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Dubai Court orders company to pay Dh1.544 million debt to packaging supplier

A Dubai commercial court has ordered a company to settle Dh1.544 million in unpaid obligations owed to a packaging supplier, in addition to 5% delay interest, legal fees, and court expenses. The judgment came after the court determined that the company had failed to pay for packaging materials delivered through multiple verified commercial transactions.

Court documents revealed that the dispute stemmed from continuous business interactions between both parties. The supplier had regularly provided packaging materials essential to the company’s operations, and the value of the delivered goods progressively accumulated. These amounts were supported by detailed account statements, purchase orders, invoices, and even a written acknowledgment from the debtor company confirming the full outstanding balance.

Despite the comprehensive documentation proving the debt, the company did not initiate payment, prompting the supplier to file a lawsuit to recover the amount. The court examined submissions from both sides and assigned a financial expert to evaluate the evidence and verify the accuracy of the claims.

The expert’s report validated that the unpaid sum represented the genuine value of materials used in the company’s glass manufacturing operations and confirmed that the amount remained unsettled. The court also rejected the defendant’s objection questioning the validity of the case, stating that the commercial relationship between the parties made the argument inapplicable. Relying on the documents and expert findings, the court ordered the company to pay the full amount with interest until settlement, along with all associated fees and costs.

Staff Report

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