The defendant argued that he was not liable, as there was no documented loan arrangement.
Dubai Court Orders Repayment of Dh2.25 Million in Loan Dispute
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, underscoring how personal trust can sometimes lead to legal disputes.
The Civil Court of First Instance ruled that the defendant must return the funds after it was proven that the money had been transferred to his bank account and that he failed to provide any legal justification for retaining it, according to Emarat Al Youm.
The defendant had denied owing the sum, arguing that there was no written loan agreement, but the court found the evidence sufficient to order repayment.
According to court records, the men shared a strong friendship prior to the defendant seeking financial help from the claimant to sustain his business amid financial difficulties.
Trusting their relationship, the claimant agreed to provide assistance, arranging the funds by withdrawing the money from his wife’s bank account, which he was legally authorised to manage under a power of attorney.
He then transferred the sum to his friend’s account, expecting it to be repaid. However, according to the case, repayment never materialised. The claimant told the court that he initially tried to resolve the matter privately, but after repeated delays and unanswered requests, he was compelled to pursue legal action.
The defendant denied owing the money, arguing that no written loan agreement existed and claiming that the claimant lacked legal standing because the funds had been withdrawn from his wife’s account. The court, however, rejected these arguments.
Judges noted that the power of attorney clearly authorised the claimant to manage the funds and pursue legal claims. Banking records confirmed that the money had been transferred to the defendant, who did not dispute receiving it.
The ruling emphasised that once the transfer was established, it was the defendant’s responsibility to prove a legitimate reason for keeping the funds or that he had repaid them. Having failed to do so, the court concluded that the debt remained outstanding.
In its decision, the court reaffirmed a fundamental legal principle: money received without legal justification must be returned to its rightful owner.
The court ordered the defendant to repay the full Dh2.25 million, along with 5% annual interest from the date the case was filed until full payment is made. He was also instructed to cover court costs and legal expenses.
