confirmed that the loan relationship was clearly established and that all legal conditions for a valid loan contract had been met. It emphasised that a loan contract is considered complete once the funds are delivered, and failure to repay within the agreed period constitutes a breach that gives rise to legal liability.
The court further noted that the submitted documents — particularly the signed loan agreement and bank transfer receipt — were sufficient to prove the borrower’s outstanding financial obligation. It added that statutory interest was awarded as compensation for the delay in settling a confirmed debt.
