01
Legal issue
Where a financing company included the contractual interest from the beginning of the agreement and spread it across the instalments, it may not charge the same interest again on the outstanding balance.
02
Published principle
The Arabic judgment published by the Supreme Court is the primary source. The Russian, English and Chinese texts on this page are unofficial Smart Global Capital editorial accounts.
The official source contains the full judgment together with its published headnote and legal rule; the editorial account does not replace the Arabic original.
If a financing company charged interest on the financing it granted from the beginning of the agreement and distributed that interest across the instalments due during the financing term, it may not demand that interest be calculated again on the remaining balance. The reason is that this would give the company the interest twice, which is impermissible.
03
Applicability
The financing company's appeal was dismissed. The claim concerned accumulated interest after the original interest had already been added to the financing amount and allocated over 60 instalments. The full judgment observed that separately agreed and quantified late-payment interest might have been claimed, but the company neither claimed nor specified it. The ruling is therefore not a general prohibition on every default charge; the agreement and current commercial and Central Bank rules must be checked.
04
Related instruments
- Commercial Law, Royal Decree No. 55/1990, Article 12
- The financing agreement and current Central Bank of Oman rules for financing companies
05