The case involves unpaid international cargo clearance services in Dubai and Ajman.
The Dubai Commercial Court has ruled that two companies must jointly pay up to Dh57.38 million to a shipping and customs clearance firm in a commercial dispute over unpaid international cargo clearance services, while dismissing additional claims for legal and supplementary interest.
Case details show that the claimant, a company specialising in shipping and cargo clearance, had initially filed a lawsuit seeking Dh89.5 million, covering the principal debt along with legal and supplementary interest, against the two companies.
The dispute stemmed from commercial transactions between the parties involving international cargo clearance services conducted in Dubai and Ajman.
The claimant told the court that it had fully fulfilled its contractual obligations and issued multiple invoices in 2022 for clearance and transportation services. However, the defendants allegedly failed to pay the outstanding amounts despite repeated assurances to settle.
The company also noted that the parties later signed an irrevocable acknowledgment of debt and undertaking in February 2023, in which the defendants acknowledged owing $15.57 million, with repayment scheduled by February 2025.
Court records indicate that the defendants failed to repay the amount after the deadline, despite nearly 11 months having passed. This led the claimant to file a lawsuit seeking recovery of the outstanding sum along with accrued interest.
During the proceedings, the court ordered the formation of a three-member accounting expert committee to examine the financial dealings between the parties and reconcile the accounts. However, the claimant did not deposit the Dh240,000 expert fee required to proceed, despite being granted additional time by the court.
Consequently, the court ruled that the claimant had forfeited its right to rely on the preliminary decision appointing the expert committee, in line with the UAE Evidence Law.
In its judgment, the court affirmed that the acknowledgment of debt signed by both parties is a valid private document and constitutes binding evidence against the signatories unless proven otherwise. The court also noted that the defendants did not present any evidence or defence demonstrating that the debt had been settled, despite being legally notified of the case.
The court ordered the two companies to jointly pay $15.57 million, or its equivalent in UAE dirhams, capped at Dh57.38 million, in favour of the claimant company.
However, the court rejected the claimant’s request to impose additional legal interest at 2% per month and supplementary interest, noting that part of these claims amounted to compound interest, which is prohibited under the UAE Commercial Transactions Law. The law does not allow interest to be calculated on accumulated interest.
The court also highlighted that the 0.5% monthly interest stipulated in the acknowledgment of debt had already been included in the principal amount agreed by the parties. Furthermore, the claimant did not submit the original invoices related to the commercial transactions to fully substantiate the claim.
Based on these findings, the court ordered the defendants to pay the principal debt, not exceeding Dh57.38 million, rejected the claims for additional interest, and directed the defendants to bear the appropriate share of court fees and expenses, along with Dh1,000 in legal costs.
