Controversial Loan Default: European Borrower Refuses to Repay Dh1.5 Million Debt to Friend

A UAE court ordered a European man to repay 1.514 million dirhams to his friend who helped him through financial troubles, plus 100,000 dirhams in damages for delays and evasion. The case highlights how personal loans between friends can turn into complex legal battles when trust breaks down.

The friendship started with a simple request for help. One European businessman approached his friend about serious financial problems affecting his business operations. The friend responded by lending 1.514 million dirhams and transferring an additional 225,000 euros to a company account at the borrower's request.

But instead of gratitude and timely repayment, the lender faced delays, excuses, and broken promises. The borrower kept making excuses through WhatsApp and Telegram messages, forcing his friend to take legal action.

In court, the defendant's legal team argued the money transfers were business transactions, not personal loans. They claimed the funds were payments for previous commercial obligations between the two men. The case went to a financial expert for detailed analysis.

**Court's Analysis and Evidence**

The court applied established legal principles about bank transfers. Under UAE law, when someone transfers money, there's a presumption it's paying off an existing debt or obligation. Anyone claiming otherwise must provide proof.

The financial expert confirmed the plaintiff had transferred exactly 1,514,470 dirhams to the defendant's account. The court found clear evidence through bank receipts and transfer documents. But the defendant couldn't prove these were business payments or purchases of goods.

"The defendant only said they were for 'other transactions' without providing any supporting evidence," the court noted.

**Split Decision on Claims**

The court ruled in favor of the main claim, ordering repayment of the 1.514 million dirhams. But it rejected the 225,000 euro claim because there wasn't enough proof connecting the recipient company to either party or showing the defendant benefited from that transfer.

The 100,000 dirham compensation covers both material and moral damages. The court recognized the plaintiff lost opportunities to invest or use his money productively during the dispute period, plus the costs and stress of going through the legal system.

This case shows how friendship-based financial arrangements can go wrong without proper documentation. Even close relationships need clear terms and evidence when large sums are involved. The court's decision reinforces that verbal agreements and trust, while valuable, may not be enough protection in serious financial disputes.

For anyone considering lending money to friends or business partners, this case demonstrates the importance of written agreements and keeping detailed records of all transactions.