Dubai court rejects jewellery firm’s lawsuit over Dh1 million loan dispute

The Dubai Civil Court has dismissed a lawsuit filed by a jewellery trading company against a former employee, demanding the repayment of Dh1 million it claimed was given to him as an advance. The court rejected the case on the grounds that it had been previously adjudicated, Emarat Al Youm reported.

According to court documents, the jewellery firm sued an Arab man, seeking Dh1 million plus Dh100,000 in compensation for damages allegedly caused by his refusal to return the debt.

The company claimed that the defendant, a former employee, had received Dh1 million from the firm’s funds as a short-term advance, with a written acknowledgement to return the money within a week. However, he failed to repay the amount by the agreed date, prompting the company to report the matter to police.

During questioning, the defendant signed an official police report admitting he had received Dh1million from the company, citing prior financial dealings with its director.

Because the dispute fell under civil rather than criminal jurisdiction, prosecutors closed the case, prompting the company to file a civil claim. When questioned in court, however, the defendant contradicted his earlier statement, saying he had received only Dh100,000, not Dh1 million, and that the sum was to repair one of the director’s cars.

The Court of First Instance dismissed the case, citing the company’s failure to include a copy of the defendant’s original police statement confirming receipt of the amount.

The firm appealed the ruling, but the Court of Appeal also dismissed the case, noting that any amendment to the original judgment depended on the outcome of a related criminal complaint still under review by the Public Prosecution.

After prosecutors again closed the file, reaffirming the dispute’s civil nature, the company filed a fresh civil case, arguing that it now had the right to pursue the matter again.