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Hera Bank (PJSC) v Herman [2017] DIFC SCT 172

Hera Bank (PJSC) v Herman [2017] DIFC SCT 172

October 16, 2017


Claim No. SCT 172/2017 


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

Ruler of Dubai 









Hearing: 5 September 2017

Judgment: 16 October 2017


UPON the Claim Form being filed on 16 July 2017;

UPON the Defendant acknowledging service of the Claim Form and indicating his intent to defend part of the Claim on 20 July 207;

UPON the parties being called on 25 July 2017 for a Consultation with SCT Officer Lema Hatim and the parties not having reached settlement;

UPON a Hearing having been held before SCT Judge Mariam Deen on 5 September 2017, with the Claimant’s representative, Haldor and the Defendant in attendance;

AND UPON reviewing the documents and evidence submitted in the Court file;

IT IS HEREBY ORDERED THAT the Defendant pay the Claimant AED 70,272.59 in respect of the unpaid loan and credit card.

 Issued by:

Nassir Al Nasser

SCT Judge and Registrar

Date of issue: 16 October 2017

At: 9am 




1.The Claimant is Hera Bank (PJSC), a bank providing financial services including credit cards and personal loans to customers (the “Claimant”).

2. The Defendant is Herman, a Pakistani National (the “Defendant”).


3. The parties’ entered into a written agreement on 27 July 2014, entitled ‘Hera Smart Loan, Credit Card Application Form’ (the “Agreement”). Under the terms of the Agreement, the Claimant received a loan of AED 120,000 on 5 August 2015 (the “loan”), to be repaid in 48 monthly instalments of AED 3,340. The Claimant also received a credit card to the value of AED 6,000 on 6 August 2017 (the “credit card”).

4. The Defendant made regular repayments of the loan until 5 April 2017, after which date he fell into arrears. The remaining amount currently outstanding is AED 60,708.29. The Defendant has also failed to repay the credit card amount. The sum of the amounts owed by the Defendant to the Claimant in relation to the loan and credit card is AED 70,272.59.

5. Following the Defendants’ failure to keep up with his repayments, the Claimant filed a claim to recover the amounts on 16 July 2017 (the “Claim”).

6. Although the Defendant indicated his intention to defend part of the Claim, no defence was submitted.

7. The parties met for a Consultation with SCT Officer Lema Hatim on 25 July 2017 but were unable to reach a settlement.

8. On 5 September 2017, I heard submissions from the Claimant’s representative and the Defendant.


9. In its written submissions and in the Hearing, the Claimant relied on the terms of the Agreement which set out for an AED 120,000 loan to be made to the Defendant by the Claimant, which was to be repaid in 48 equal instalments. The Agreement also provided for a credit card to be provided in favour of the Defendant, which was up to AED 6,000 in value. The Claimant confirmed that it sought repayment of the outstanding amounts of the loan and credit card, which amounted to AED 70,272.59, in addition to 14.99% interest and recovery of costs.

10. In the Hearing, no defence was put forward by the Defendant who agreed that a total of AED 70,272.59 was owed by him to the Claimant. The Defendant explained that he had made regular repayments of the loan until April 2017 and that due to difficulties with his business he was unable to continue. He submitted that he wanted to repay the outstanding amount and had made efforts to contact the Claimant to arrange a new payment plan. The Claimant accepted that the Defendant had been in discussions with the collections department of the Claimant, however, no new payment plan was confirmed. The Defendant asserted that the Claim was filed without his knowledge and that as he was in discussions with the Claimant to try and resolve the dispute directly, he should not be liable to pay any costs of the Claimant.

11. Following the Hearing and an indication from both parties that a new repayment plan could be reached by them, I allowed additional time for the parties to attempt to settle the Claim.

12. On 28 September 2017, I was informed that the parties had failed to reach a settlement and the matter was reserved for my Judgment.


13. This is a very straightforward matter and in the absence of any defence being put forward, I am satisfied that there was a valid and binding Agreement between the parties and that the Claimant is owed a total of AED 70,272.59, being the sum of the outstanding loan and credit card amounts borrowed by the Defendant.

14. The Claimant confirmed that interest had already been factored into the value of the claimed amount, therefore no separate award shall be made in respect of interest.

15. Each party shall bear its own costs.

Issued by:

Nassir Al Nasser

SCT Judge and Registrar

Date of issue: 16 October 2017

At: 9am


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