Deyaar Development P.J.S.C. v Taaleem P.J.S.C. & National Bonds Corporation P.J.S.C. [2015] DIFC CA 010 (18 August 2016)

Deyaar Development P.J.S.C. v Taaleem P.J.S.C. & National Bonds Corporation P.J.S.C. [2015] DIFC CA 010 (18 August 2016)

NBC had given sufficient notice of the recurring profit issue in its pleadings and conduct; the parties' communications and actions established a recurring profit obligation at 5.5% per annum post-31 August 2008; Sharia Standards were incorporated but rendered academic due to the Concession made by Deyaar's former counsel, which was not withdrawn; appeal dismissed.

Citation
[2015] DIFC CA 010
Parties
Appellant: Deyaar Development PJSC; First Respondent: Taaleem PJSC; Second Respondent: National Bonds Corporation PJSC
Jurisdiction
United Arab Emirates
Judgment Date
18 August 2016
Procedural Posture
Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Murabaha Agreement, Novation, Implied Terms, Sharia Standards, Interest and Profit Charges, Pleading and Procedural Fairness
Contract Law Islamic Finance Commercial Law Murabaha Agreement Novation Implied Terms Sharia Standards Interest and Profit Charges +1 more

Case Brief

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Parties

Deyaar Development PJSC

Appellant

Taaleem PJSC

First Respondent

National Bonds Corporation PJSC

Second Respondent

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether Deyaar was liable for recurring Murabaha profit charges at 5.5% per annum post-31 August 2008
  2. 2 Whether the issue of recurring profit charges was properly pleaded and argued
  3. 3 Whether Sharia Standards were incorporated into the Murabaha Agreement and precluded recurring profit charges

Ratio Decidendi

NBC had given sufficient notice of the recurring profit issue in its pleadings and conduct; the parties' communications and actions established a recurring profit obligation at 5.5% per annum post-31 August 2008; Sharia Standards were incorporated but rendered academic due to the Concession made by Deyaar's former counsel, which was not withdrawn; appeal dismissed.

Court Disposition

Appeal dismissed

Orders

  • Appellant’s Appeal is dismissed.
  • NBC's applications are not considered as they are contingent on the appeal's success.