Dubai Court ruling has sponsors on ‘debt’ alert

The Dubai Court of Cassation has said that the right of a sponsor to claim debts paid for a person sponsored is restricted by the condition that the debt must be paid after the request and approval of the sponsored person.

Secondly, the sponsor has actually paid the debt amount and does not only claim to have done so.

According to the court ruling, if the sponsor paid the debt of the person under his sponsorship without his/her knowledge, it will be considered a donation.

The court added that in such a case the sponsor has no right to recover the debt paid from the person sponsored.

Based on these principles, the Dubai Court of Cassation accepted the case of a female doctor against a hospital which was paid Dh984,000 as compensation.