Ajman Court Rejects Woman’s Dh10Million Property Ownership Lawsuit

The Federal Court of First Instance in Ajman has dismissed a woman’s claim seeking to reverse the transfer of a property registered in her name and recover its estimated Dh10 million value, ruling that she was only the nominal owner and had no actual financial interest in the asset.

The court rejected her request to cancel the transfer and restore the property to her name, as well as her alternative claim for Dh10 million in compensation, along with 12 per cent legal interest, court costs and legal expenses. It ordered her to bear the litigation costs and pay Dh1,000 towards the defendant’s legal fees.

According to court records, the woman claimed that the property was legally registered in her name and that she had granted the defendant a general power of attorney to manage her affairs. She alleged that he had abused that authority by transferring ownership of the property to himself without her knowledge or approval.

The defendant denied the allegations, arguing that the woman was not the true owner of the property and that the registration in her name was part of a nominee arrangement. He told the court that the property had been purchased and financed by a group of partners, including the woman’s husband, and that the transfer was carried out to return ownership to one of the legitimate stakeholders.

To support his defence, the defendant submitted a partnership agreement identifying the actual contributors and owners of the property. He also relied on the outcome of an earlier criminal case related to allegations of embezzlement and unlawful appropriation, in which he was acquitted and the related civil claim was dismissed.

Court documents showed that during the criminal proceedings, the woman acknowledged that her husband had arranged for the property to be registered in her name and that she had not contributed any personal funds towards its purchase.

In its judgment, the court noted that final criminal judgments are binding on civil courts regarding facts conclusively established in both proceedings. It found that the criminal court had already examined the property transfer and allegations concerning misuse of the power of attorney and had concluded that there was no criminal wrongdoing or unlawful conduct.

The court also found that the transfer had taken place with the consent of the property’s actual owners and that there was no evidence of fraud or deception.

Rejecting the woman’s argument that the transfer violated legal restrictions preventing an agent from purchasing property entrusted to them for sale, the court ruled that such protections apply only to genuine owners. Since the woman had no beneficial ownership interest, the court found that she could not rely on those provisions.

After reviewing the partnership agreement, the woman’s own statements and evidence from other partners, the court concluded that she was the registered owner only on paper and had no financial stake in the property. It found that the defendant was among the actual owners and that the transfer merely restored ownership to the rightful party.

The court further ruled that the woman did not have the necessary legal standing to pursue the claim, as cancelling the transfer would not restore any legitimate right but would instead grant her ownership of a property in which she had no actual interest.

Regarding her husband’s position as one of the partners, the court said any dispute over his rights must be addressed through partnership-related legal claims, including accounting between partners, enforcement of partnership rights or dissolution of the partnership.

Such disputes, the court held, did not give the woman — who was not a party to the partnership agreement and had no beneficial ownership interest — the right to challenge the transfer or seek restoration of the property.

Finding that the lawsuit lacked a legal basis, the court dismissed both her primary and alternative claims and ordered her to pay the court costs and legal fees.

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