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Receiving the money back may feel like the natural end of a dispute. Once a criminal complaint has been filed, however, repayment and the conclusion of proceedings are separate matters. In UAE breach-of-trust cases, understanding the settlement procedure helps parties avoid assuming that a bank transfer has resolved everything.
The transfer notification arrives, and the money is returned to its owner. From the payer’s perspective, the problem appears to be over: no money remains outstanding, so why should the prosecution continue?
The hearing nevertheless remains listed, and the legal proceedings do not stop.
This hypothetical scene illustrates the distance between settling the financial aspect of a dispute and formally bringing criminal proceedings to an end. That distance may be decisive for someone who assumes that proof of repayment performs every necessary legal function.
Returning the money proves that a payment was made. It does not, by itself, mean that the court has acquitted the accused or formally recognized a settlement terminating the proceedings.
Each outcome has a different legal basis. An acquittal concerns whether the charge has been proved under the law and the evidence. Criminal proceedings may instead end because of a legally recognized settlement, without the court issuing a judgment determining the accused to be innocent.
Understanding the distinction prevents the inaccurate expectations after repayment.
A case considered by the Federal Supreme Court involved a judgment declaring the criminal proceedings terminated on the basis of repayment, and the deposit of an amount into the court treasury, without proof that the victim had waived the complaint, or requested the formal recognition of a settlement.
The Supreme Court held that, this basis was insufficient to terminate the proceedings. The deposited money did not, by itself, replace the legal requirement to establish the settlement in the prescribed manner.
The case explains why a formal legal procedure cannot be replaced by an inference that appears logical to one of the parties.
The person entitled to the money may receive it while leaving his position concerning termination of the proceedings unresolved. The parties may also be negotiating a settlement that has not yet been completed. A unilateral deposit does not, on its own, establish the existence of an agreement.
It is therefore necessary to determine separately what has happened to the money and what has happened to the criminal case.
The UAE Criminal Procedure Law permits settlement in breach-of-trust cases. Article 349 includes the offence under Article 453 of the Crimes and Penalties Law among the offences in which criminal settlement is permitted.
This is significant because it provides a statutory route for ending the dispute under defined conditions. The effect of the parties’ agreement is therefore governed by the law rather than left solely to their personal understanding.
Article 350 regulates how the settlement is established before the Public Prosecution or the competent court, as applicable. The settlement may be established by the victim or another person having the required authority to represent the victim.
The law also permits the accused to submit a settlement document signed by the person with the necessary capacity and notarized in accordance with the applicable requirements.
An agreement understood between the parties must therefore be placed before the competent authority through a legally recognized method.
The wording of the agreement has practical significance. Does it merely acknowledge receipt of the amount, or does it record a settlement of the incident forming the subject of the criminal proceedings? Are the parties and the particular dispute clearly identified?
General expressions such as “there is no longer any problem between us” may create a further disagreement concerning what the parties intended. The clearer the subject of the settlement, the lower the risk of conflicting interpretations when it is formally submitted.
Where someone conducts the settlement on behalf of another person, that representative’s legal capacity and authority require verification.
Participating in negotiations or carrying messages between the parties does not automatically create the power to conclude and establish the settlement. It is not enough that the person is a relative of the victim or regularly handles the victim’s affairs. Legal representation for this purpose has requirements that must be satisfied.
Particular care is also required where the agreement depends on future payment. The law does not accept an application to establish a settlement that is conditional or linked to a future date.
Merely agreeing on an instalment schedule or promising to complete payment later should not therefore be assumed to produce the desired effect on the criminal proceedings immediately. The settlement must be structured with this rule in mind when determining what the parties have agreed and what they ask the competent authority to recognize.
A settlement is not limited to the beginning of the proceedings. Article 350 permits it even after the judgment has become final. Its timing, however, affects the resulting legal consequence.
Under Article 357, the effect is the termination of the criminal proceedings or the suspension of the execution of the judgment, depending on the stage reached. Where settlement occurs after a final judgment, the Public Prosecution orders the suspension of its execution in accordance with the law.
This should not be confused with erasing the earlier conviction and treating it as an acquittal.
The distinction matters when the person later describes the legal outcome of the case. Saying that “the case ended” does not explain what decision was issued.
Termination of proceedings because of settlement differs from an acquittal. Suspension of the execution of an existing judgment differs from setting that judgment aside. The legal position is determined by the actual order or judgment and its effect, rather than by the informal description used by the parties.
A person maintaining that the offence never occurred should understand that settlement is a separate route with its own legal consequences. Completing a settlement does not, by itself, produce a judicial declaration of innocence.
The parties may nevertheless choose settlement as the legally available means of ending their dispute without waiting for the court to decide every contested issue.
The final step after the parties reach an agreement is therefore not merely to retain the bank transfer receipt. They should ensure that the settlement is formally established and that the appropriate decision affecting the proceedings or execution of the judgment is issued.
Only then does the end of the case become a clear legal event rather than a sense of relief created by the return of the money.
Repayment can resolve the financial concern that prompted a complaint, but the criminal proceedings require separate attention. The parties should ensure that their settlement is properly documented and established before the competent authority. They should also confirm the decision issued and understand its effect at that stage of the case. Seeking advice from a criminal lawyer in Dubai can help them complete the process and accurately understand the outcome.
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