Abu Dhabi: Investor wins Dh197,550 in online auction dispute

Abu Dhabi: An investor who said he entrusted his savings to an online auction venture has won a court ruling ordering the platform and its owner to repay Dh197,550, after the money he invested was not returned when the agreement ended.

The Abu Dhabi Commercial Court of First Instance ruled that the auction platform and its owner must jointly pay the remaining amount owed to the investor, along with 5 per cent annual interest until full payment, in addition to court costs and Dh200 in legal fees.

According to court documents, the investor had entered into an agreement with the company to fund the purchase of products that would be sold through the platform’s online auctions. In return, he was promised profits of 15 per cent on the invested amount.

The investor transferred funds to the personal account of the platform’s owner and also handed over some payments in cash.

After the investment period ended, he asked for the return of his capital and the agreed profit. The defendants, however, did not repay the money, prompting him to file a lawsuit.

The claimant initially sought Dh233,500, along with 9 per cent interest and Dh50,000 in compensation for damages. He submitted the investment agreement, bank transfer records, payment receipts and WhatsApp messages as evidence.

A court-appointed accounting expert later found that the platform operated solely as an online auction marketplace without a physical office and that the relationship between the parties was a commercial investment arrangement in which the claimant financed purchases to be sold through the company’s auctions.

The expert confirmed that the investor had provided Dh217,000 in capital, based on bank statements and payment receipts.

The defendants did not submit audited financial statements or accounting records showing the results of the investment or proving that losses had occurred.

Because no losses were documented, the expert concluded that the full investment remained intact. Based on the agreement’s terms, profits were calculated at 15 per cent, amounting to Dh32,550.

This brought the total due to Dh249,550, though the investor acknowledged receiving Dh52,000 earlier from the defendants. After settling the accounts, the expert determined that Dh197,550 remained outstanding.

In its judgment, the court said it relied on the expert’s findings, noting that the defendants had not produced evidence contradicting the report or proving that the investor’s capital had been returned.

The court also considered WhatsApp messages submitted in the case, which suggested that the platform had generated profits from auction sales, reinforcing the conclusion that no losses had occurred.

The court rejected the investor’s request to require a decisive oath from the platform’s manager, ruling that the contractual relationship existed only between the investor, the platform and its owner.

It ultimately ordered the platform and its owner to pay Dh197,550 with 5 per cent annual interest until settlement, while dismissing the remaining claims.