Session of Wednesday, December 25, 2024
Headed by Judge Shihab Abdulrahman Al Hammadi, ‘Head of the Department’
With the membership of Judges Al-Hassan Ibn Al-Arabi Faidi and Dawood Ibrahim Abul Shawarib
(1-5) Commercial Transactions ‘Commercial Obligations’ Accrual interest on a commercial loan’ Contract ‘Enforceability of the interest rate stipulated in the loan contract’
1. Charging interest on a commercial loan. Right of the creditor. Basis for it.
2. Calculation of delayed interest shall be based on the agreed rate until full repayment. The basis for that.
3. Payment of loan interest is due at the end of the year if the term of the loan is one year or more or on the day the debt is due if the term is less than one year unless otherwise required by commercial or banking practice.
4. A contract is the law of the contracting parties and must be executed as per its provisions. If a loan contract specifies an interest rate, it must be applied to the principal debt until full repayment.
5. The appealed decision rejected the appellant's request to calculate the interest rate despite the fac...