Dubai – Mubasher: Habib Al Mulla, the lawyer of the beleaguered Abraaj founder Arif Naqvi, said that he plans to file a defence suit by the end of this week proving that Air Arabia's complaint was baseless. 

Al Mulla, the executive chairman of Baker McKenzie Habib Al Mulla, noted that the lawsuit by Air Arabia, the UAE's only listed airline, was surprising as the two parties have been in talks for reaching an amicable settlement.

The move of the Emirati carrier “is an abuse of the legal system and shows bad faith on part of Air Arabia,” he added. 

“We will vigorously defend Mr Naqvi and plan to submit a full defence to the Prosecution to prove that this criminal complaint has no substance whatsoever,” Al Mulla said.

Last week, the Sharjah-based airline revealed that it had filed a misdemeanour case against Naqvi, becoming the first publicly-listed company to start legal proceedings against the Abraaj founder in relation to the collapse of the Dubai-based private equity firm.

“The liability in question is Abraaj’s and not Mr Naqvi’s. Mr Naqvi was merely a guarantor. His actions in this matter were for the benefit of Abraaj,” Al Mulla added.

The company announced an AED 1.23 billion ($336 million) exposure to Abraaj and funds managed by the company, once one of the developing world’s influential investors with close to $14bn of assets under management, in July 2018.