Dubai Civil Court Annuls Luxury Car Deal, Orders Dh600,000 Refund

A Dubai civil court has nullified the sale of a luxury vehicle and ordered the seller to refund Dh600,000 to the buyer after it was established that the car was internationally wanted by Interpol, rendering the transaction unlawful.

The ruling stemmed from a civil lawsuit filed by an Arab national who sought to recover Dh720,000, along with court fees and legal expenses, after purchasing a vehicle that was later seized due to an international alert, depriving him of possession and use.

Court records show that in October this year, the claimant bought a used 2023 Mercedes-Benz from a luxury car dealership under a sales contract valued at Dh670,000. He paid Dh200,000 upfront, with the remaining amount financed through a bank that registered the vehicle as collateral.

After taking possession of the car and approaching Dubai’s Roads and Transport Authority to complete registration, the buyer was notified that the vehicle was listed as wanted by Interpol and subject to a restriction preventing its sale or registration. Police later confirmed that the car was subject to an international circular and confiscated it.

The claimant told the court that he had acted in good faith, met all contractual obligations, and incurred additional expenses of about Dh50,000. Despite the seizure, the financing bank continued to deduct monthly installments, causing him financial and moral distress. He sought annulment of the contract, reimbursement of amounts paid and compensation for damages.

After reviewing the evidence, the court found that the vehicle had been stolen and internationally wanted before the sales contract was signed, making it illegal to trade. This, the court held, rendered the contract void due to the absence of a lawful subject, irrespective of whether the seller was aware of the vehicle’s status.

The court ordered the defendant company to refund Dh600,000 to the claimant and to pay court fees and expenses, while dismissing all other claims.

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