Dubai Civil Court Orders Man to Repay Dh266,000 in Failed Investment Deal

Dubai Civil Court has ordered a man to repay approximately Dh266,000 to an investor after finding that he had failed to return money entrusted to him for investment in various projects and vehicle purchase deals. The court also awarded the claimant Dh50,000 in compensation for material and moral damages, together with annual interest of 5 per cent until full payment.

 

The case dates back to July 2023, when the defendant allegedly persuaded the plaintiff to invest money in projects promising substantial returns. He later sought additional funds to participate in vehicle purchase transactions, claiming that the money was required to meet administrative expenses and customs duties.

 

Acting on these assurances, the plaintiff transferred money through bank transactions, arranged an additional transfer through a friend and handed over further sums in cash, as requested by the defendant.

 

According to a report prepared by a financial expert appointed by the court, the total amount established as having been transferred or handed over to the defendant was approximately Dh366,000.

 

The amount included bank transfers and cash delivered to the defendant's driver, as supported by WhatsApp correspondence between the parties. The expert's findings also established that the defendant had repaid only Dh100,000, leaving approximately Dh266,000 outstanding.

 

During the proceedings, the defendant disputed the outstanding liability, claiming that he had returned additional amounts in cash. He relied on the testimony of two witnesses to support his defence. However, the court found their statements insufficient to establish that the remaining debt had been settled, particularly in the absence of documentary evidence confirming the alleged repayments.

 

After reviewing the bank records, electronic communications and financial expert's report, the court held that the responsibility to prove that an outstanding debt had been discharged rested with the party asserting that repayment had been made.

 

Since the defendant had failed to produce sufficient evidence showing that the remaining amount had been returned, the court concluded that the plaintiff was entitled to recover the unpaid balance of approximately Dh266,000.

 

The court also held that the failure to return the money had deprived the plaintiff of the opportunity to use his funds, resulting in both financial loss and moral harm. Taking these circumstances into account, it awarded Dh50,000 in compensation.

 

In its final ruling, the court ordered the defendant to pay approximately Dh266,000, together with Dh50,000 in compensation and annual interest at 5 per cent from the date the legal claim was filed until full settlement. The defendant was also directed to bear the court charges, legal expenses and lawyer's fees.