Al Ain court annuls sale of unowned number plate, orders refund

Al Ain: A young man who accepted a down payment to sell a distinctive vehicle number plate he did not legally own has been ordered by an Al Ain court to refund the money after the contract was ruled invalid.

The Al Ain Court for Civil, Commercial and Administrative Claims found that the seller had no legal title to the number plate and therefore had no right to sell it, rendering the agreement void. The court ordered him to return Dh20,000 to the buyer but rejected claims for additional compensation.

According to Emarat Al Youm, the buyer filed the lawsuit after agreeing to purchase the number plate for Dh25,000, paying an advance of Dh20,000 at the time of signing. The remaining amount was to be paid once the plate was officially transferred.

The seller later failed to complete the transfer and did not return the advance, prompting the buyer to demand Dh150,000 under a penalty clause in the contract. The buyer told the court the advance was handed over in the presence of a witness and requested either the plate be transferred or the advance refunded along with the contractual penalty.

The seller denied liability, claiming he believed the plate would be withdrawn from expatriate ownership and auctioned publicly. He acknowledged receiving part of the payment and expressed willingness to return it but admitted he had not purchased the plate from the traffic authority and did not hold legal ownership at the time of the agreement.

The court noted that neither party provided evidence proving the seller legally owned the plate according to traffic authority procedures. As a result, the contract was declared null and void, requiring both parties to be restored to their original positions.

The court ordered the seller to repay the Dh20,000 advance and cover a portion of legal costs while dismissing all other claims, including the penalty compensation.