Abu Dhabi Court Rejects Car Ownership Dispute Over Temporary Registration

Abu Dhabi Court Rejects Car Ownership Dispute Over Temporary Registration

Without written proof of ownership or trust, court rules claimant cannot reclaim vehicle or its value

AuthorStaff WriterJan 5, 2026, 7:49 AM

An Abu Dhabi court has dismissed a lawsuit filed by a young man against a friend he accused of unlawfully selling a car that had been temporarily registered in the friend’s name. The ruling highlights the importance of legal documentation in vehicle ownership disputes.

The plaintiff, an Asian national, sought a court order compelling the defendant to either transfer ownership of the vehicle or repay its value of Dh51,509, along with 12 per cent legal interest from the date of filing and Dh20,000 in compensation for alleged material and moral damages.

Dispute over temporary registration

The claimant told the court that he had purchased the vehicle and paid the full amount but could not register it in his own name at the time due to expired residency documents. He claimed he had registered the car in the defendant’s name with the understanding that ownership would later be transferred once his documents were renewed.

After renewing his residency documents, the claimant approached the defendant to transfer ownership, only to discover that the car was no longer in the defendant’s possession. The defendant allegedly failed to provide a clear explanation, leading the claimant to believe the car had been sold and the proceeds retained.

The court noted that the claim relied solely on the claimant’s assertion of payment, without any written agreement, power of attorney, or sales contract to prove ownership or a trust arrangement. Under UAE law, ownership requires an official contract and registration with the relevant authority, not merely proof of payment.

The court also found no written agreement or correspondence indicating that the defendant was obliged to later transfer ownership, nor any evidence suggesting that the registration was symbolic or intended for safekeeping purposes.

In the absence of conclusive legal proof, the court ruled that the case had no sufficient factual or legal basis, dismissed the claim in full, and ordered the claimant to bear all court fees and costs.

 

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