UAE Court Orders Man to Return Dh37,000 from Mistaken Transfer, Pay Damages

In a recent ruling, a UAE court has ordered a man to repay Dh37,000 that he unlawfully retained after receiving a mistaken bank transfer, along with an additional Dh3,000 in compensation for damages. The judgment was delivered by the Al Ain Court for Civil, Commercial, and Administrative Claims, reinforcing the country’s strict stance on financial integrity and legal compliance.

 

Case Summary

The incident began when the defendant received Dh57,000 in his bank account by mistake. The sender, realising the error, immediately contacted him. Despite acknowledging the mistake, the recipient returned only Dh20,000, withholding the remaining Dh37,000.

Following this, the affected party filed a civil lawsuit, demanding the return of the outstanding amount along with Dh10,000 in damages for both material and emotional distress. The plaintiff also requested that the defendant bear all legal fees and court expenses.

 

Legal Findings and Compensation

The court, after reviewing evidence and confirming the absence of any legal response from the defendant, concluded that:

• The money was unlawfully retained

• The claimant endured material harm (effort and cost of recovery)

• The claimant also suffered moral harm (stress and anxiety)

As per UAE law, any party causing proven harm through fault and resulting damage is liable to pay compensation. The court upheld this principle and awarded the full Dh37,000 repayment along with Dh3,000 for damages.

 

Final Ruling

The court’s decision:

• Repayment of Dh37,000

• Dh3,000 compensation

• Full coverage of legal costs and court expenses by the defendant

This case serves as a reminder of the UAE’s strict enforcement of financial laws, particularly regarding unjust enrichment and obligations to return mistaken transfers.

 

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