A court in Dubai has ordered a man to repay Dh2.25 million to a former friend who lent him the money during a financial crisis.
The Civil Court of First Instance ruled that the defendant must return the amount after evidence showed that the funds were transferred directly to his bank account and that he failed to provide any legal justification for keeping the money.
According to court records, the two men were close friends when the defendant approached the claimant seeking financial help for his struggling business.
Trusting their friendship, the claimant agreed to assist and arranged the funds by withdrawing money from his wife’s bank account, which he was legally authorized to manage through a power of attorney. He then transferred the amount to his friend’s account, expecting it to be repaid later.
However, the repayment never came. The claimant told the court that he initially tried to resolve the issue privately, but after repeated delays and unanswered requests, he decided to file a legal case.
The defendant denied owing any money and argued that there was no written loan agreement between them. He also claimed that the claimant had no legal standing to file the case since the funds came from his wife’s bank account.
The court rejected these arguments, stating that the power of attorney allowed the claimant to manage the funds and pursue legal action. Judges also noted that banking records clearly confirmed the transfer of the money to the defendant’s account.
The court said that once the transfer was proven, it became the defendant’s responsibility to show evidence that the money had been repaid or that he had a legal right to keep it.
Since the defendant failed to present such proof, the court ruled that the debt remained unpaid and must be returned.
The court ordered the defendant to repay the full Dh2.25 million, along with 5 percent annual interest from the date the case was filed until the payment is completed. He was also ordered to cover court costs and legal expenses.
