«Dubai Courts» proved the partnership of reality, despite not registering his name in the contract

An employee contributes 60 thousand dirhams to a company... and receives 15 million dirhams by a final ruling

• Dubai Courts ruled that the plaintiff was entitled to 50% of the company.

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• Muhammad Najib: “The defendant transferred the foundation’s funds and profits, which exceed 30 million dirhams, to his wife’s account.”

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The Dubai Court of Cassation resolved a judicial dispute, by virtue of a reference ruling, and upheld the judgment of the courts of first instance and the appeal, with the entitlement of an employee to 50% of the shares of a pharmaceutical company. The amount of incorporation, at the rate of 60 thousand dirhams, without including his name in contracts or official papers, because he was a government employee at the time.

Dubai Courts approved the reality of partnership between the employee and his partner, who repudiated him and transferred the company in the name of his wife, in order to deprive him of his rights. The failure to prove the partnership in a written contract and not to publicize it, does not prevent its existence by other means of proof, and this is what the trial court relied on, and was supported by the Courts of Appeal and Cassation.

The legal advisor representing the plaintiff, Muhammad Naguib, said that the plaintiff in this case proved that he transferred the amount to the defendant when the company was established in 2009, and the latter regularly sent reports on profits and expenses, until he decided to remove him from the partnership, after the institution grew and prospered its business.

According to the evidence from the case papers and the expert report that the court was assured of, the plaintiff, the defendant and a third partner (joined the lawsuit as an intervening opponent) agreed among themselves in 2009 to establish a pharmaceutical consulting company, provided that it be registered as a sole proprietorship owned by the defendant, given that the other two partners work Employees with another party, and they cannot register their names in the contract, and they agreed that the company’s capital would be 130 thousand dirhams, and the plaintiff paid 60 thousand dirhams from his personal account to the company’s account, then paid 30 thousand dirhams in cash, provided that his share was 50% of the partnership. The other two partners equally paid an amount of 20,000 dirhams each, provided that the share of each of them is 25%.

In 2010, they agreed to add a new activity to the company and change its name, and the defendant was providing the plaintiff with all the information about the company, contracts and otherwise, via e-mail, and they remained committed until 2020, and they also agreed to appoint the plaintiff’s wife in the company with a salary of 50 thousand dirhams, But in fact she was not working, but was getting her husband's earnings.

The lawsuit papers stated that the plaintiff left his job, decided to formally join himself to the partnership, and sat down with his two partners to draft a new contract proving his partnership by 50%, but the defendant turned against his two partners and took possession of the company's assets for himself.

The plaintiff filed a lawsuit, especially after he discovered that his partner had registered the company from the beginning in the name of the defendant’s wife, who had taken secret measures to depose his two partners, so he signed a partnership contract with his wife without their knowledge, and the institution continued to grow and prosper, and its activities expanded, and branched into other companies, and in Meanwhile, the defendant transferred the company entirely in his name, believing that he had completely divorced his two partners, because on paper they had contributed to a company owned by his wife, and in light of the transfer of ownership of it, they no longer had any rights.

The legal advisor representing the plaintiff, Muhammad Naguib, said that the defendant had taken the initiative to transfer all the foundation’s funds and profits, which exceed 30 million dirhams, to his wife’s account, in a new attempt to embezzle his partners’ shares in the profits, which represents a form of fraud, collusion and the seizure of others’ money without justification. And put them under psychological and material pressures and family burdens.

He added that his client demanded to prove a reality partnership between him, the defendant and the third partner, in the institution from the date of its establishment, and to obligate the company, the defendant and his wife to pay his due profits from the date of the company's establishment.

Najib indicated that the plaintiff based his lawsuit on the bank transfer of the incorporation amount of 60,000 dirhams, in addition to the correspondence that has been taking place between them constantly since its establishment and over the years.

After examining the case, the Court of First Instance ruled to obligate the defendant and the company to pay 15 million and 462 thousand dirhams and legal interest at 5% from the due date for the plaintiff, and also ruled that they also pay the third partner (the offensive intervening opponent) an amount of seven million and 731 thousand dirhams.

In addition, the defendant was not satisfied with the verdict, and he appealed to the Court of Appeal, which rejected the appeals submitted, and upheld the appealed ruling. He continued the appeal before the last judicial instance of the Court of Cassation, which settled the dispute with a reference ruling, which is to prove the partnership of reality, and the confirmation of the judgments of the first degree and the appeal.

• The plaintiff's partner denied him when he demanded his share and excluded him after the prosperity of business.

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