UAE court obliges a young man to pay 195,000 dirhams for breach of trust case

A verdict was issued by the Abu Dhabi Family, Civil, and Administrative Claims Court mandating the repayment of 195,000 dirhams borrowed by a young man from the plaintiff for the purpose of investing in trade. The defendant neglected to honor his obligation and abstained from repaying the borrowed sum.

The plaintiff initiated legal proceedings against the defendant, seeking repayment of the 195 thousand dirhams along with 12% legal interest on the principal sum from the date of filing the claim until full repayment, in addition to fees, expenses, and legal costs. It was asserted that the defendant borrowed the aforementioned amount with the intention of investing it in commercial activities and undertook to repay it within one month. However, the defendant defaulted on the repayment, failing to honor his commitment.

In its deliberations, the court emphasized the requirement for the plaintiff to substantiate his claims in accordance with the provisions of the Evidence Law in Civil and Commercial Transactions, allowing the defendant the opportunity to refute them. The evidence presented confirmed that the plaintiff had transferred 195 thousand dirhams to the defendant, who had undertaken to repay the amount within the specified timeframe. The defendant neither contested nor presented any evidence to refute the plaintiff's assertions regarding the loan or its repayment.

Regarding the plaintiff's request for legal interest at a rate of 12% per annum from the date of filing the lawsuit until full repayment, the court, having established the defendant's liability for the borrowed amount, granted the plaintiff's request, albeit at a reduced rate of 5% per annum. The court ordered the defendant to repay the principal amount of 195 thousand dirhams along with the accrued interest at a rate of 5% per annum from the date of the final ruling until full repayment, within the limits of the principal amount, in addition to covering the fees and expenses.

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