أسئلة وأجوبة
How to claim an amount by mistake to a company which is not responding or returning it back?
An "A" individual / Company by mistake transfers/deposits some funds to another "B" company.
"B" company, despite certain follow-up efforts with "A" Company to recall or claim back the wrong payment, remained unresponsive, and “A" company could not track the depositor information.
In such cases, what is the time frame within which "A" Company is liable to retain in suspense?
Can "A" company deny the claims of "B" company in the future, as it was written off by "A" company after a few months of tracking.
Dear Questioner,
Thank you for your message.
In cases where funds are mistakenly transferred from one party (Company A) to another (Company B), UAE law considers this an unjust enrichment. Company B has a legal obligation to return the funds once the error is identified.
Even if Company A wrote off the amount internally after being unable to trace the source, this does not cancel Company B’s right to claim the amount later, especially if it can provide proof of the mistaken payment.
There is usually a legal time limit (statute of limitations) of 2 to 3 years to file such a claim, depending on the circumstances.
It is advisable for Company B to formally notify Company A in writing with supporting documents and request the refund. If no response is received, legal action may be considered.
We can assist you with drafting the proper legal notice or advising on next steps. Please let us know if you’d like to proceed.
Greetings,
Mohammed Salah
Legal Consultant
Dear Inquirer,
Thank you for your message.
In such cases, the company that received the mistaken payment (Company B) retains the legal right to claim the funds, even if Company A has written off the amount or failed to trace it after initial efforts.
Writing off the amount in accounting records does not extinguish the legal obligation to return wrongly received funds.
The limitation period to file a legal claim in the UAE is generally 15 years, unless specific contractual or commercial rules apply. However, prompt legal action is always recommended to avoid complications.
For a detailed review and assistance in claiming or defending such amounts, we recommend booking a consultation or appointing Future Vision for Advocacy and Legal Consultancy to act on your behalf.
We are happy at Future Vision Law Advocates and Legal Consultancy to assist you and provide the best legal services that meet your needs.
To contact us, you can call or WhatsApp us.
Dear questioner
This is a common scenario that falls under the principle of unjust enrichment in UAE law.
Article 318 of the UAE Civil Code states, "No person may take the property of another without legitimate cause. Where he takes it, he must return it".
"A" has a legal and moral obligation to return the mistakenly transferred funds to Company "B". The fact that Company "A" couldn't immediately identify the source or that Company "B"'s follow-ups were not perfectly tracked does not extinguish this fundamental obligation.
In some cases, intentionally retaining funds that were mistakenly transferred, especially after being notified, can potentially lead to criminal charges under the Cybercrime Law related to illegal gain or unjust enrichment.
While this is more common for individuals who spend the money, a company deliberately ignoring legitimate claims could face scrutiny.
Company B has every right to claim the money without any limitation. If you need more clarification over the matter then kindly share your whatsapp number.
In the United Arab Emirates, the handling of mistakenly transferred funds is generally governed by principles of civil law and contractual obligations. Here's a general overview of how such situations might be handled under UAE law:
1. Obligation to Return Funds: If a company or individual receives funds in error, they are typically obligated to return those funds. This is based on the principle of unjust enrichment, where one party should not be unjustly enriched at the expense of another.
2. Efforts to Recover Funds: The party that made the erroneous transfer (Company "A") should make reasonable efforts to recover the funds. This includes attempting to contact the recipient (Company "B") and requesting the return of the funds.
3. Time Frame for Recovery: There is no specific statutory time frame under UAE law for how long Company "A" has to recover the funds.
However, the general limitation period for civil claims in the UAE is 15 years, unless a specific law provides otherwise. This means that Company "A" could potentially pursue a claim to recover the funds within this period.
4. Suspense Account: If Company "A" cannot identify the depositor or resolve the issue promptly, it may hold the funds in a suspense account while continuing efforts to identify the source and rectify the situation.
5. Denial of Claims: If Company "A" writes off the amount after reasonable efforts to recover it, this does not necessarily absolve them of the obligation to return the funds if Company "B" later comes forward with a valid claim.
Company "A" may still be liable to return the funds, as the write-off is an internal accounting decision and does not affect the legal obligation to return mistakenly received funds.
6. Legal Action: If Company "B" believes it has a rightful claim to the funds, it may need to take legal action to recover them. This could involve filing a civil lawsuit to compel Company "A" to return the funds.
Company A must document its recovery attempts (letters, emails, correspondence with the bank).
If no further contact is forthcoming, the amount must not be written off completely until the statutory limitation period (3 years) has expired.
It can include the amount under "doubtful receivables" in its accounting without forfeiting its legal claim.
Dear Inquirer,
We are pleased to serve you and address your legal concerns.
In order to provide accurate advice regarding the matter of a mistaken fund transfer and the related responsibilities or potential claims, we recommend scheduling a legal consultation.
This will allow us to better understand the context and offer you the appropriate guidance based on the applicable UAE laws.
Please contact us via email or WhatsApp.
NJA | Jasim Al Haddad Advocates & Legal Consultants
Company A must retain mistakenly transferred funds in suspense and cannot deny a valid future claim from Company B, even after writing it off, unless legally justified.
No fixed legal time limit applies, but 3–5 years is standard.
According to UAE law, if funds are mistakenly transferred to Company "B" and Company "A" cannot retrieve them after reasonable follow-up efforts, Company "A" may hold the funds in a suspense account for a reasonable period (typically between 6 months to a year).
After this period, if no claim is made, Company "A" may be able to reject future claims.
We specialize in financial legal matters and provide precise legal advice in such cases. Feel free to contact us via WhatsApp for detailed legal consultation on your situation.
Dear Sir/Madam,
Thank you for reaching out. In such cases, the receiving party ("A") is not legally entitled to dispose of the mistakenly transferred funds, even if the amount was written off after a certain period.
If "B" can provide clear evidence that the funds were transferred in error, "A" may still be obligated to return the funds.
We are ready to provide full legal support, whether through preparing a formal claim or representing you before the competent authorities to ensure recovery of the amount.
To schedule your free 30-minute legal consultation, please contact us at:
Alya Alzeera
Lawyer & Legal Consultant – Licensed in UAE & Bahrain
