Dubai Civil Court Limits Debt Claim to Dh489,000 After Earlier Payments

An Arab national who borrowed Dh1.5 million from another man was ordered by the Dubai Civil Court to pay only Dh489,000 after the court found that he had already repaid a substantial part of the debt before the original creditor transferred his right to the amount to a third party.

 

The court also ordered the debtor to pay 5% annual legal interest on the Dh489,000 from the date the judgment becomes final, along with court fees, costs and Dh2,000 in lawyer's fees.

 

The case began when the new creditor filed a lawsuit against the debtor, seeking payment of the full Dh1.5 million. The claim was based on an agreement concluded with the original creditor in December 2025, as well as a debt acknowledgment signed by the debtor in which he undertook to repay the amount.

 

The debtor disputed the amount claimed, arguing that it did not reflect the actual outstanding debt. He told the court that he had already paid Dh1.203 million to the original creditor through six bank transfers before the agreement transferring the creditor's rights was concluded.

 

He maintained that the remaining balance was no more than Dh296,250 and asked the court to include the original creditor in the proceedings so that the payments and the actual amount owed could be verified.

 

The court agreed to include the original creditor in the case and appointed an accounting expert to examine the financial relationship between the parties and determine the amount of the original debt.

 

The expert's report established that the debtor had made payments to the original creditor before the agreement transferring the creditor's rights. Although the original creditor argued that the payments related to other transactions, he failed to provide sufficient documentation to substantiate that claim.

 

After reviewing the financial records, the expert determined that the fixed debt owed by the debtor to the original creditor amounted to Dh489,000.

 

The court accepted the expert's findings and ruled that the transfer of the creditor's right applied only to the confirmed outstanding amount of Dh489,000.

 

It therefore rejected the claim for any amount above Dh489,000 and ordered the debtor to pay the new creditor Dhs489,000, together with 5% annual legal interest from the date the judgment becomes final.

 

The court also ordered the debtor to pay the applicable fees and costs and Dh2,000 in lawyer's fees, while rejecting all other claims and requests.