11 August 2026 00:08 AM | Last updated: 11 August 00:09 2026
Dubai Court Orders Company to Pay Supplier Over AED 1 Million
The Commercial Court in Dubai has ordered a company to pay a total of AED 1,083,075 to a supplier for goods delivered under 11 tax invoices, along with an annual legal interest of 5% from the due dates until the amount is fully settled. However, the court declined an additional compensation request of AED 200,000 due to the lack of established damages.
Case Background
The case arose when a supplier sought their financial dues from a defendant company following the issuance of purchase orders. The supplier subsequently delivered the goods, issuing related tax invoices and delivery notes. Despite repeated requests, the purchasing company failed to settle the outstanding amounts.
Expert Committee Findings
A report from a designated expert committee confirmed that the relationship between the parties was commercial. The supplier had fulfilled all obligations by delivering goods as per the 11 tax invoices, amounting to AED 1,083,075 including Value Added Tax (VAT). The report further established that the defendant had received the goods without noting any objections or reservations.
Legal Obligations Affirmed
The committee’s findings indicated that there were no documents proving that the purchase price had been paid or that any offsetting transactions had taken place. Consequently, the court found the defendant liable for the full amount owed. The court emphasized that contracts are binding, and obligations arising from supply contracts require the supplier to deliver goods and the buyer to pay their due amounts. Failure to pay creates a liability for the debtor regarding the outstanding sum.
Interest Calculation and Denied Compensation
The court ruled that interest would be calculated at 5% per annum from the date of each invoice’s due date until full payment was made. This decision stems from the fact that the debt was clearly defined and the delay in payment by the defendant was verified.
The court also dismissed the supplier’s claim for AED 200,000 in damages, citing the absence of evidence demonstrating the nature and scope of the claimed damages. No technical or accounting documents were presented to allow for an assessment of the alleged harm. Additionally, the court ordered that both parties would bear a portion of the legal costs and attorney fees while rejecting any other claims.