After the bank withheld the end of service gratuity

Court obliges borrower to repay AED 118.2 thousand remaining indebtedness

Al Ain Court of First Instance ordered a man to pay a bank 118,284 dirhams, the value of the remaining loan and its interest, after he withheld the plaintiff's end-of-service gratuity.

The court pointed out that the borrower is obligated to repay the loan amount, accessories and interest to the bank on time and on the agreed terms.

The employee filed a lawsuit against a bank that demanded the appointment of an expert to discuss the loan contract and calculate what has been paid and the value of the remainder, and oblige the bank to refund him 10,<> dirhams, and oblige him to pay expenses and attorney's fees.

He confirmed that he had obtained a loan while continuing to repay, but the bank withheld the amount of the end-of-service gratuity of 105,<> dirhams, and submitted a document of the lawsuit, a copy of the account statements, while the defendant bank's agent filed a counterclaim demanding that the plaintiff be originally obligated to pay the rest of the loan installments.

The report of the accountant delegated by the court showed the existence of a commercial relationship between the parties, as a result of which the plaintiff obtained credit facilities in the form of loans.

At the request of the plaintiff, the defendant bank granted him an additional loan of 192 thousand and 80 dirhams, provided that the loan is repaid with interest in installments of 48 monthly installments, where the full value of the loan was deposited in the plaintiff's current account and the latter benefited from the amount and paid the value of the previous loan in full with a value of 117 thousand and 538 dirhams, while the rest was withdrawn, and the installments of the last loan were deducted from the plaintiff's salary without objection from him, and the transfer of the plaintiff's salary was stopped. At the bank and the end of service gratuity has been transferred.

After excluding compound interest and calculating simple interest, the total liability of the plaintiff in favor of the defendant bank amounted to 118,234 dirhams.

The bank's lawyer submitted a memorandum of counterclaim in which he demanded that the defendant (the original plaintiff) be obliged to pay the plaintiff in return the value of the total indebtedness of 118,234 dirhams, and the interest from the date of registration of the counterclaim until the date of full payment.

The court ruled on the subject matter of the original lawsuit by rejecting it, and obligated the plaintiff to pay the original expenses of the original lawsuit, and the amount of 300 dirhams for attorney's fees, and the court ruled in the counterclaim to oblige the defendant in return, to pay the plaintiff bank an amount of 118 thousand and 284 dirhams, in addition to interest on the remaining debt at a rate of 9.99% annually from the date of filing the lawsuit until the date of full payment, provided that it does not exceed the principal of the adjudicated debt, and obligated the defendant to pay the expenses of the counterclaim, and the amount of 300 dirhams for fees Advocacy.