Dubai Court obliges employee to refund DH899,960 embezzled from company
The Civil Court in Dubai has issued a ruling compelling an employee found guilty of embezzlement to reimburse the sum of 899,930 dirhams to the company he was employed by, along with an additional compensation of 30,000 dirhams.
This ruling was rendered following a final judgement against the employee by the Penal Court, which he chose not to appeal.
The lawsuit started when the harmed company filed a complaint against one of its workers, claiming that the worker had illegally taken money meant for the company's purpose and used it for personal benefit.
Subsequently, the Dubai Public Prosecution commenced an inquiry into the matter, charging the employee with embezzlement of funds or securities entrusted to him with the intent to harm the rightful owners or breach trust. After due process, the Misdemeanour Court convicted him based on witness testimonies and case documentation, sentencing him to a two-month imprisonment and imposing a fine of 899,930 dirhams, coupled with deportation following the completion of his sentence.
Concurrently, the company pursued civil litigation, initiating legal proceedings against the accused and seeking restitution of the misappropriated amount along with a 9% legal interest from the date of non-payment. Furthermore, the company demanded compensation totaling 500,000 dirhams for the damages incurred and lost earnings resulting from the defendant's actions, in addition to litigation expenses and attorney fees.
Arguing that the accused, as its employee, had committed embezzlement to its detriment, the company cited the criminal verdict from the misdemeanour court as grounds for its civil claim. With the accused failing to contest the ruling within the stipulated timeframe, the company obtained a certificate from the Public Prosecution affirming the finality of the judgement.
Upon review of the case materials, the Civil Court of First Instance affirmed the legal validity of the criminal ruling in civil proceedings, emphasising the prohibition against re-examining dismissed criminal cases. Consequently, the court mandated the defendant to reimburse the misappropriated sum of 899,930 dirhams while setting a 5% interest rate for tardy payment. Moreover, it awarded the company compensation amounting to 30,000 dirhams for the proven damages inflicted by the defendant's actions.
