Islamic banks may not claim the benefits of delay in payment

The Dubai Court of Cassation ruled that it is not permissible to claim Islamic banks and solidarity companies with the benefits of delay in payment as a result of the debtor’s laxity in fulfilling his obligations.
The text of its ruling stated, “The General Assembly decided to approve the rulings that ended in the inadmissibility of Islamic financial institutions and solidarity companies that practice their work and activities, or part of it in accordance with the provisions of Islamic Sharia, a delay benefit, even by way of compensation, or whatever it is named for any amount of debt or financial commitment that is due to treatment or commercial contracts subject to the provisions of Islamic Sharia, the debtor is delayed in fulfilling it, which is related to the public system The court on its own with itself, with the reference to the rulings.
The ruling was issued last Monday, headed by Judge Abdel -Qader Musa Mohamed, head of the department, and at the request of the President of the Court of Cassation regarding the variation of the rulings on the issue of the entitlement of Islamic financial institutions to the amount of the debt for delay benefits to serve as compensation, the judge, the President of the Court of Cassation, decided to refer this difference to the General Authority of the Court of Cassation to adjudicate it in accordance with Article 20 of Law No. 13 of 2016 regarding the judicial authority in the Emirate of Dubai.