Woman seeks Dh340,000 from sister in unpaid loan dispute

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Claimant says sister repaid just Dh200,000 of Dh540,000 loan.

Abu Dhabi: An Abu Dhabi court has ordered a woman to repay her sister Dh340,000 after ruling that the amount was part of a family loan that had not been fully settled.

The Abu Dhabi Family, Civil and Administrative Claims Court also ordered the defendant to pay Dh20,000 in compensation for the loss of use of the money and the material and moral harm arising from the dispute, according to Al Khaleej.

The claimant told the court that her sister had requested a loan of Dh540,000, which she transferred in two instalments — Dh500,000 followed by Dh40,000.

According to the case documents, the defendant later repaid Dh200,000, leaving Dh340,000 outstanding.

The claimant said her sister subsequently acknowledged the remaining debt in messages exchanged between them and expressed her willingness to provide a security cheque and repay the outstanding amount in instalments.

According to the case documents, the defendant had also sought to settle the dispute by offering to relinquish her share of an inheritance in favour of her sister.

The court found that the defendant had acknowledged receiving the money and noted that she had issued a manager’s cheque as security for the debt.

When asked why the cheque had been issued, the defendant did not provide an explanation for the underlying transaction, saying only that it had been intended to resolve the dispute, the court said.

The claimant had sought repayment of the Dh340,000 outstanding balance, 9 per cent legal interest from the date the case was filed, and Dh200,000 in compensation for material and moral damages, in addition to further interest and court costs.

The court ultimately ordered the defendant to repay the outstanding Dh340,000 and awarded the claimant Dh20,000 in compensation.

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