The Dubai Civil Court of First Instance ruled that an Arab man must repay AED15 million that he borrowed from another individual. The ruling was based on his explicit acknowledgement of the debt and his commitment to repay the amount. However, he failed to do so despite repeated amicable requests from the plaintiff.
An Arab man filed a lawsuit demanding that another Arab man pay AED15 million, in addition to legal interest of 12 per cent from the date the debt became due until full payment.
In his statement of claim, the plaintiff said he had lent the defendant the money as part of a business relationship. He stated that the defendant signed a debt instrument acknowledging that he owed the claimed amount and undertaking to repay it. The document also stipulated that the creditor had the right to take legal action to recover the debt without prior warning or notice if payment was not made.
He added that he had repeatedly requested payment amicably, but received no response. He then sent a legal notice to the defendant, who still failed to pay. As a result, he filed the lawsuit seeking repayment of the principal debt, interest and legal costs.
According to the case file, the defendant did not appear before the case management office despite being legally notified. He also failed to appear before the court to present a defence or dispute the plaintiff’s claims.
The court explained in its judgment that the plaintiff relied on the debt instrument signed by the defendant, which contained an acknowledgement that he owed AED15 million and an undertaking to repay it.
The court based its decision on the provisions of the Law of Evidence, which place the burden of proof on the person claiming a right. The law also considers a signed private document to be evidence against the person who signed it, unless they expressly deny the signature, handwriting, seal or fingerprint attributed to them in accordance with legal requirements.
The court pointed out that a debt acknowledgement, when clear, specific and free from ambiguity, constitutes evidence against the person making it. It also transfers the burden of proving that the obligation has been discharged, whether through payment, expiry of the debt or another legal reason.
The court added that the case file contained no evidence that the defendant had repaid the claimed amount. He also failed to provide any evidence challenging the debt acknowledgement, leading the court to order him to repay the principal debt of AED15 million.
Regarding the interest claim, the court rejected the request to award interest at 12 per cent from the date the debt became due. Instead, it awarded legal interest at a rate of 5 per cent per annum from the date the lawsuit was filed until full payment.
The ruling was based on established judicial principles that allow late-payment interest as compensation for a debtor’s delay in fulfilling an obligation. Such interest is calculated at 5 per cent annually from the date of the legal claim when the debt amount is fixed and not subject to the court’s discretion, unless the parties have agreed otherwise.
The court also rejected the request for immediate enforcement of the judgment. It ordered the defendant to pay court fees and expenses, as well as AED1,000 in legal fees.
Source: Emirates 24|7