Investor Loses Dh20 Million Refund Battle Over Al Barsha Property Deal

An investor has lost a legal battle against a property developer over a refund claim exceeding Dh20 million for multiple residential units in Al Barsha South.

The dispute centred around a property deal valued at Dh38.3 million, of which the investor had paid more than Dh23.5 million—including Dh200,000 in cash. The investor later sought a refund of Dh20.5 million, in addition to Dh1 million in compensation and 12 per cent annual interest.

The case was initially filed before the Dubai Real Estate Court, which ruled in favour of the developer. This decision was subsequently upheld by both the Court of Appeal and the Court of Cassation.

The Supreme Court ruled that the investor was not entitled to a refund solely on the grounds that the payment was not deposited into an escrow account -- especially since the units were delivered and later resold by the investor. The court found no evidence of harm caused by the funds not entering the escrow account. The investor also failed to request termination of the Sales and Purchase Agreement (SPA), further weakening the refund claim.

The judgment also noted that the investor was unable to demonstrate that the resale value of the units was negatively affected by the developer’s handling of the escrow process. Moreover, the court found no breach of the SPA by the developer in terms of unit delivery.

The investor additionally argued that no receipts were issued for a portion of the payment, despite the developer having received the funds. This claim was dismissed by the court, which accepted the developer’s confirmation of full payment receipt.

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