Court Orders Businessman to Repay Dh27M, Rejects Money-Laundering Defence
Civil court finds debt collection firm liable after owner withheld trader’s funds, ruling expert evidence and contracts override unproven claims of suspicious activity.
Staff WriterOct 3, 2025, 6:53 AMThe Dubai Civil Court has ordered the owner of a debt collection company to repay Dh27,057,000 to a lubricant and oil trader, dismissing the businessman’s defence that the funds were linked to money laundering.
The dispute arose when the trader hired the Asian businessman and his team to collect payments from clients and settle supplier debts on his behalf, due to his lack of a local corporate presence. The arrangement was coordinated through a WhatsApp group, where instructions, receipts, and settlement records were exchanged.
Initially, the company processed payments successfully. However, it later withheld the Dh27 million. When the trader demanded repayment last year, the company stopped responding and barred him from its offices. Authorities confirmed the owner had left the UAE for Germany, while staff promised—but failed—to return the money.
Legal proceedings followed, with a court-appointed expert confirming the contractual relationship and the outstanding payments. The defendant submitted a memorandum denying liability, questioning the legitimacy of the funds, and requesting IT experts to review WhatsApp messages. He also sought to involve prosecutors over alleged money laundering.
The court rejected these claims, noting the expert’s findings were sufficient and that no evidence absolved the defendant of responsibility. Citing the principle that “no one may take another’s property without lawful cause,” the court ordered full repayment with legal interest.
UAE Law Context: UAE Civil Transactions Law (Federal Law No. 5 of 1985) protects contractual and property rights, prohibiting anyone from taking another person’s property without lawful cause. While Federal Decree Law No. 20 of 2018 criminalises money laundering, civil courts require proof of illegality to excuse non-payment. Allegations alone are insufficient. In such disputes, court-appointed expert evidence -- including digital records like WhatsApp messages -- plays a decisive role in establishing contractual obligations and outstanding dues.
For any enquiries please fill out this form, or contact info@thelawreporters.com and Follow The Law Reporters on WhatsApp Channels