Dh1.5 million loan dispute in Dubai: Borrower refuses to repay friend

The Dubai Civil Court has ordered an Arab man to repay Dh1.5 million to another individual after ruling that the sum was taken as a loan and remained unpaid, despite a signed acknowledgment of debt.

The court found that the defendant had received the amount as an advance from the claimant and had formally committed to repaying it, but failed to do so within the agreed timeframe.

According to Emarat Al Youm, the claimant filed the lawsuit seeking recovery of Dh1.5 million, along with legal interest, court fees, and legal costs. He told the court that the defendant had signed a written acknowledgment confirming the debt and undertaking to repay it upon request.

Despite repeated amicable attempts to recover the funds, the claimant said the defendant refused to settle the amount without legal justification.

The defendant, represented by legal counsel, disputed the claim and requested dismissal, arguing that the alleged debt lacked legal basis and that no financial obligation existed between the two parties. He also sought the appointment of a court expert to examine the claim.

In its judgment, the court reiterated the legal principle that a creditor must prove the existence of an obligation, while the debtor bears the burden of proving its discharge.

The court ruled that the claimant had satisfied this requirement by submitting a written acknowledgment of debt signed by the defendant and witnessed by two individuals. The defendant neither denied the authenticity of the document nor legally challenged its validity.

Based on this evidence, the court concluded that the debt was established and enforceable, ordering the defendant to repay the full Dh1.5 million. Legal interest of five per cent will apply from the date the judgment becomes final until full payment is made, in addition to court costs.