Sharjah court orders Dh63.8m refund plus interest in gas supply dispute.
The Sharjah Court has ordered a company to refund Dh63.8 million after ruling that it breached a contract to supply 41,000 metric tonnes of liquefied petroleum gas (LPG). The company failed to deliver the shipment within the agreed deadline or provide the required shipping documents.
The court cancelled the sales contract and ordered the company to repay Dh63,819,327.81 in payments received towards the purchase price, plus 5 per cent interest from the date the lawsuit was filed until the amount is fully settled.
The dispute centred on an agreement under which the defendant was to supply 41,000 metric tonnes of LPG to the claimant for Dh112,214,155.63.
Under the contract, payments were to be made in instalments, including advance payments, further payments upon receipt of the bills of lading in the UAE, and a final instalment upon delivery of the goods at the designated port.
However, the defendant failed to deliver the shipment within the agreed timeframe and did not provide the shipping documents required to transport the LPG to the UAE. The claimant subsequently approached the court, seeking termination of the contract and recovery of the money paid.
Lawyer Marwa Al Suwaidi, representing the claimant company, argued that the failure to meet the delivery deadline entitled her client to terminate the agreement and seek compensation for the resulting losses.
In support of the claim, Al Suwaidi presented evidence that her client had entered into a separate sales agreement with another company for the same petroleum product covered by the original contract. The subsequent agreement included a penalty clause for delayed delivery.
After reviewing the evidence, the court found that the defendant had breached its contractual obligations by failing to supply the agreed quantity of LPG within the stipulated timeframe and provide the required shipping documents.
The court therefore cancelled the contract and ordered the defendant to refund the full amount received from the claimant towards the purchase price.
The refund was set at Dh63,819,327.81, with interest at 5 per cent accruing from the date the lawsuit was filed until full payment is made.
