UAE Court Directs Investor to Repay Dh292,000 and Dh10,000 in Damages

The Al Ain Court for Civil, Commercial, and Administrative Claims has ordered an investor to return Dh292,000 to a man after failing to settle the full sum of a Dh500,000 investment he had taken for his business, Emarat Al Youm reported.

 

The court also directed the defendant to pay Dh10,000 in damages to the plaintiff for losses caused by withholding funds and delaying repayment.

 

As per court records, the plaintiff filed a claim demanding Dh440,000, the unpaid balance of the loan, plus Dh50,000 in damages for both material and moral loss, in addition to legal fees and court costs. He stated that Dh500,000 had been transferred to the defendant for investment purposes, with an agreement to return the capital alongside a share of profits.

 

After some months, the defendant returned Dh148,000 as alleged profits and only Dh60,000 of the capital. The remainder was left unpaid despite repeated demands. At hearings, the defendant initially denied any deal, asserting he had not received funds. When presented with transfer slips, he admitted receiving the Dh500,000 but claimed it was repayment for a debt owed to him by the plaintiff -- an allegation he could not prove.

 

The plaintiff contested this, insisting the money was strictly for investment.

 

Court Proceedings

To resolve the dispute, the court invoked provisions under the Evidence Law and asked the plaintiff to take a supplementary oath. Under oath, the plaintiff confirmed the Dh500,000 was an investment and not repayment of debt, and that the defendant had returned only Dh208,000 in total, leaving Dh292,000 outstanding.

 

The court ruled the defendant had indeed taken the funds and failed to return the remainder, validating the plaintiff’s stance. Regarding damages, the court said the delay in repayment deprived the plaintiff of access to his money and caused time, effort, and legal costs. It concluded there was a direct link between the delay and the losses, making the defendant liable.

 

Final Ruling
The court ordered the defendant to:

 

• Repay Dh292,000, the outstanding capital.

• Pay Dh10,000 as damages for financial and moral harm.

• Cover all legal and court costs.

 

All other claims by the plaintiff were dismissed.