Man files case against friend in Dubai over unpaid Dh2.25m loan
The defendant denied owing any money and argued there was no written loan agreement
Dubai: A Dubai court has ordered a man to repay Dh2.25 million to a former friend who lent him the money during a financial crisis, in a case that highlights how personal trust can sometimes end in legal disputes.
The Civil Court of First Instance ruled that the defendant must return the money after it was proven that the sum had been transferred to his bank account and that he failed to provide any legal reason for keeping it, Emarat Al Youm reported.
Stay updated: Get the latest faster by downloading the Gulf News app now - it's completely free. Click here for Apple or here for Android. You can also find it on the Huawei AppGallery.
Court documents showed that the two men had shared a close friendship before the defendant approached the claimant asking for financial help to support his business during a period of financial difficulty.
Trusting their relationship, the claimant agreed to help and arranged the funds by withdrawing the amount from his wife’s bank account, which he was legally authorised to manage through an official power of attorney.
He then transferred the money to his friend’s account, expecting it to be repaid. However, according to the case, repayment never came. The claimant told the court he initially tried to resolve the matter privately, but after repeated delays and unanswered requests, he was forced to take legal action.
The defendant denied owing any money and argued there was no written loan agreement. He also claimed the claimant had no legal standing to file the case because the funds came from his wife’s account. The court, however, found these arguments unconvincing.
Judges said the power of attorney clearly gave the claimant the right to manage the funds and pursue legal claims. They also stressed that banking records clearly showed the money had been transferred to the defendant, who did not dispute receiving it.
The ruling noted that once the transfer was established, it became the defendant’s responsibility to prove he had a legitimate reason to keep the money or that he had repaid it. As he failed to provide such evidence, the court concluded the debt remained outstanding.
In its decision, the court reaffirmed a basic legal principle: money received without legal justification must be returned to its rightful owner.
The court ordered the defendant to repay the full amount, along with 5 per cent annual interest from the date the case was filed until payment is completed. He was also ordered to pay court costs and legal expenses.
