Case against firm over non-payment of Dh1.8M quashed The complainant

abu dhabi — The Federal Supreme Court has dismissed a lawsuit against a contracting company in which a firm supplying building materials accused it of breaching an agreement when it failed to pay Dh1.8 million.

Court documents stated that the supplying firm operating in a northern emirate had filed a complaint against the contracting company after allegedly supplying it with building materials without receiving the due payment. The firm demanded that the court force the contracting company to pay all the cash it owed them in addition to interest as applicable.

According to the complainant, the construction firm had received various building materials from them under a subcontract signed in March 2015. The complainant had also filed in court eight invoices that were issued by the contracting firm, acknowledging receipt of the materials. The complainant said the invoices “clearly showed” the value of the materials received by the contracting firm.

The construction firm, however, argued that there was a “negotiation clause” in the agreement between them and the supplier. The defendant’s lawyer argued that there was “an error in the application of the law” because the plaintiff didn’t consider some sections of the agreement before taking the matter to court. The lawyer requested the court to dismiss the case.

The courts of first instance and appeals had earlier dismissed the case, but the complainant appealed the rulings at the UAE’s top court.

The supreme court ruled that the agreement between the two firms had an arbitration clause. The court has advised both parties to settle their dispute out of court.

The invoices “clearly showed” the value of the materials received by the contracting firm.”