UAE court orders investor to repay Dh292,000 and pay Dh10,000 damages

Al Ain: The Al Ain Court for Civil, Commercial, and Administrative Claims has ordered an investor to return Dh292,000 to a man after failing to repay the full amount of a Dh500,000 investment he had received for use in his business, Emarat Al Youm reported.

The court also awarded the plaintiff Dh10,000 in compensation for damages incurred due to the delayed repayment and withholding of funds.

Background of the case

According to court documents, the plaintiff filed a lawsuit demanding Dh440,000, the outstanding balance of the loan, and an additional Dh50,000 in compensation for material and moral damages, along with legal fees and court expenses. He explained that he had transferred Dh500,000 to the defendant to invest in his business, with an agreement to return the principal along with a share of profits.

After several months, the defendant paid the plaintiff Dh148,000, claiming it represented business profits, and returned only Dh60,000 of the original principal. The remainder remained unpaid despite repeated requests.

Defendant’s denial

During hearings, the defendant initially denied the investment agreement and claimed he had not received any funds. When confronted with bank transfer receipts, he admitted to receiving the Dh500,000 but argued that the amount was repayment for a debt allegedly owed to him by the plaintiff—an assertion for which he provided no evidence.

The plaintiff refuted this claim, maintaining that the transfer was purely for investment purposes.

Court proceedings

To resolve the dispute, the court exercised its authority under the Evidence Law and required the plaintiff to take a supplementary oath. The plaintiff swore under oath that the Dh500,000 was transferred as an investment, not as repayment of a debt, and that the defendant had only repaid Dh208,000 in total, leaving Dh292,000 outstanding.

The court confirmed that the defendant had received the funds and failed to return the balance, validating the plaintiff’s claim.

Damages and liability

Regarding the compensation request, the court found that the defendant’s unjustified delay in repayment caused clear harm to the plaintiff, depriving him of access to and control over his funds, while also imposing unnecessary time, effort, and legal costs. The court ruled there was a direct link between the delay and the damages, establishing the defendant’s legal liability.

Court ruling

The court ordered the defendant to:

• Pay the plaintiff Dh292,000, the remaining principal amount.

• Pay Dh10,000 in compensation for financial and emotional distress.

• Bear all court fees and expenses.

All further claims by the plaintiff were dismissed.