The Federal Supreme Court referred a commercial dispute between three partners to the Court of Appeal, one of whom demanded to prove his partnership with the other two partners, to receive 50% profits from a company established between them, and to oblige the partners to pay two million and 346 thousand dirhams.
In detail, a company filed a lawsuit against two of its partners, requesting the judgment to delegate an expert in the case to prove a partnership between them and the defendants and settle the account between them, and the amount due from the profits during the three years from 2009 to 2012.
The plaintiff said that «a limited liability company, working in the field of iron tools trade, and in July 2009 agreed with two partners on their partnership in a company, to receive 50% of the profits, and the managers of the two companies get 50% of the profits equally between them, but it "You didn't get the profits."
It demanded that the defendants be jointly obliged to pay the amount of two million and 346 thousand and 678 dirhams, and benefit 12% from the date of filing the lawsuit until full payment.
The Court of First Instance rejected the lawsuit by the company and obliged the two partners to jointly pay the plaintiff an amount of AED 1,919,234 and its interest is 5% from the date of registering the application amendment list until full payment.
The Court of Appeal then ruled to amend the judgment, making the amount decided by 756 thousand and 431 dirhams, and to support it otherwise.
The two partners - the defendants - appealed the verdict by cassation.The defense argued that the verdict was wrong in applying the law, insisting before the trial court that the plaintiff should not be considered a partner in the defendant company, a limited liability company, for violating the provisions of the Commercial Companies Law.
The Federal Supreme Court upheld this appeal, explaining that the plaintiff filed its claim in order to prove that it was a partner in the limited liability company with a share of 50% of the profits, and answered the judgment of appeal and obliging the two partners to pay her the amount of 756 thousand and 431 dirhams share of the profits, after the judgment concluded That the plaintiff is a partner in the aforementioned limited liability company, without being aware that the latter company as a limited liability company does not fit as a reality company, and may not enter into it as a reality partner, through what it claims from its agreement with one of its partners and another on Do a reality company between them.