Dubai Court orders company to pay Dhs994,000 to equipment supplier

A trading company failed to pay approximately Dhs994,000 owed to a supplier of equipment, supplies and spare parts for an electric pump system despite acknowledging the debt and proposing a repayment plan.

Dubai Commercial Court ordered the company to settle the outstanding claims plus 5 per cent interest until full payment is made.

The case stemmed from commercial dealings between the supplier and the company based on two purchase orders placed in December 2022 and March 2023 for the supply of equipment, materials and spare parts.

However, the company failed to pay the full value of these supplies, prompting the supplier to seek legal recourse to claim what is owed.

The case documents revealed that the total debt amounted to $270,430, equivalent to Dhs993,830. The filings also included balance confirmation letters, stamped and signed by the company in April 2025, which served as an acknowledgment of the amounts owed.

The documents also indicated a subsequent agreement on a repayment plan dated July 2025, under which the company pledged to pay at least 50 per cent of the debt by the end of December of that same year and to settle the remaining balance by the end of March 2026. The amounts due, however, were not paid in accordance with the agreed-upon schedule.

The court appointed an accounting expert to examine the documents and accounts between the parties. The expert’s report concluded that the company owed the supplier a sum of $270,430 or its equivalent in dirhams, noting that this amount included late-payment penalties calculated up to May 1, 2025.