Dubai Court orders Dh1.43 million payment for unpaid chicken imports

Dubai: The Dubai Court of First Instance has ordered a food importing company to pay $390,503.47 (Dh1.43 million) to an overseas supplier for frozen chicken products after finding that the company failed to settle outstanding payments for imported shipments.

The court also ordered the importer to pay legal interest at a rate of 5 per cent per annum from February 26, 2026, until full payment is made, in addition to court fees, expenses and Dh1,000 in legal representation costs.

According to court records, the supplier filed the lawsuit on February 26, 2026, seeking recovery of unpaid amounts arising from the sale and shipment of food products, specifically frozen chicken. The claimant argued that the defendant company had imported the goods but failed to pay the outstanding balance despite repeated demands for payment. The unpaid amount totalled $390,503.47, equivalent to approximately Dh1,433,147.

To support its claim, the supplier submitted commercial invoices, shipping documents, sales order confirmations and a statement of account extracted from its commercial records. It also presented translated copies of correspondence exchanged between the parties. The documents included communications in which the importing company acknowledged delays in settling the outstanding amounts owed to the supplier.

During the proceedings, the claimant appeared through legal counsel, while the defendant company failed to attend the hearings or submit any defence. The court noted that the defendant did not provide evidence showing that the debt had been paid and did not challenge the authenticity or validity of the documents submitted by the claimant.

In its judgment, the court referred to provisions of the UAE Law of evidence, which establish that signed private documents constitute full proof of the declarations contained within them unless the signatory proves otherwise. The court also cited principles established by the Dubai Court of Cassation confirming that trial courts have the authority to assess documentary evidence, evaluate correspondence exchanged between parties and determine the existence and extent of indebtedness.

After reviewing the commercial invoices, shipping documents, sales confirmations, account statements and correspondence, the court concluded that the defendant had imported the frozen chicken products and remained liable for the outstanding amount claimed by the supplier.

The claimant had requested default interest at a rate of 9 per cent per year. However, the court referred to a previous ruling by the Dubai Court of Cassation, which held that the historically applied 9 per cent rate no longer reflected prevailing economic conditions and banking interest rates. In the absence of an agreement between the parties specifying a different rate, the court applied legal interest of 5 per cent annually.

The court found that the debt was fixed, due and payable and that the defendant had delayed payment without legal justification. Accordingly, it ordered the company to pay the outstanding sum of $390,503.47, or its equivalent in UAE dirhams, together with legal interest calculated from the date the lawsuit was filed until full settlement. The court further ordered the defendant to bear all court fees, expenses and legal representation costs.