Dubai: A Dubai court has ordered a former manager to repay a $20,000 loan he received from an employee more than ten years ago, ruling that the debt remains valid despite the passage of time and repeated assurances that repayment would be made.
According to court documents, the case dates back to when the employee loaned the money to his manager during their time working together, after the manager claimed to be facing temporary financial difficulties. The employee presented evidence showing that the amount was transferred in good faith, with the understanding that it would be repaid once the manager’s situation improved.
The defendant argued that the claim should no longer be enforceable due to the time that had elapsed since the loan was issued. However, the court rejected this argument, noting that the manager had repeatedly acknowledged the debt over the years and had made several verbal and written promises to settle the amount, effectively keeping the obligation active.
The court found that these acknowledgements constituted proof that the debt was still outstanding and legally binding. Judges ruled that the employee had provided sufficient documentation to establish the loan, including bank transfer records and message exchanges confirming the defendant’s commitment to repay.
In its judgment, the court stressed that personal loans between individuals – even when made informally – remain enforceable under UAE law if supported by evidence and acknowledgment. The ruling reinforces the principle that delaying repayment does not invalidate a financial obligation, particularly when the debtor continues to recognise the debt.
The former manager was ordered to repay the full $20,000, along with court fees. The court did not impose additional damages, stating that the primary objective was to restore the claimant’s financial rights.
Legal experts say the ruling serves as a reminder for both employers and employees to formalise financial arrangements and retain documentation. It also highlights the importance of clear records when disputes arise years after an agreement is made.
The judgment is subject to appeal within the legally prescribed timeframe.
