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Claim No. SCT 371/2022

THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS

In the name of His Highness Sheikh Mohammed Bin Rashid Al Maktoum,
Ruler of Dubai

IN THE SMALL CLAIMS TRIBUNAL
BEFORE H.E. JUSTICE MAHA AL MHEIRI

BETWEEN

LUMRIT

Claimant

and

LITIF

Defendant

JUDGMENT OF H.E. JUSTICE MAHA AL MHEIRI

UPON this Claim being filed on 18 October 2022

AND UPON a hearing having been listed before H.E. Justice Maha Al Mheiri on 16 November 2022, with the Claimant’s representative and the Defendant in attendance

AND UPON reading the submissions and evidence filed and recorded on the Court file

IT IS HEREBY ORDERED THAT:

1. The Defendant shall pay the Claimant the amount of AED 224,170.27.

2. The Defendant shall pay the Claimant the DIFC Courts’ filing fee in the amount of AED 11,216.14.

3. The Defendant shall pay interest to the Claimant on the judgment sum from the date of this judgment, until the date of full payment, at the rate of 9% annually.

Issued by:
Delvin Sumo
SCT Judge
Date of issue: 25 November 2022
At: 9am

THE REASONS

Parties

1. The Claimant is Lumrit, a bank providing financial products and services including personal loans to customers (the “Claimant”).

2. The Defendant is Litif, a customer of the Claimant Bank (the “Defendant”).

Background

3. The parties entered into a written agreement on 31 May 2015, entitled ‘Lumrit Smart Loan and Credit card Application Form’ (the “Agreement”). Pursuant to the terms of the Agreement, the Claimant received a loan of AED 500,000 (the “Loan”), which was to be repaid in 48 monthly instalments. The Loan has been in arrears since 9 January 2019, with a total outstanding amount of AED 224,170.27.

4. On 18 October 2022, the Claimant filed a Claim with the DIFC Courts’ Small Claims Tribunal (the “SCT”) seeking the recovery of sums allegedly owed to the Claimant by the Defendant. The amounts sought included the Loan arrears in the sum of AED 224,170.27, court fees and post judgment interest.

5. On 16 November 2022, at a hearing before me, I heard submissions from the Claimant’s representative and the Defendant appearing in person without representation.

Discussion

6. In its written submissions and at the hearing, the Claimant relied on the terms of the Agreement, pursuant to which the Claimant approved the sale of a Loan to the Defendant in the sum of AED 500,000. The Loan was to be repaid in 48 equal instalments. The Claimant confirmed that it sought repayment of the Loan arrears. At the time of the hearing, the arrears amounted to AED 224,170.27. In addition, the Claimant sought to recover its costs.

7. At the hearing, the Defendant did not object to the amounts claimed by the Claimant. The Defendant submitted that he was facing financial difficulties as a result of his employment situation and, as a consequence it had prevented him from paying the amounts owed to the Claimant.

Finding

8. This is a straightforward matter. I am satisfied that there was a valid and binding Agreement between the parties and that the Claimant is owed a total of AED 224,170.27. This being the total Loan arrears accrued by the Defendant.

9. The Claimant confirmed that the sum claimed was inclusive of interest.

10. Article 118(2) of the DIFC Contract Law provides that the “rate of interest shall be the average bank short-term lending rate to prime borrowers prevailing for the currency of payment at the place for payment.” Pursuant to Practice Direction 4 of 2017, which sets out Interest on Judgments, the Claimant is granted interest to accrue on the judgment amount at the rate of 9% from the date of this Judgment.

11. In accordance with the aforementioned paragraphs, the Claimant’s claims against the Defendant are accepted. It is hereby ordered that the Defendant shall pay the Claimant the amount of AED 224,170.27.

12. In addition, the Defendant shall pay the Claimant the DIFC Courts’ fee, applicable to the filing of this Claim, in the sum of AED 11,216.14.