The Rental and Real Estate Dispute Resolution Committee in the Ras Al Khaimah Court ruled to cancel the rental contract for a company to recycle aircraft at Ras Al Khaimah International Airport, to vacate the building and deliver it to Ras Al Khaimah Airport in the state it was in at the time of the contract. He exchanged rental value and consumed electricity, water and other services, and rejected any other requests and obligated the company representative with fees, expenses, and attorney fees.
She explained that the annulment of the rental contract entails the fall of the penal clause agreed upon with the delay fine, as it is an affiliate of the rental contract that rescinded what leads to the rejection of the request for the delay fine, and also rejected the request for legal interest because it does not see it as obligatory. According to the lawsuit filed by the airport, he rented the company a building for a period of five years in return for the rent of one million dirhams annually vehicle at a rate of 5% for each year paid in advance in four installments due every three months, and the company committed, according to the agreement, to pay the expenses of electricity, water and other services, and it was agreed However, if he does not pay the rental value or any fees under the contract at the due date, a fine of 8% per annum is imposed without contradicting the right to terminate the contract and evict it from the leased property. She explained that the company failed to pay the rent and the value of the rent owed by it amounted to three million and 130 thousand and 860 dirhams, in addition to 107 thousand and 783 dirhams of electricity and water expenses. She pointed out that the airport notified the company through its representative (the second defendant) of paying the rents and expenses due, but that its representative refrained from doing so unlawfully, and demanded the airport to cancel the lease contract and obligate it to vacate the building and deliver it in the state it was in, and to compel the company to pay the rent resulting from it during The progress of the lawsuit, payment of fines of late payment of 8%, and fees, expenses and attorney fees. It was stated in the operative part of the ruling that the company did not deny the non-payment of the due wages and the expenses of water and electricity, and in return for the services provided to it until the date of March 24, 2020, as a result of its occurrence in financial problems, pointing out that after listening to the statements of the parties and reviewing the documents and analyzing them, the company’s allegations are not Contractually justified and does not give it the right to refrain from paying the wages due and the expenses for water, electricity and services. The court clarified that the constant from the experts report to which the committee is assured is that the defendant’s liability is occupied by the plaintiff in the amount of two million and 919 thousand 574 dirhams, instead of a rental value and a fee for electricity, water and services expenses, follow-up that the elimination of the lease contract results in the fall of the penalty clause agreed upon with the delay fine as An obligation subordinate to the termination of the lease, which was canceled, which leads to the rejection of the request for the delay fine, as well as the request for legal interest, because it does not see it as obligatory.
The termination of the lease terminates the penal clause as an affiliate obligation of the lease.