Federal Supreme Court has rejected an appeal by a bank client seeking to block the enforcement of a Dh2.3 million cheque issued in connection with a personal loan, ruling in favor of the bank.
The customer challenged an earlier decision that allowed the cheque to be enforced, arguing that it should not be used to recover the loan amount. He claimed the bank granted the loan without sufficient guarantees despite his limited income, saying his monthly salary at the time did not exceed Dh25,000.
The client cited a 1995 directive regulating personal borrowing, which requires banks to ensure that loans are proportionate to a borrower’s income and backed by adequate guarantees to prevent excessive indebtedness.
A court of first instance appointed an expert to review the case and later rejected the enforcement challenge on its merits. The Court of Appeal upheld the ruling, prompting the customer to elevate the case to the Federal Supreme Court.
In his appeal, the client argued that lower courts failed to properly address his claim that the loan violated the 1995 regulations, rendering their judgments legally flawed.
The Federal Supreme Court, however, ruled that compliance with the directive is a factual matter to be assessed by trial courts, provided their findings are reasonable and supported by evidence. It found no legal error in the decisions of the lower courts.
The high court ultimately upheld the appeal court’s ruling, confirming the enforceability of the cheque and rejecting the client’s request to cancel the enforcement order.
