Matouk Bassiouny has secured a judgment before the Dubai International Financial Centre (DIFC) Court of First Instance, recovering more than AED 11 million for its client in relation to an AED 5 million loan advanced in December 2014.
The ruling established two notable principles for lenders and litigants. The DIFC Court held that a debtor cannot rely on limitation periods to avoid repayment where they have concealed fraudulent conduct, and confirmed that compound interest may be awarded to fully compensate for delays in repayment.
Following a two-day trial, the Court found that the loan had been advanced and rejected the defendant's claims that the funds had never been received, describing the evidence as not credible and the defendant's conduct as fraudulent. Applying section 32 of the English Limitation Act 1980, the Court ruled that the limitation period began only when the claimant discovered, or could reasonably have discovered, the fraud.
The Court also awarded compound interest at 9% per annum from the date repayment became due, distinguishing the DIFC legal framework from onshore UAE law, which generally prohibits compound interest.
The Matouk Bassiouny team was led by Partner Ahmed Tony, with support from Senior Associate Youssef Nassar, Associate Alia Elraey, and Counsel Sajid Suleman of Outer Temple Chambers.
Commenting on the judgment, Ahmed Tony said: "The main challenge in this case was limitation. Our success in this case shows that a limitation defence should not be accepted at face value before the facts behind the delay are properly examined. We are pleased to have supported our client throughout and to have obtained a favourable judgment."