UAE court fines an engineer 49,243 AED over unpaid loan installments

The Abu Dhabi Family, Civil, and Administrative Claims Court has issued a ruling compelling a consulting engineer to pay a man 49,243 dirhams, corresponding to the installments of a loan that the plaintiff had acquired on behalf of the defendant.

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The engineer failed to fulfil his commitment to repay these installments.

The case revolves around a lawsuit initiated by a man against an engineer, seeking payment of 52,243 dirhams. The plaintiff also sought reimbursement for expenses and fees. The defendant, a consultant for the construction of the plaintiff's villa, faced financial difficulties. Consequently, he requested that the plaintiff act as a sponsor for a bank loan. They mutually agreed to deduct the loan amount monthly from the plaintiff's account. The understanding was that once the defendant's residency was renewed and he resumed work, he would directly cover the remaining installments. However, after obtaining the loan, the defendant disappeared, ceasing to respond to calls.

The plaintiff had already paid 47,243 dirhams in installments, and he additionally claimed five thousand dirhams for material and moral damages.

The court, referring to the Civil Transactions Law, emphasised that taking someone's money without a legitimate reason is impermissible. As the defendant failed to present any defence or dispute the plaintiff's claims, the court deemed the plaintiff's assertion of paying 47,243 dirhams towards the bank loan as valid. Consequently, the court mandated the defendant to reimburse this amount to the plaintiff.

Regarding the compensation claim, the court acknowledged that the defendant was in debt to the plaintiff and had not fulfilled the payment. The court held the defendant at fault, causing material damages by depriving the plaintiff of the intended benefit from the amount. Moral damages stemming from the distress and regret suffered by the plaintiff were also recognized. The court deemed a compensation of 2000 dirhams sufficient to address both material and moral damages.

Moreover, the court established the defendant's liability for the outstanding loan installments and awarded compensation for the damages incurred by the plaintiff.

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