Court Orders Man To Return Dh1.35M Investment Capital To Business Partner

The Dubai Civil Court has ordered an Arab national to repay Dh1.35 million in investment capital to a business partner, rejecting his argument that previous profit payments had settled the financial obligation.

According to court records, the plaintiff had handed over Dh1.35 million to the defendant several years ago under a commercial agreement. The funds were intended to be invested in a car trading business in Dubai, which initially generated returns for the investor.

The business relationship later deteriorated, however, with the defendant failing to return the original capital despite repeated demands from the investor. The plaintiff subsequently filed a civil case seeking recovery of the Dh1.35 million.

During the proceedings, the defendant's lawyer argued that the claim should be dismissed because the investor had already received Dh1.1 million in profits and dividends during the period of the business relationship. The defence maintained that these payments should be taken into account when determining whether any amount remained payable.

The court rejected that argument, finding that profits distributed during the investment period were separate from the original capital. The payment of commercial returns did not remove the defendant's obligation to return the principal amount to the investor when it became due.

The court also considered WhatsApp messages exchanged between the two parties as evidence in the case. The messages established that the Dh1.35 million had been provided as investment capital and was not intended to become the defendant's permanent property.

Based on the evidence, the court ordered the defendant to repay the full Dh1.35 million principal to the plaintiff. It also ordered him to pay legal interest at an annual rate of 5 per cent, calculated from the date the lawsuit was filed until the amount is paid in full. The defendant was further ordered to bear the litigation costs.