Questions & Answers
Recourse for unpaid dues in commercial transactions
I am a contractor and my client has pending payments with him. I have received 5 out of 13 payments I sent him.
All the 13 payments are late. All the payments have been signed and approved and he gave me a payment certificate to confirm due date of payment but until this date, it is not paid.
Each certificate is delayed out of the 8 balance. They range in delay from 2 weeks to 6 months. What are my rights and the damages I can claim as per the UAE law?
Please note that I had to close down my business because I can't afford to run it due to the late payments.
Good morning,
As per our understanding, you have unpaid dues from your clients.
As per UAE commercial law, you are entitled to claim interest on the unpaid dues, along with the outstanding payments. Such interest is calculated from the date the payment was due.
We represent various other contractors in similar cases and would be able to assist you to protect your rights and recover your dues.
You can contact us directly at legal@raalcuae.com should you decide to take this further.
Sincerely,
RAALC
Dear Sir,
Normally in all such type of cases, if the Dispute Resolution clause refers to Dubai Court, one needs to file a civil suit for recovery of pending dues along with interest (9% yearly calculated from the date of filing the case).
If it’s arbitration, one needs to follow meticulously the agreement relating to the Dispute Resolution clause and file a claim before the arbitrators for an award.
However, in both these circumstances, one needs to be sure that post getting the judgement/award, there is something to execute the property, the bank account of the defendant.
Regarding damages, if the agreement provides for damages in case of delay, that needs to be incorporated in the case/claim. If it does not, one needs to calculate the same based on the loss suffered.
Please feel free to contact us for a free consultation at 056 1060369 or jana@alketbilaw.com
Kind regards,
Khalifa Bin Huwaidan Advocates
