Court obligates marketing institution to return Dhs100,000 to petroleum company

Mohammed Yaseen, Staff Reporter

The Court of First Instance in Dubai obligated a marketing management institution to return Dhs100,000 to a petroleum products company which it cheated by claiming its ability to provide it with financing of Dhs35 million and consequently obtained Dhs100,000 from it.

The court also obligated the institution to pay a legal interest of 5%, from the date of the claim until full payment, besides the fees and expenses of the lawsuit and lawyer’s fees, and terminated the contract between the company and the institution.

The details of the case date back to August 2023, when a petroleum products company filed a lawsuit against a marketing institution, demanding that the latter is obligated to return Dhs100,000, which it seized through fraud.

The company previously signed a contract which stipulated that it should pay Dhs500,000, the value of the first installment of financing.

The expert's report proved that the institution did not have a licence from the Central Bank for financial intermediation.

Badr Khamis, the company’s lawyer, explained that he submitted the contract concluded with the appellee and copies of WhatsApp messages, so the court appointed an expert who proved in his report the validity of the company’s claim and the appellee’s procrastination in facilitating the financing, besides the institution’s demand that the company pay Dhs500,000, the value of the first installment of the financing which it did not receive.