Company obliged to pay another Dhs1.54 million for late payment

A company refused to pay Dhs1,544,000 (approximately Dhs1.54 ,million) for packaging materials it purchased from a specialised supplier, prompting the supplier to take the dispute to the Dubai Commercial Court of First Instance, which obligated the company to pay the full amount plus 5% interest for late payment, in addition to fees, expenses and lawyer’s fees.

The details of the case date back to an earlier time when the supplier provided the company with packaging materials and the value of the supplied materials accumulated in the company's account according to the statements, purchase orders and official invoices, in addition to a statement issued by the defendant company acknowledging the full amount of the claim owed to the supplier.

According to the case file, the company did not pay the needed amount, prompting the supplier to take legal action and file a lawsuit to claim its financial rights.

The court heard the arguments of both parties and appointed a financial expert to examine the case.

In his report, the expert confirmed that the amount claimed actually represented the value of the packaging materials imported by the company for use in its commercial activity of manufacturing glass products, and that the value of the debt was unpaid.

The court found that the relationship between the parties was a mutual commercial one and, based on the case documents and the expert's report, the court ordered the company to pay the institution Dhs1,544,000, plus 5% interest for late payment from the date of the claim until full payment, as well as fees, expenses and lawyer’s fees. The court rejected all other claims, including the request for expedited enforcement.