Dubai Importer Ordered to Pay Dh1.43M Over Unpaid Frozen Chicken Shipments

The Dubai Court of First Instance has ordered a food importing company to pay $390,503.47 (Dh1.43 million) to an overseas supplier after finding that it failed to settle invoices for multiple shipments of frozen chicken products.

The ruling also requires the importer to pay legal interest at 5 per cent per annum from February 26, 2026, until full payment is made, along with court fees, expenses and Dh1,000 in legal representation costs.

According to court records, the dispute arose after the supplier filed a lawsuit on February 26, 2026, seeking recovery of outstanding payments related to the sale and shipment of frozen food products. The claimant argued that the defendant had received the shipments but failed to clear the dues despite repeated demands for payment. The total unpaid amount stood at $390,503.47, equivalent to approximately Dh1,433,147.

To substantiate its claim, the supplier submitted commercial invoices, shipping documents, sales order confirmations and statements of account drawn from its business records. It also produced translated correspondence exchanged between the two parties, including messages in which the importing company acknowledged delays in settling the outstanding balance.

During proceedings, the claimant was represented by legal counsel, while the defendant company did not appear in court or submit any defence. The court noted that the defendant failed to provide any evidence of payment or challenge the authenticity of the documents presented.

In its judgment, the court referred to provisions of the UAE Law of Evidence, which state that signed private documents constitute full proof of the declarations contained within them unless proven otherwise. It also cited established principles of the Dubai Court of Cassation, affirming that trial courts have the authority to assess documentary evidence, correspondence between parties and the existence and extent of indebtedness.

After reviewing invoices, shipping records, sales confirmations, account statements and correspondence, the court concluded that the defendant had received the frozen chicken shipments and remained liable for the outstanding amount claimed.

The claimant had originally sought default interest at 9 per cent per annum. However, the court referred to a prior ruling by the Dubai Court of Cassation, which held that the previously applied 9 per cent rate no longer reflected prevailing economic conditions or banking interest rates. In the absence of any contractual agreement specifying a different rate, the court applied legal interest at 5 per cent annually.

The court further held that the debt was fixed, due and payable, and that the defendant had unjustifiably delayed payment. It therefore ordered the company to pay the outstanding sum, together with interest calculated from the date of filing the case until full settlement. The defendant was also directed to bear all court fees, expenses and legal representation costs.

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