Misdemeanor Court Acquits Manager In Dhs6.3 Million Embezzlement Case

 

The Misdemeanor Court in Dubai has acquitted a company manager accused of embezzling Dh6.23 million from company funds, ruling that the evidence did not establish either the alleged misappropriation or an intention to unlawfully take the money.

 

The court also rejected a civil claim filed against the manager, ordering the complainants to bear the costs and legal fees.

 

The case arose after two partners in the company accused the manager, who was responsible for its management and financial affairs, of taking company funds through withdrawals and other financial transactions between 2018 and 2024. The partners also sought temporary civil compensation of Dh51,000.

 

Court Examines Company Accounts

 

During the proceedings, the court appointed an accounting expert to examine the company's financial records, accounts and supporting documents. The expert found that the transactions under scrutiny had been recorded in the company's books and in the relevant partner's current account.

 

The examination also found that payments relating to profit distributions were based on decisions signed by the complainants or their authorised representatives. The court considered this significant because it indicated that the complainants were aware of and had approved the transactions in question.

 

The court further noted that the withdrawals and other financial transactions had been reflected in the company's accounts, while the profit distribution decisions carried the signatures of the complainants or their representatives.

 

Evidence Insufficient To Prove Embezzlement

 

In its judgment, the court held that a breach-of-trust offence requires proof that money was entrusted to the accused under one of the contractual arrangements recognised by law, followed by an intention to misappropriate or use the money in a manner that causes harm to its owner.

 

The court found that the evidence presented by the complainants, including their statements and the accounting report submitted during the proceedings, was insufficient to establish the alleged offence. The findings of the court-appointed expert did not support the claim that embezzlement had occurred.

 

It also found that the documents before it did not provide conclusive evidence of an intention by the manager to unlawfully take the funds. The existence of debit balances or financial and accounting disputes between business partners, the court said, was not by itself sufficient to establish criminal intent.

 

Court Rejects Civil Claim

 

Based on its assessment of the evidence, the court concluded that the legal elements required to establish a breach of trust had not been established against the manager.

 

The court therefore acquitted the manager, rejected the related civil lawsuit and ordered the complainants to pay the costs and legal fees.