Dubai Court orders man to pay Dh239,000 to ex-partner over unpaid business loans

Court orders man to repay ex-partner loans, awards interest and damages in dispute

Last updated:
Huda Ata, Special to Gulf News
2 MIN READ
Dubai court mandates Dh239,000 repayment in business loan dispute
Dubai court mandates Dh239,000 repayment in business loan dispute

Dubai: A civil court in Dubai has ruled that a man must pay Dh239,000 plus legal interest and damages to his former partner after he failed to honour his promise to repay loans she took out to fund an alleged business venture.

The dispute came before the Dubai Civil Court of First Instance after the woman claimed that her friend had exploited their personal relationship to persuade her to take out two bank loans on the pretext of investing in a company engaged in the tobacco and smoking supplies trade.

Once the loans were secured, she said, her former partner refused to meet his agreed monthly repayment obligations and later denied receiving any funds, Al Khaleej newspaper reported.

Court documents show that the woman initially took a personal loan of Dh120,000, transferring Dh100,000 to the company account linked to the defendant and handing him the remainder in cash, on his assurance that monthly instalments would be paid from the profits of the purported venture.

When the defendant failed to meet his commitments, she obtained a second loan of Dh174,000 to cover the first, and transferred about Dh73,000 of the balance to the same company account, again on his promise to settle the amounts.

After attempts at an amicable resolution faltered and the defendant continued to refuse repayment, the claimant instructed an independent expert to prepare a report.

The consultant found that the total unpaid amount stood at Dh239,000. The claimant presented evidence to the court, including bank transfer records and screenshots of WhatsApp messages showing an explicit agreement that the defendant would pay monthly instalments of Dh5,211, of which he had only made two.

During the proceedings, the defendant denied that any agreement existed or that he owed any money, and asked the court to dismiss the case.

The claimant maintained her demand for repayment, supported by electronic evidence of transfers and communications.

The court also appointed a neutral accounting expert, whose report corroborated the claimant’s account based on loan records, transfers and electronic correspondence.

In its judgment, the court ordered the defendant to pay the claimant Dh239,000, with legal interest at five per cent from the date the judgment becomes final until full settlement, as well as Dh10,000 in compensation for material and moral damages, together with court fees and associated costs.

Huda AtaSpecial to Gulf News
Huda Ata is an independent writer based in the UAE.

Sign up for the Daily Briefing

Get the latest news and updates straight to your inbox

Up Next