01
Legal issue
A mortgage secures repayment; after failure to pay the adjudged amount, a financing company may use the legal procedures available to realise the mortgaged vehicle.
02
Published principle
The Arabic text published by the Supreme Court is the primary source. The English translation was published by the Technical Bureau; Russian and Chinese are unofficial Smart Global Capital editorial translations.
This is a published legal principle—an extract selected by the Supreme Court of Oman Technical Bureau—not the full text of the judgment.
A mortgage shall serve as collateral for repayment and may only be activated in the event of failure to repay the adjudged amount. Financing companies shall have the right to take all available legal procedures to protect their rights. Therefore, there is no legal barrier preventing the creditor from being authorized to sell the mortgaged vehicle for their benefit in case of failure to repay.
03
Applicability
The principle concerns realisation of a mortgaged vehicle after non-payment of an adjudged amount; it is not a universal right of extra-judicial sale. The agreement, enforcement procedure, current Central Bank of Oman rules and consumer-protection requirements must be checked separately.
04
Related instruments
- Civil and Commercial Procedures Law
- Central Bank of Oman rules for financing companies
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