The Dubai Court of First Instance has ordered a food importing company to pay $390,503.47 (approximately Dh1.43 million) to an overseas supplier after ruling that the company failed to settle payments for shipments of frozen chicken products.
In addition to the principal amount, the court imposed legal interest at a rate of 5 percent per year starting from February 26, 2026, until full repayment is completed. The ruling also requires the company to cover court fees, associated expenses, and Dh1,000 in legal representation costs.
Court documents showed that the dispute arose after the supplier delivered multiple shipments of frozen chicken that remained unpaid despite repeated requests for settlement. The supplier subsequently initiated legal proceedings to recover the outstanding balance.
As part of the case, the claimant presented commercial invoices, shipping records, sales confirmations, account statements, and translated correspondence between the two parties to support its claim. The documentation was submitted to demonstrate that the goods had been delivered and payment obligations had not been fulfilled.
According to court records, the importing company had acknowledged delays in meeting its financial obligations. However, it did not attend court hearings or submit a formal defense during the proceedings. The court also noted that the defendant did not provide evidence showing that the debt had been settled, nor did it challenge the authenticity of the documents submitted by the supplier.
In its ruling, the court referenced provisions of UAE evidence law, which recognize signed commercial documents as valid proof unless they are successfully disputed by the relevant party. Based on the evidence presented, the court determined that the goods had been received and that the payment obligation remained outstanding.
The supplier had requested interest at an annual rate of 9 percent. However, the court applied a reduced rate of 5 percent, citing judicial precedent that the previously applied 9 percent rate no longer reflects current economic and financial conditions.
The court concluded that the debt was due and payable and that payment had been delayed without legal justification. The importer was therefore ordered to settle the full outstanding amount along with applicable interest and legal costs, bringing the dispute to a conclusion under the court’s judgment.
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