A Dubai civil court has annulled a luxury vehicle sales contract and ordered a car dealership to refund Dh600,000 to a buyer after it was proven that the vehicle was internationally wanted by Interpol, making the transaction unlawful.
The case stemmed from a lawsuit filed by an Arab national who purchased a used 2023 Mercedes-Benz from a luxury car dealer under a contract valued at Dh670,000. He paid Dh200,000 upfront, with the remaining amount financed through a bank that registered the car as collateral. Shortly after taking possession, the buyer was informed by Dubai’s Roads and Transport Authority that the vehicle could not be registered because it was subject to an international alert prohibiting its sale.
Police later confirmed that the car had been flagged under an international circular and seized, depriving the buyer of ownership and use. Despite this, the financing bank continued deducting monthly instalments, causing the buyer financial and emotional distress. He sought the cancellation of the contract, a refund of all amounts paid, and compensation for additional losses.
After reviewing the evidence, the court ruled that the vehicle had been stolen and was internationally wanted even before the sales contract was signed. This rendered the subject of the contract illegal, leading to its nullification regardless of whether the selling company acted in good faith or was unaware of the vehicle’s status. The court ordered the dealership to refund Dh600,000 and cover court fees and expenses, while dismissing all other claims.
