Court Throws Out Dh3.9 Million Claim in Disputed Business Deal Over Lack of Proof

A commercial partnership involving three individuals unravelled into both criminal and civil litigation after two partners accused a third, along with four others, of breach of trust and deception in what they termed a “suspicious deal”, a court has heard.

The matter was initially referred by prosecutors to the Dubai Criminal Court, which acquitted all defendants. The case subsequently shifted to the civil courts, where the two partners jointly sought Dh3.899 million in compensation and demanded the return of two cheques totalling Dh12.95 million, or payment of their value. The court ultimately dismissed the claim.

Court documents show the dispute began when the first defendant allegedly informed his partners that he had strong connections with two companies capable of supplying electrical goods at competitive prices. Acting on this, the claimants issued purchase orders worth around Dh16.8 million. They transferred Dh2.899 million to one company and its manager, and a further Dh1 million to another. Two cheques covering the remaining balance were handed to the first defendant, reportedly to be presented after delivery of the goods.

The claimants argued that the cheques were encashed before any goods were delivered, leading them to file a criminal complaint. However, the defendants were acquitted, and the matter proceeded as a civil dispute.

In its judgment, the court emphasised that the burden of proof lies with the party bringing the claim, adding that “liability is an exception to the presumption of innocence”. It found no evidence of a binding contractual relationship between the claimants and the two companies, pointing to unsigned quotations and the absence of proof that the purchase orders had been received.

The court further noted that the trade licence of one of the companies did not cover electrical goods, undermining the argument that it was obligated to supply such products.

On the issue of the cheques, the judges said there was no evidence to suggest they were conditional or issued without lawful cause, describing the claimants’ assertions as unsupported.

A counterclaim filed by the defendants, seeking Dh2 million in damages for alleged misuse of legal proceedings, was also rejected. The court held that the right to pursue legal action is protected, and that an acquittal alone does not establish malicious prosecution in the absence of proof of bad faith.

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