Couple ordered to repay €160,000

The Court of Appeal has confirmed a judgment in terms of which a couple were ordered to repay over €160,000 which they had borrowed.

Gaetano and Mary Abdilla claimed in their writ of summons that they had loaned Joseph and Carmen Gauci Lm70,510 on which interest . When they requested repayment Mr and Mrs Gauci claimed that the sum was not due because the loan agreement was in violation of the Exchange Control Act which was in force at the time.

The First Hall of the Civil Court upheld Mr and Mrs Abdilla's claim and ordered Mr and Mrs Gauci to pay the sum of Lm70,510 with interest from the date of the filing of the writ of summons in 1996. Both parties appealed.

Mr and Mrs Gauci asked the Court of Appeal to revoke the first court's judgment. On their part Mr and Mrs Abdilla requested the Court to confirm the first judgement. They further asked the Court of Appeal to declare that interest was due on the loan with effect from November 1991 when a judicial letter for payment had been served on the Gaucis.

In its judgment the Court of Appeal confirmed the first court's judgment and declared that the first court had properly interpreted the facts of the case. The Court of Appeal however found in favour of Mr and Mrs Abdilla and declared that interest was due as from November 22, 1991. The court also declared that all the expenses of the litigation were to bepaid by Mr and Mrs Gauci.