National to pay Dh66,431 to investor for breach of pact

ABU DHABI — The Federal Supreme Court has ordered a UAE national to pay a compensation of Dh66,431 to an investor against the damages the latter sustained after the former illegally shut down two shops he used to run.

By A Staff Reporter

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Published: Wed 6 Sep 2006, 9:43 AM

Last updated: Sat 4 Apr 2015, 8:19 PM

In its verdict, the Federal Supreme Court said that the sponsor should not have closed the project, as he had to take the investor’s approval in advance.

Court records showed that Ahmed Hussain, a national, filed a lawsuit with the Abu Dhabi Federal Court of First Instance against an expatriate investor, identified as Naya Kan, for allegedly misusing two shops he owned by counterfeiting foreign trademarks. The national pleaded the assignment of an actuary to evaluate his dues, as he used to earn Dh4,000 per year for sponsoring the shops — ‘Adventure Lady Dressmaking’ and ‘Adventure Trading’.

The investor filed a countersuit, demanding an assertion of his ownership to the two shops, besides a compensation of Dh160,000 against the financial damages he sustained, following the national’s closure of the shops. The Abu Dhabi Federal Court of First Instance, early this year, ordered the national to pay a compensation of Dh66,431 to the investor. Being dissatisfied, both litigants contested the verdict with the Abu Dhabi Federal Court of Appeal, which on March 30, dismissed their petitions, and confirmed the earlier ruling.

The national moved the Federal Supreme Court, which rejected his petition. In reply, the court said that the national proved to have breached the agreement he had sealed with the investor, since he shut down the shops without his consent, despite being paid against sponsorship. The commodities, in addition, proved to be genuine, as per the lab report. As such, the apex court confirmed the previous judgment, and ordered the national to pay the compensation.

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