Dubai court orders man to repay Dhs266,000 in failed investment deal

An Arab persuaded another to invest money in projects and deals involving the purchase of vehicles, promising significant returns. The victim transferred funds and gave him cash Dhs366,000, of which only Dhs100,000 was returned.

Dubai Civil Court ruled that the plaintiff should be entitled to recover approximately Dhs266,000 plus Dhs50,000 in compensation for material and moral harms and 5 per cent annual interest from the date the legal claim was filed until full payment.

The case dated back to July 2023 when the defendant persuaded the plaintiff to transfer funds to him under the pretext of investing them in projects that would yield significant profits.

The defendant subsequently requested additional money to participate in a vehicle purchase deal, alleging that the funds were needed to cover administrative procedures and customs duties. Accordingly, the plaintiff not only made bank transfers but also transferred another sum through a friend and handed over a further amount in cash, as requested by the defendant.

According to a report issued by the court-appointed financial expert, the total amount of funds proven to have been transferred or handed over reached approximately Dhs366,000.

This sum included bank transfers as well as a cash amount received by the defendant’s driver, based on correspondence exchanged via WhatsApp. It was established that the defendant repaid only Dhs100,000, leaving a balance of approximately Dhs266,000 unpaid.

During the proceedings, the defendant maintained that he had returned additional cash amounts to the plaintiff, relying on the testimony of two witnesses but the court did not find these testimonies convincing, given the absence of any other documentation proving the repayment.

After examining the bank transfers, electronic correspondence and the expert report, the court stated that the burden of proof lies with the party claiming that the debt had been extinguished. As the case files contained no evidence of the return of the remaining amount, the court concluded that the plaintiff is entitled to recover it.

The court further found that the failure to return the funds deprived the plaintiff of the ability to utilize them, causing him both material and moral harms.

The court assessed the compensation for these losses at Dhs50,000 and ordered the defendant to pay legal interest at 5 per cent annually from the date the legal claim was filed until full payment plus the incurred charges, expenses and lawyer’s fees.