Abu Dhabi Commercial Court ruling upholds bank accountings in loan dispute
An Abu Dhabi Commercial Court ruling has dismissed a man’s claim against a bank seeking AED 328,729 after he said he had fully repaid a personal loan exceeding AED 2.6 million. The First Instance commercial court in Abu Dhabi reviewed expert accountancy evidence and court filings before rejecting the plaintiff’s demands, court records show.
The ruling, issued earlier this year, centers on a personal loan of AED 2,625,000 and subsequent cash payments and instalments. The plaintiff alleged overcharging and sought compensation and delayed‑payment interest, while the bank denied any contractual breach and submitted account statements in its defence.
Case details and plaintiff’s claims
The plaintiff filed a lawsuit asking the court to order the bank to pay AED 328,729 and an additional AED 100,000 in compensation for alleged contractual violations. He also requested 12% annual default interest from the date the case was lodged and the appointment of a banking expert on a precautionary basis.
According to the claim, the borrower had a personal loan of AED 2,625,000, committed to scheduled instalments and made cash payments totalling AED 1,700,000. He later received statements indicating a remaining balance of about AED 739,000 despite his assertion that the loan had been fully settled.
Expert report and accounting findings
The court appointed an accounting expert to examine the loan statement and payment history. The forensic accounting report concluded that the original principal was AED 2,625,000, with a fixed interest rate of 6.25% annually for the first two years, then a variable rate with a floor of 5.75% for the remaining term.
According to the report, the loan schedule comprised 240 monthly instalments with the first instalment due in November 2018 and the stated purpose of the facility being debt repayment. The expert calculated total withdrawals of AED 2,625,000 and total simple interest of AED 869,966. The report further recorded total payments through March 2026 of AED 2,785,449, leaving an outstanding balance of AED 708,517.
The expert found no evidence of additional fees or charges beyond the contractual terms. In particular, the forensic accounting report did not identify any miscalculations or unlawful assessments by the defendant bank, and it found no amounts due from the bank to the plaintiff.
Court reasoning and outcome
The court stated it relied on the expert’s report, finding the analysis sufficiently thorough and the methods sound. Therefore, it accepted the expert’s conclusions as the factual basis for its judgment. The court rejected the plaintiff’s objections to the report, noting the expert had given parties an opportunity to comment on a preliminary draft and had addressed those submissions.
On that basis, the court dismissed the claim in full and ordered the plaintiff to bear court costs and expenses. The judgment also imposed AED 200 in legal fees for the opposing counsel, consistent with the fee schedule applied by the court.
Implications for bank loan disputes and consumer claims
This Abu Dhabi Commercial Court ruling underscores the evidentiary weight that an expert accounting report can carry in bank loan disputes. Parties contesting account statements should expect detailed forensic analysis of payment flows, interest calculations and contractual terms to play a decisive role, legal practitioners said in similar matters.
Furthermore, the decision highlights the need for borrowers to retain comprehensive documentation of payments and communications with lenders. In contrast, banks can defend against overpayment claims by producing reconciled account statements and supporting records that corroborate interest accrual and outstanding balances.
Background on documentary proof and procedural steps
In UAE commercial litigation, courts routinely appoint financial experts to investigate technical accounting issues that are beyond the court’s lay expertise. The expert’s mandate typically includes reviewing account statements, recalculating interest using contractual formulas and addressing any disputed entries.
Therefore, in bank loan disputes, parties should prepare to engage with forensic accounting procedures and to file timely objections to preliminary expert findings. Additionally, both borrowers and lenders commonly present bank statements, receipts and contractual documents to support their positions in court.
What happens next and what to watch
Following this Abu Dhabi Commercial Court ruling, the plaintiff may explore appellate remedies under the applicable procedural rules, though the judgment stands unless reversed on appeal. Observers should watch for any appeal filings or enforcement proceedings, which would provide further clarity on how appellate courts treat expert accounting evidence in similar disputes.
Businesses and consumers involved in bank loan disputes should monitor developments in local jurisprudence for guidance on evidentiary standards and remedies. Meanwhile, lenders and borrowers are advised to maintain meticulous records to reduce the risk of costly litigation and to facilitate quicker resolution where disputes arise.
