Dubai Court Orders Man to Repay Dh2.25 Million Loan to Former Friend

A Dubai court has ordered a man to repay Dh2.25 million to a former friend who lent him the money during a financial crisis, in a case that highlights how personal trust can sometimes lead to legal disputes.

The Civil Court of First Instance ruled that the defendant must return the money after it was proven that the sum had been transferred to his bank account and that he failed to provide any legal justification for retaining it.

Court documents showed that the two men had shared a close friendship before the defendant approached the claimant seeking financial help to support his business during a period of difficulty.

Trusting the relationship, the claimant agreed to help and arranged the funds by withdrawing the amount from his wife’s bank account, which he was legally authorised to manage through an official power of attorney.

He then transferred the money to his friend’s account, expecting it to be repaid. However, according to the case, the repayment never came. The claimant told the court that he initially tried to resolve the matter privately, but after repeated delays and unanswered requests, he was forced to take legal action.

The defendant denied owing any money and argued that there was no written loan agreement. He also claimed the claimant had no legal standing to file the case because the funds came from his wife’s account. The court, however, found these arguments unconvincing.

Judges said the power of attorney clearly gave the claimant the right to manage the funds and pursue legal claims. They also noted that banking records showed the money had been transferred to the defendant, who did not dispute receiving it.

The ruling stated that once the transfer was established, it became the defendant’s responsibility to prove he had a legitimate reason to retain the money or that he had repaid it. As he failed to provide such evidence, the court concluded that the debt remained outstanding.

In its decision, the court reaffirmed the legal principle that money received without legal justification must be returned to its rightful owner.

The court ordered the defendant to repay the full amount, along with 5 per cent annual interest from the date the case was filed until the payment is completed. He was also ordered to pay court costs and legal expenses.

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