The image has been used for illustrative purpose.

Sohaila Ahmed, Staff Reporter

The Dubai’s Commercial Appeal Court has upheld a ruling issued by the Court of First Instance, that ownership of a debt collection institute belongs to an Arab investor, and not to the sponsor, who is a GCC national, and claims to be the company owner.

Official records indicate that the Arab investor had filed a case against his company’s sponsor, claiming that the sponsor is trying to overtake the company he established since 2006.

Court files revealed that the sponsor exploited his powers when the investor travelled abroad, and used bank account under the company’s name to withdraw money.

When the victim confronted the defendant, he claimed that the bank had allowed the cash withdrawal as he was the real owner of the company and not just a sponsor.

The defendant also mentioned that the victim was just a manager in the company and not its owner.

The lawyer appointed to the case revealed that a settlement was made between the parties, in which the investor had to pay Dhs200,000 to transfer the company’s ownership and trade licence under his name.

However, the GCC national was stalling the agreement until he carried out a one-signature annulment and withdrew the power of attorney to obstruct the victim’s management of the company.

The lawyer also mentioned that the court was provided with all documents that proves the ownership of the investor, as well as revealing a false report that was filed by the sponsor, who claimed that the investor had embezzled Dhs3.3 million as the company owner.