Dubai court orders 2 firms to pay Dhs57.38m to a shipping and clearance company

The Commercial Court in Dubai ordered two companies to pay the equivalent of Dhs57.38 million to a company specialising in shipping and clearance, while rejecting claims for legal interest.

In detail, a shipping and clearance services company filed a lawsuit before the Commercial Court of First Instance in Dubai against two companies operating in the investment sector, demanding that they jointly pay Dhs89.5 million based on commercial dealings between the parties related to international goods clearance services in the emirates of Dubai and Ajman.

The plaintiff company clarified that it had fully fulfilled its contractual obligations, based on invoices in 2022 for clearance and transportation services, but the two defendant companies did not pay the dues.

The plaintiff added that they later signed an irrevocable acknowledgment and undertaking in February 2023, acknowledging a debt of $15.57 million, to be paid within a deadline ending in February 2025.

According to the lawsuit documents, the two companies did not adhere to the payment after the specified deadline and after about 11 months, which prompted the company to resort to the judiciary to claim the amount and the resulting interest.

The court appointed a tripartite accounting expert committee to examine the financial relationship between the parties and settle accounts.

However, the plaintiff company did not pay the expert's fee, which was set at approximately Dhs240,000, despite being granted a deadline for it, which resulted in the forfeiture of its right to adhere to the preliminary ruling to appoint an expert.

The court clarified that the acknowledgment document signed between the parties is considered an informal document proving the defendants' indebtedness for the acknowledged debt unless proved otherwise, especially since they did not present any defence or evidence of payment despite being legally notified of the lawsuit.

The court ordered the two defendant companies to jointly pay $15.57 million or its equivalent in UAE dirhams to the plaintiff company, and refused claims to pay legal interest. The court also ordered them to pay fees, expenses, and legal costs.