DCC 92/2009

This case involved non-payment of a profit share in a partnership. One of the partners had not paid their capital which meant the company did not exist. Any profits would be used to cover the company's debts and the remainder would be given to the partner who paid in their capital.

Background

A Claimant brought forward proceedings against the Respondent alleging that the Respondent, the director of the company was their partner to, and had failed to properly and fairly distribute profits to the Claimant from the shared operation of the company.

The Respondent alleged the nullity of the company, calling for its liquidation and non-sharing of the profits as the Claimant had not paid their share in the company's capital.

Proceedings

Dubai Court of First Instance - Decision NO 820 of 2005

Under decision 820/2005 the Court of First Instance refused allowed the Claimant's claim.

Dubai Court of Appeal - Decision No 702 of 2008

Under decision 702/2008, the Court of Appeal refused the Court of First Instance's decision, basing its rationale on the fact that the company was null and void due to the non-payment by the Claimant of their share in the capital.