Dubai Court Orders Companies to Pay Dh57.38M in Cargo Clearance Dispute

Dubai Commercial Court has ordered two companies to jointly pay up to Dh57.38 million to a shipping and customs clearance firm in a dispute over unpaid international cargo clearance services. The court rejected additional claims for legal and supplementary interest.

The claimant, a company providing shipping and cargo clearance services, had sought Dh89.5 million, including principal debt and interest. The dispute arose from services provided in Dubai and Ajman, for which the defendants allegedly failed to pay despite repeated assurances.

In February 2023, the parties signed an irrevocable acknowledgment of debt, recognizing $15.57 million (about Dh57.38 million) due, with repayment scheduled by February 2025. When the defendants failed to pay, the claimant filed a lawsuit.

During proceedings, a three-member accounting expert committee was appointed to reconcile accounts. However, the claimant did not pay the Dh240,000 expert fee, forfeiting the right to rely on the committee’s preliminary findings.

The court confirmed the acknowledgment of debt as binding evidence, noting the defendants provided no proof of settlement. The court ordered payment of the principal debt, but rejected the claimant’s request for 2 per cent monthly and supplementary interest, citing UAE Commercial Transactions Law restrictions on compound interest.

The defendants were also directed to pay their share of court fees and Dh1,000 in legal costs.

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