Court cancels car lease, orders Dh87,383 payment for unpaid rent

Abu Dhabi: The Abu Dhabi Commercial Court has ordered a young man to pay Dh87,383 to a car rental company after finding that he failed to meet his financial obligations under a long-term vehicle lease agreement.

In its ruling, the Court of First Instance also ordered the termination of the lease contract, required the defendant to return the vehicle to the rental company, and directed that all traffic violations and black points incurred during his use of the car be transferred to his traffic record.

The case, according to Emarat Al Youm, stemmed from a lawsuit filed by the car rental company, which sought the cancellation of a three-year long-term lease agreement signed in November 2022, the return of the vehicle free of defects, accidents and traffic violations, and the transfer of all black points linked to the car to the defendant’s traffic code. 

The company also demanded payment of outstanding rental fees, traffic fines and toll charges, in addition to legal interest and monthly compensation until the vehicle’s return.

According to the court’s reasoning, an advisory expert appointed by the court confirmed that the defendant had agreed to pay a monthly rental fee of Dh3,999, inclusive of VAT, over the duration of the contract. 

The expert report showed that the defendant failed to pay the monthly rent from the time he took possession of the vehicle until the end of September 2025, in addition to accumulating traffic fines and toll charges, while the vehicle remained in his possession.

The court found that the defendant had breached his contractual obligations, warranting the termination of the lease.

While the rental company had initially claimed Dh92,362, the court determined, based on the lease agreement and the expert report, that the confirmed amount owed totalled Dh87,383. 

This included Dh71,970 in unpaid rental fees, Dh12,633 in traffic fines, Dh2,652 in Salik toll charges, and Dh128 in Darb fees.

The court noted that the defendant failed to present any substantive defence or legal evidence to dispute the claimed amounts, despite being given the opportunity to do so.

In its final judgment, the court ordered the defendant to pay the confirmed amount, along with legal interest of 3 per cent per year from the date the lawsuit was filed until full settlement, capped at the principal amount. 

He was also ordered to pay monthly compensation of Dh3,999 from 29 September 2025 until the vehicle is returned, as well as court fees and expert costs. All other claims were dismissed.