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UAE - Court Round-Up: Cassation court orders relook into verdict on loan case  Join our daily free Newsletter

MENAFN - Khaleej Times - 28/01/2014

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(MENAFN - Khaleej Times) Court of Appeal had dismissed a lawsuit filed by a company against an ex-employee, who failed to pay a loan given by the company.



The Cassation Court has revoked a verdict issued by the Court of Appeal after the latter dismissed a lawsuit filed by a company against an ex-employee, who failed to pay a loan given by the company.

A company had sued the ex-employee and demanded that he pay Dh137,850 in loans he was given when he was employed with them. After he failed to pay and settle the dispute, the company filed a labour lawsuit against him.

The employee argued that the court should dismiss the lawsuit claiming that the company did not follow the legal channel and did not present the case to the competent labour department before filing it at the court. The Civil Court of First Instance dismissed the lawsuit based on the arguments presented by the employee.

The company appealed the court's order and the Court of Appeal dismissed the appeal and upheld the lower court's verdict.

The company then filed a plea at the Attorney-General's office submitting that they appealed the appellate court's order, as per article 174 of the Civil Procedures Law.

The request was examined by Tareq Naqbi, a senior prosecutor at the Civil Prosecution. It became clear that the "appellate court's verdict was flawed in implementing the law".

The verdict considered that the lawsuit was a dispute related to rights ensuing from a labour contract. Thus, the said verdict dismissed the lawsuit and upheld the lower court's order as it did not follow the channel drawn in article 6 of the Labour Relations Organisation Law.

But in fact, the case was about the settlement of personal loans given by the employer (the company) to the employee.

The plea was presented to the Attorney-General who instructed that it be accepted and that an appeal be filed against the Court of Appeal's verdict at the Court of Cassation.

The Court of Cassation, Dubai's top court, ordered that the lawsuit be returned to the Court of First Instance to look into it and settle it again.

 






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