The Dubai Commercial Court has issued a ruling requiring a local company to pay a supplier Dhs1.083 million, representing the total value of goods delivered under 11 tax invoices. In addition to the principal sum, the court mandated the payment of legal interest at a rate of 5 per cent annually, calculated from the due date of each individual invoice until the debt is settled in full. This legal action was initiated after the supplier filed a lawsuit seeking to recover financial dues resulting from commercial transactions conducted on behalf of the defendant company.
According to the case records, the defendant had issued formal purchase orders, which the plaintiff fulfilled by delivering the goods and providing the necessary tax invoices along with delivery and receipt documentation. Despite these efforts and repeated demands for payment, the company failed to settle its financial obligations. An expert committee appointed by the court reviewed the case and confirmed the existence of a commercial relationship between the two parties. The committee verified that the plaintiff had fully satisfied its contractual obligations, noting that the defendant or its representative had received the goods without registering any reservations or objections.
The expert report further concluded that there was no evidence of payment or any settlement agreement regarding the outstanding balance, thereby confirming the defendant’s liability for the full amount. In its judgment, the court emphasized that the contract serves as the law for the contracting parties. It stated that obligations arising from supply contracts require the supplier to deliver goods in accordance with the agreement and the buyer to pay the agreed value, noting that failure to pay the price entails the debtor’s liability for the amount due.
Meanwhile, the court rejected the supplier’s request to get Dhs200,000 compensation as he did not provide anything proving the nature of the harm he had befallen and the papers submitted did not include documents or technical and accounting data that would enable the claimed damage to be estimated. Consequently, the court dismissed all other requests and ordered both parties to share the burden of the incurred legal expenses and lawyer’s fees.
The court, however, rejected a request for additional compensation of Dhs200,000 due to the lack of proof of harm.