Q: Respected Sir / Ma'am, I am an IT service provider. I got a project from one of the companies in Abu Dhabi to perform a System Implementation. I have completed the project and have raised the invoice for the same, but the customer is not paying the amount. It amounts to about 30000 USD. I am calling for a Steering Committee meeting as per the contract/proposal terms to resolve the issue of not paying me. The IT team, to whom I am reporting is just not letting the Steering Committee meeting to happen. I have other projects running in parallel with the same client. I have issued a "Credit Hold" and stopped all activities with proper notice and have all details on email communication. Still, they are not calling for a meeting / trying to resolve the issue... What are my options to recover the amount? If at all I have to hire a lawyer, what will be the costs for the same? Would appreciate your advice/recommendations greatly. Thanks and regards, Raj

Q: My firm (based in the UK) is owed $57,500 for providing materials and event management services for a Dubai-based business called International Premier Tennis League. They have failed to pay my invoice or any of the individual skilled craftsmen and technicians I recommended they hired to deliver the events which we delivered in December 2016. What I'd like to do is recover my money and possibly make sure that the business behaviour of the IPTL management team is not repeated (it must be a crime to commit business services to a project without ever having the means to pay for it). Any help or advice appreciated, please.

Q: We have an outstanding invoice with a company in the UAE who refuses to pay. Over the past 3 years, they kept saying they will start making payments on a monthly basis, however, nothing happened. We have all the communications detailing their lack of payments. The sum is about $24,000. Can you advise on the process and cost of taking this claim forward? Regards

Q: We received an LPO to execute a project with a specific material recommended by the client who gave us an LPO but now after shipping the materials to UAE, they are not accepting the material and they are asking for a change of material. From our side, it is impossible to return the material as we have made payments and we cannot send it back. We are holding the materials for almost 3 months now in a warehouse and we are totally stuck. We have shipped the material only with written approval and confirmation from the client and there is no cancellation clause stated in the LPO as well. The material contributes to 85% of the project value. What would be the best thing to do in this scenario?

Q: We are a startup. We had been awarded a project of x value from a client. The client specified the material to be used for a project and to provide a competitive quote, which we did after contacting the supplier. We got the deal done for a really good price and bagged the project. After the LPO award, we started with the execution and did a mockup (completed 15% of work). After taking the client’s approval again in writing, we went ahead & placed the order. It’s been 3 months and still, the client hasn’t made any payments, now they are saying that the material is wrong. They want a replacement. The supplier has shipped the material to the warehouse in UAE since 3 months and we have paid 40% to the supplier. The supplier has paid 100% to the manufacturer, we have issued the supplier an LPO. Now, the supplier has warned us about taking legal action against us. The client we are dealing with is a big client, how can we take this further? Can we claim the legal fees in court?

Q: Dear sir/madam, We were contacted by a large firm in the UAE. We agreed, put a contract, and got an LPO from a client. It was a 6-week project. We started & followed all the processes, got approvals for each task as per the approved project plan, did revisions they requested. For a few items, we needed the client's feedback or inputs but they didn't provide them at all. For 4 weeks, we sent reminders, calls, emails. No response or updates. It was affecting us; 6 weeks is over. Today, we got an email saying they are canceling the PO and not paying at all. The PO clearly states "partial payment" is included. Our contract states delays caused by clients are their fault and are payable. We have full proof of work, emails & records. We want to take legal action and get compensation for all work done, delays, time wasted, and damages as we had to stop other work. Please advise!

Q: Dear sir/madam, I have a contract with a client who has terminated it but they do not want to pay for either the fee for the delay in the first payment (which is included in the contract) nor for the 1 month which is pending due to the 30 days termination period stated in the contract. Kindly advise on my rights regarding both parts. Thanks!

Q: Dear Sir/Madam, A company used our services to purchase airline tickets from us more than 13 months ago. They have not paid us. We need to recover our money and would appreciate your help for the same. Thanks!

Both creditors and borrowers must be aware of their rights and responsibilities when navigating the complicated laws and regulations of debt collection in the United Arab Emirates. In order to guarantee equitable treatment for all parties concerned, a set of laws and regulations control the legal debt collection procedure in the United Arab Emirates.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

The law promulgates UAE Civil Procedures Code (Civil Procedure Law) which governs civil procedures in the United Arab Emirates, including the prosecution before the courts, litigation and execution.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.