A DUBAI bank has approached the local High Court, seeking an order compelling two of the Arab nation’s alleged fugitives, Muhammad Maqbool Abdul Rauf and Muhammad Ijaz Abdul Raul, to settle their 6 609 051 dirhams (AED) ($1 799 000) bank loan.
BY CHARLES LAITON
The pair allegedly fled their country, United Arab Emirates (UAE) after borrowing the money from Doha Bank, Dubai.
The bank issued the summons against the pair early this month and the respondents have entered their appearance to defend the case in Harare.
According to the bank, on August 3, 2015, and in the UAE, the financial institution advanced a loan facility with a total limit of 12 000 000 AED ($3 267 000) to a company called A Rauf International Limited Liability Company, at the latter’s instance and request.
“The first and second defendants herein are shareholders and directors of the said borrower and have fled the jurisdiction of the courts of the UAE. The facility agreement had the following material, express alternatively implied further alternatively tacit terms,” the bank said.
“The plaintiff (Doha Bank) would advance to the borrower up to 12 million AED
($3 267 000) at the borrowers’ instance and request for the purpose of financing working capital requirements. The facility would be available to the borrower in terms of the facility agreement until March 31, 2016.”
Doha Bank further said it was agreed between the parties that interest would be charged on the facility at the rate of 5,5% per annum and should the business pair fail to make the payment upon demand of any amount due in terms of the facility, then any outstanding money would attract a 2% interest per annum over and above the gross rate.
Sometime in August 2015, the bank said one of the businessmen signed a written irrevocable personal guarantee for the obligations of the firm to the bank.
“The borrower breached and caused default under the facility agreement and failed to effect payment due to the principal amount together with interest and other ancillary charges due to the plaintiff upon demand by the plaintiff,” the bank said.
“In consequence of the borrower and the defendant’s breach of the facility agreement, the plaintiff sued the defendants out of the court of first instance in Dubai in the UAE and on July 31, 2017 the said court passed a judgement in favour of the plaintiff in the sum of 6 077 000 AED ($1 654 463) together with interest at the rate of 9% per annum to be paid by the defendants. To date of this summons the amount due owing and payable to the plaintiffs is the sum of 6 869 486 AED ($1 870 217).
“Despite demand, the borrower and the defendants have refused, neglected or ignored to pay the outstanding debt of
6 609 051 AED ($1 799 314) or any part thereof.”