The Dubai Civil Court has ordered a man to repay Dh2 million borrowed from a friend, dismissing his claim that the loan was only Dh1 million and a contention that the creditor sought prohibited interest.
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The Dubai Civil Court has ordered a man to repay Dh2 million borrowed from a friend, dismissing his claim that the loan was only Dh1 million and a contention that the creditor sought prohibited interest.
The Dubai Civil Court has ordered a man to repay Dh2 million borrowed from a friend, dismissing his claim that the loan was only Dh1 million and a contention that the creditor sought prohibited interest. The plaintiff lent the money in December 2024 under a signed IOU promising repayment within three months, but the defendant failed to repay despite repeated demands.
In court, the defendant admitted borrowing money but insisted the true loan amount was Dh1 million, with Dh100,000 repaid and Dh900,000 outstanding. He argued the contract was invalid due to attempts to impose usurious interest and provided WhatsApp messages to support his case.
The judge ruled that the signed IOU was binding evidence under UAE law as the defendant never denied signing it. The court ordered repayment of the full Dh2 million loan amount plus 5% annual interest from the date of the lawsuit until full settlement. However, it rejected the plaintiff’s claim for an additional Dh500,000 in damages, citing lack of evidence of actual loss.
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