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22.08.2025

Court Orders Repayment in Financial Dispute Case

Illustration for: Court Orders Repayment in Financial Dispute Case

The Al Dhafra Court of First Instance has decided in favor of a man regarding a financial dispute. The court has ordered the defendant to repay Dh30,650, determining that the money was a personal loan, not an investment in a contracting business.

This case began on July 18, 2025, when the plaintiff filed a lawsuit demanding the defendant repay the amount, along with fees and expenses.

The plaintiff claimed that the funds were lent to the defendant in installments from January to May 2025, with a promise of repayment in June.

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Despite repeated requests, the defendant failed to repay the loan. To support his claim, the plaintiff provided bank transfer records as evidence.

Defendant’s Argument

In defense, the defendant contended that the money was not a loan but rather expenses for a business partnership in contracting.

He stated that he advertised for an investor for a contracting company, after which the plaintiff approached him, and they agreed to a partnership (the plaintiff providing funds, the defendant offering expertise).

The defendant claimed that the plaintiff did not fulfill his promise to supply a car or operational funds, leading to business failure. He argued that the plaintiff wrongly considered the funds a loan, which were actually used for business operations. The defendant submitted invoices and documents, including some in English, such as printing invoices, car rental agreements, and purchases.
However, the plaintiff maintained that the funds were indeed a loan, pointing out that the defendant admitted receiving the money but failed to prove any actual partnership or work completed.

Decisive Oath

During the hearings, the defendant appealed for a decisive oath to resolve the dispute.

The court required the plaintiff to take the following oath:

“I swear by Almighty God that I lent the defendant Dh30,650 in installments through bank transfers, that he promised to repay them in June 2025 but failed to do so, and that the money had no connection whatsoever to any partnership in a contracting company.” The plaintiff took the oath as required.

Court’s Judgment

After the plaintiff took the decisive oath—a binding legal procedure—the court ruled in his favor.

The court ordered:

  • The defendant to repay the plaintiff Dh30,650

  • The defendant to cover court fees and expenses

This case underscores a key lesson from legal experts: the importance of thoroughly documenting business relationships.

Written contracts, clear repayment terms, and supporting documentation not only protect both parties but also provide concrete evidence for courts in case of litigation.