Defendant ordered to return funds with compensation and annual legal interest.
Dubai court orders repayment in Dh3.5m breach of trust case
Dubai: A civil court in Dubai has directed an Arab national to repay Dh3.5 million he misappropriated under a trust receipt, along with Dh200,000 in compensation, following a final criminal conviction for breach of trust.
Court records show the case began when the claimant filed a civil lawsuit seeking the return of funds that had been received under a trust receipt, which explicitly stated the money was entrusted to the defendant and had to be returned upon request.
The document further stipulated that failing to return the amount would constitute a breach of trust and misappropriation of the funds, Emarat Al Youm reported.
The claimant stated that the defendant repeatedly refused to return the money, prompting him to file a police complaint. The case was then referred to the public prosecution and subsequently to the criminal court, which convicted the defendant of breach of trust.
The criminal court sentenced him to three months in prison, imposed a fine equivalent to the misappropriated amount, and ordered his deportation, while referring the civil claim to the competent civil court for resolution.
The defendant appealed the criminal ruling, but the appellate court upheld the judgment. The ruling later became final after no challenge was filed before the Court of Cassation.
In its civil ruling, the court noted that final criminal judgments carry binding authority in civil proceedings regarding the occurrence of the crime, its legal classification, and the attribution of responsibility, in accordance with the evidence and criminal procedures laws.
The court concluded that the defendant had wrongfully appropriated the Dh3.5 million entrusted to him, causing financial harm to the claimant. It ruled that the claimant suffered material damage, including the loss of the funds and the inability to invest them for nearly two years.
Citing provisions of the UAE Civil Transactions Law, the court ordered the defendant to repay the full Dh3.5 million and pay Dh200,000 in compensation for financial losses caused by the delayed return of the funds.
The court also ruled that legal interest of 5 per cent per year would apply from the date the judgment becomes final until full payment is made. Additionally, the defendant was ordered to cover all court fees and legal costs.
