Dubai court orders luxury car firm to pay Dhs40,000 to client

Dubai: A Dubai court has ordered a company to pay Dh40,000 to a customer, along with 5 per cent annual interest from the date of filing the case until full settlement, and to bear all court fees and expenses.

The ruling was issued by the Court of First Instance in a civil dispute involving a customer and a company operating in the luxury passenger transport sector. The judgment was issued in the absence of the defendant company, which failed to appear in court proceedings despite being legally notified.

According to court records, the case stemmed from an agreement in which the customer intended to purchase a luxury vehicle 2023 Lexus bearing a specific registration plate — from the company. The customer paid a total of Dh40,000 through a series of documented payments accepted by the company.

These included a down payment of Dh35,000, followed by two instalments of Dh3,500 and Dh1,500 respectively. The payments were supported by stamped receipts and invoices issued by the company, confirming acceptance of the amounts toward the vehicle purchase.

However, the dispute arose after the company recovered the vehicle. When the customer demanded a refund of the amounts paid, the company refused to repay the outstanding sum without providing any legal justification.

The customer subsequently filed a lawsuit seeking recovery of the full amount paid, along with legal interest and compensation for costs.

During the proceedings, the customer appeared before the case management office and later before the court, requesting a ruling in his favour. The defendant company did not attend any of the hearings and did not submit a defence or evidence to contest the claim.

The court noted that under UAE law, the burden of proof lies initially with the claimant to establish the right being claimed, after which the opposing party must refute it. In this case, the court found that the customer had successfully proven the company’s liability through documentary evidence, including receipts and invoices.

As the company failed to present any defence or provide evidence of settlement, the court determined that the debt remained due and payable.

On the issue of interest, the court clarified that delay interest is considered compensation for harm caused by a debtor’s failure to meet obligations on time. In line with established judicial principles, the court awarded interest at a rate of 5 per cent annually, noting that the claimed amount was fixed and not subject to judicial discretion.

The court ultimately ruled in favour of the customer, ordering the company to repay the full amount, along with interest and legal costs.