Dubai Court Orders Dh13,000 Refund and Damages in Failed Holiday Package Case

Dubai civil court has ordered the cancellation of a holiday package contract and directed a company to refund a client Dh8,268.20 and pay Dh5,000 in compensation, after finding it had breached its obligations and misled the buyer with false assurances.

The ruling, issued in absentia after the company failed to appear at the final hearing, held that the claimant had been induced into purchasing the package in August 2025 under deceptive circumstances. According to court records, the client was contacted by company representatives claiming he had won a raffle prize and was invited to a hotel promotion, where he was persuaded to purchase a package priced at Dh8,550.

The package promised hotel stays, annual holidays, airport transfers, guided tours and complimentary airline ticket vouchers. The claimant said his primary aim was to arrange travel for his mother to visit the UAE.

He paid the full amount on August 14, 2025, by credit card, after being assured the transaction would be processed under a zero per cent interest instalment plan. The court found, however, that the company later applied a 0.70 per cent monthly interest charge, resulting in additional costs of Dh718.20, contrary to those assurances.

After payment, the claimant encountered repeated delays and a lack of response when attempting to make bookings or redeem the benefits. Apart from a partial refund of Dh1,000, none of the agreed services were provided, and all requests remained pending.

Despite repeated follow-ups and visits to the company’s office, no action was taken. The firm instead claimed approvals were pending from a United Kingdom office—an explanation the court found inconsistent given its status as a Dubai-based entity.

The claimant subsequently lodged a complaint with the Dubai Department of Economy and Tourism, which confirmed the company had been shut down for legal violations, ruling out administrative resolution.

A court-appointed expert found that the claimant had fulfilled his contractual obligations in full, while the company failed to deliver any services or show evidence of attempts to do so. The expert assessed the direct financial loss at Dh8,268.20, leaving additional claims, including translation costs and moral damages, to the court.

In its reasoning, the court emphasised that contracts must be honoured in good faith and that failure by one party entitles the other to seek termination and restitution. It concluded that the company’s conduct constituted a clear breach, justifying rescission and repayment.

The court also found that the claimant suffered financial loss and emotional distress, including missed opportunities, legal expenses and prolonged uncertainty. It awarded Dh5,000 as lump-sum compensation.

The court ordered the termination of the August 14, 2025 contract, the refund of Dh8,268.20, payment of Dh5,000 in damages, and directed the company to bear all court fees and expenses.

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