Court Orders Woman to Pay Dh150,000 for Failing to Honour Savings Commitment

The Al Ain Civil, Commercial and Administrative Court has ordered a woman to pay Dh150,000 to another woman after failing to transfer the full value of her share in a privately organised rotating savings scheme, locally known as a “jamiyah”.

The court directed the defendant to pay Dh140,000 representing the outstanding balance of the claimant’s subscription, along with Dh10,000 in compensation for material and moral damages.

Court records show that the claimant had paid monthly installments totalling Dh260,000 into the savings scheme managed by the defendant. However, when her turn came to receive the pooled amount, she was given only Dh120,000, leaving Dh140,000 unpaid.

During the proceedings, the defendant admitted owing the outstanding amount and proposed to settle the debt through monthly instalments of Dh5,000. The claimant declined the offer.

In its ruling, the court relied on provisions of the Civil and Commercial Transactions Evidence Law, emphasising that a judicial admission before the court constitutes binding proof. It noted that the defendant’s formal acknowledgement of the debt established the claimant’s right to recover the funds.

Addressing compensation, the court held that any act causing harm obliges the responsible party to make amends. It found that the defendant’s failure to pay had deprived the claimant of the use of her money and caused psychological distress.

Accordingly, the court ordered the defendant to pay a total of Dh150,000, in addition to legal costs.

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