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Can an international supplier still sue me in 2025 for unpaid stock delivered in 2019?

Hello,

I own and run a company. We received stock from an international supplier in 2019. However, we were unable to pay due to financial circumstances.

The supplier is now threatening to file a civil case in 2025.

Is there a limitation period within which they can still pursue this debt?

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Mohamed Bakheet Advocates & Legal Consultants
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31 May 2025, 19:17

15-year statute of limitations for civil suits.

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Dar Al Haqooq Legal Consultancy
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31 May 2025, 19:53

Dear Client,

Thank you for your inquiry regarding the limitation period for pursuing commercial debts in the UAE.

Based on the information you provided, if your company received stock from an international supplier in 2019 and the debt remains unpaid, the limitation period for most commercial debts under UAE law is generally three years from the date the debt became due.

This means that, unless there has been a written acknowledgment of the debt, partial payment, or previous legal action that could reset the limitation period, your supplier’s right to file a civil claim may have expired in 2022.

However, certain circumstances, such as the nature of the contract or specific actions taken, could affect this period.

We recommend a thorough review of your contract and any related correspondence to confirm the applicable limitation period and to ensure you are fully protected.

If you receive any legal notices or court documents, it is important to respond promptly and appropriately, citing the limitation period as a defense if applicable.

Our firm offers comprehensive legal services in this area, including:

- Reviewing your contracts and communications.

- Advising on the limitation period and your legal position.

- Drafting formal responses to the supplier or their legal representatives.

- Representing your company in court, if necessary.

If you would like to discuss your case in detail or require professional assistance, please do not hesitate to contact us. Our experienced team is ready to support you and safeguard your business interests.

Best regards,

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Ahkam Legal Consultancy
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1 Jun 2025, 04:35

Dear Questioner,

Thank you for your inquiry regarding the supplier debt dating back to 2019!

Under UAE law, specifically the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022), the limitation period for commercial debts is 10 years, unless interrupted by specific actions, such as a written acknowledgment, partial payment, or commencement of legal proceedings.

This means the supplier may still have the right to file a claim up until 2029, depending on whether there has been any form of acknowledgment or legal action since the original transaction.

To provide you with tailored legal advice and assess your position more precisely, I recommend scheduling a consultation where we can review any relevant documents, correspondence, or payment records.

Please let me know your availability, and we can arrange a suitable time.

Kind regards,

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Engy Nabeel Advocates & Legal Consultants
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1 Jun 2025, 10:39

Hello,

Yes, according to the law, the statute of limitations for commercial transactions expires after five years.

However, if there has been correspondence regarding the debt or an acknowledgment from you during the past period, the statute of limitations has been interrupted.

If you have any further questions, please get in touch with us at [--------------].

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Future Vision Advocates Legal Consultancy
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2 Jun 2025, 06:57

Dear Inquirer,

Thank you for your message!

In the UAE, the general limitation period for filing a civil claim related to unpaid commercial debts is 10 years, unless interrupted by formal legal action or acknowledgment of the debt.

Based on your timeline (from 2019), the supplier may still have legal grounds to pursue the claim in 2025, depending on specific details such as communication, payment attempts, or acknowledgments made during this period.

To assess your position accurately and explore possible defenses, we recommend booking a legal consultation or appointing Future Vision for Advocacy and Legal Consultancy to represent your interests.

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Jassim Ali Al Haddad Lawyers and Legal Consultants
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2 Jun 2025, 08:11

5 years starting from 2022, according to Article No. 92 of the Commercial Law No. 50 of 2022: as such, the company still has the right to claim the amount.

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Ibrahim Al Banna Advocates & Legal Consultants
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2 Jun 2025, 08:36

Thank you for reaching out with your query!

Under UAE law, particularly Federal Decree Law No. 42 of 2022 (Civil Procedure Law), the general limitation period for civil claims, such as debt recovery, is 15 years, unless a shorter period applies based on the nature of the claim or specific contractual terms.

However, certain commercial claims may be time-barred after 5 years, especially if they arise from continuous business dealings, unless they are renewed or acknowledged in writing.

The specific facts, such as whether any communication, partial payment, or acknowledgment occurred after 2019, will be crucial in assessing whether the claim is still valid or has become time-barred.

I recommend a detailed review of your documentation and the supplier’s correspondence before any further steps are taken. Early legal intervention can help protect your company from unnecessary liability or adverse judgments.

Feel free to reach out to me directly on WhatsApp or phone at [--------------] to discuss your situation in detail and explore your legal options.

Warm regards,

Suhail Rana

Advocate & Legal Consultant

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Abdulla Almazrouei Advocates & Legal Consultants
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2 Jun 2025, 09:09

Hello,

In many jurisdictions, there is a limitation period (typically 3 to 6 years) within which a civil claim for unpaid debt must be filed.

Since the stock was received in 2019 and no payment or acknowledgment has been made since, the supplier may be time-barred from taking legal action now in 2025.

However, the exact position depends on the applicable law and any communications or part-payments that may have occurred since then.

We’ll carefully review all the documents and correspondences to assess your risk and advise on the best strategy to resolve this, whether by defending a potential claim or negotiating a favorable outcome.

Best regards,

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Rashid Khalil Obaid Advocates and Legal Consultancy
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2 Jun 2025, 09:38

For commercial claims between merchants (which applies to your company and your international supplier), the general limitation period has been reduced from ten years to five years.

The limitation period typically begins from the date the cause of action arises, meaning when the debt became due (e.g., the payment due date on the invoice).

2 Jun 2025, 09:38

If you need further clarification, you may ask.

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