Abu Dhabi Court Orders Firm to Pay Dhs85,399 in Car Rental Dispute

July 30, 2025 563

Abu Dhabi Court Rules in Favour of Car Rental Office in Dhs85,399 Non-Payment Case

The Abu Dhabi Commercial Court of First Instance has issued a ruling in favour of a local car rental office, ordering a company to pay Dhs85,399.91 in unpaid vehicle rental fees, along with 3% annual interest from the date of the legal claim until full payment is made. The court also mandated the company to pay all relevant legal fees and case-related expenses.

Background: Three Contracts, No Payment

The case stemmed from a commercial transaction in which the defendant rented three vehicles from the rental office under three legally binding contracts. Despite signing agreements and receiving invoices, the company failed to pay the owed amounts.

The car rental firm filed a lawsuit demanding the full unpaid amount of Dhs85,399.91, plus 12% annual interest from the date of the claim until full settlement.

Court documents showed the rental company submitted:

  • Copies of the signed rental contracts.
  • Official invoices signed by a company employee acknowledging receipt.
  • An account statement confirming the outstanding balance.

The defendant company, however, failed to present evidence or settle the debt, prompting the car rental firm to seek court intervention.

Court’s Decision

After reviewing the documents and validating the commercial nature of the transaction, the court concluded that the defendant:

  • Legally owed the rental office the claimed amount.
  • Had acknowledged receipt of the services via employee signatures.
  • Did not dispute the core facts or present sufficient rebuttal evidence.

The court ruled that:

  • The defendant must pay Dhs85,399.91.
  • Interest at 3% per annum is to be paid from the date the case was filed until the amount is paid in full.
  • The company is also liable for all legal fees and administrative costs associated with the case.

Legal Insight: Commercial Contract Enforcement in the UAE

This ruling underscores the strict enforcement of commercial contracts under UAE Civil and Commercial Law. Courts in the UAE, particularly in Abu Dhabi, place high importance on:

  • Signed agreements and invoices as legal proof.
  • Timely payment of financial obligations.
  • Fair interest imposition on overdue commercial payments.

In this case, while the plaintiff requested 12% interest, the court exercised discretion and granted 3% interest, which aligns with standard practices in commercial disputes where courts seek to balance compensation with reasonableness.

Implications for UAE Businesses

This decision serves as a reminder to companies and individuals engaging in rental or service contracts in the UAE:

  • Ensure timely settlement of dues under signed agreements.
  • Maintain a clear audit trail of invoices and receipts.
  • Understand that non-payment can lead to legal claims, interest accrual, and damaged business reputations.

Conclusion

The Abu Dhabi court’s ruling in this case reinforces the transparency and accountability of the UAE’s judicial system in commercial matters. It also highlights the importance of contractual responsibility and documentation when engaging in business agreements.