The Dubai Court of Cassation has upheld a final ruling ordering a family heir to repay Dh34 million ($9.2 million) to an estate, bringing closure to a legal dispute that has spanned nearly 20 years.
The case began in 2006 after the death of the family patriarch, when one heir assumed control of the family’s holding group and real estate assets. A subsequent financial review revealed that the heir had misused estate resources, including taking personal loans against assets, engaging in private property deals, and collecting undisclosed commissions.
An independent audit confirmed the misconduct, leading to a breach of trust and embezzlement conviction by the Court of First Instance, a verdict later upheld by the Court of Appeal and now by the Court of Cassation. A court-appointed custodian oversaw the estate throughout the proceedings.
Khalid Farooq, senior partner at Resilice Chartered Accountants and Advisory Services, said the case underscored widespread mismanagement. While the court addressed Dh34 million in irregular transactions, he noted that the total civil claim could be higher due to years of undistributed revenues and dividends.
Farooq stressed the importance of corporate governance in family-run businesses, calling for regular audits, transparent reporting, and clear profit-sharing policies to prevent disputes. He also cautioned heirs, particularly those who inherit assets as minors, to seek independent legal advice before signing documents confirming their dues.
In 2023, Dubai’s Special Court of Inheritance resolved Dh4.1 billion worth of cases, achieving a 92.6 percent settlement success rate, which officials said reflected the city’s commitment to managing inheritance disputes efficiently.
