The Dubai Commercial Court has issued a ruling requiring a company to pay a supplier Dhs1.083 million for goods delivered under 11 tax invoices. In addition to the principal amount, the court mandated that the company pay legal interest of 5 percent annually, calculated from the due date of each individual invoice until the total balance is settled. This decision follows a lawsuit initiated by the supplier, who sought to recover financial dues stemming from commercial transactions conducted on behalf of the defendant.
According to the case files, the supplier had fulfilled all contractual obligations by delivering goods based on formal purchase orders. Despite the issuance of tax invoices and the provision of delivery and receipt notices, the defendant failed to remit payment despite repeated requests. An expert committee appointed by the court to investigate the dispute confirmed the existence of a valid commercial relationship between the two parties. The committee’s report verified that the plaintiff had successfully delivered the goods, noting that the defendant or its authorized representatives had accepted the shipments without registering any objections or reservations.
The expert findings further established that no documentation existed to prove that the goods had been paid for or that any settlement had been reached between the parties. Consequently, the court affirmed that the defendant remained liable for the full value of the supplies. Emphasizing that a contract serves as the law governing the parties involved, the court noted that supply agreements mandate the delivery of goods by the supplier and the subsequent payment by the buyer. Failure to settle the agreed-upon price renders the debtor liable for the outstanding amount.
While the court ruled in favor of the supplier regarding the primary debt, it dismissed a separate claim for Dhs200,000 in additional compensation. The judges determined that the plaintiff failed to provide sufficient evidence to substantiate the nature of the alleged harm. Furthermore, the submitted documentation lacked the necessary technical or accounting data required to quantify the claimed damages. In its final judgment, the court ordered both parties to share the incurred legal expenses and attorney fees, while dismissing all other requests brought before the bench.
The court, however, rejected a request for additional compensation of Dhs200,000 due to the lack of proof of harm.
Source: Gulf Today
