Unpaid Loan: Abu Dhabi Civil Court Orders Woman to Pay Sister Dh340,000

The Abu Dhabi Family, Civil and Administrative Cases Court has ordered a woman to pay her sister Dh340,000 after ruling that she had failed to repay part of a loan received from her.

 

The court also ordered the defendant to pay Dh20,000 in compensation for the losses suffered by her sister, in addition to court fees and expenses.

 

The plaintiff had filed a case seeking repayment of Dh340,000, representing the outstanding balance of a larger loan, together with legal and late-payment interest at 9% from the date of filing the case. She also sought Dh200,000 in compensation for material and moral damages, with 5% interest from the date the judgment became final until full payment.

 

According to the case documents, the plaintiff had lent her sister Dh540,000 in two transfers. The first amounted to Dh500,000, followed by a further transfer of Dh40,000. The defendant subsequently repaid Dh200,000, leaving Dh340,000 outstanding.

 

The plaintiff told the court that her sister had acknowledged the debt in communications between them and had expressed a willingness to issue a guarantee cheque and repay the outstanding amount in instalments.

 

The defendant had also proposed resolving the dispute by giving up her share of an inheritance in favour of her sister.

 

The court found that the defendant had acknowledged receiving the money and that this was supported by her subsequent conduct, including the issuance of a manager’s cheque as security for the outstanding debt.

 

When questioned about the purpose of the cheque, the defendant said it had been issued to settle the dispute, the court found.

 

The court therefore concluded that the outstanding debt had been established and ordered the defendant to pay Dh340,000 to her sister.

 

It also awarded Dh20,000 in compensation for the loss of benefit from the unpaid amount and the material and moral harm suffered by the plaintiff. The defendant was further ordered to bear all court fees and expenses.