DCC 34/2019
This case involved an investment contract which was not honoured. A key issue was whether the DIFC Courts had jurisdiction when although one of the parties was a DIFC entity the parties to the contract had agreed to the jurisdiction of the Dubai Courts.
Background
An Appellant filed a suit No. 3267/2017 against the Respondent a Consultancy requesting the payment of 441,000 AED with interest on the basis that at an earlier date, in Dubai, the Appellant agreed with the Respondent to participate in an investment in one of the projects, and that, accordingly, the Appellant paid the Respondent 1,500,000 AED.
According to this agreement, he was entitled to 30% of the project which was being established with the Respondent, provided that they had the same percentage: 30% of the profits.
However, two years after the signing the agreement and the establishment of the project, the Respondent returned the amount paid without interest or profits and signed another agreement with him recognising the delivery of accrued interest for 90 days, but this did not happen which lead to the filing of lawsuit No. 56/2017 in which the Managing Expert concluded that the Appellant was entitled to 441,000 AED.
Proceedings: