Company demands an institution for 24 million dirhams due to «delay»

The Federal Supreme Court overturned a judgment requiring an institution to pay an amount of AED 24 million to a company with which it contracted a contract.It referred the case to the Court of Appeal for further consideration in the light of the failure to respond to the defendant's defense about the delay in completing the contracting work, the subject of the case, which was by the plaintiff.

In detail, the company filed a lawsuit claiming an institution with which it signed a subcontract contract to pay 14,366 thousand dirhams, including the rest of its entitlements and the amount of bookings with a legal interest of 12% and seven million and 347 thousand dirhams for operating expenses and the cost of prolongation incurred for the additional period and 2.4 AED 1 million for loss caused by defendant refusal to accept its supplier.

It stated that in 2013 it entered into a contract with the Corporation to supply, install, inspect, test and deliver the work of electrical cables. The completion of the works should have provided the electrical stations with the connection, allowing the company to complete its work during the agreed period, but it was delayed in the completion of electrical stations. , Which led to the disruption of the contracting business and extended contract period.

The Court of First Instance ordered the defendant to pay the plaintiff an amount of AED 11 million and 26 thousand, and rejected the rest of the applications, and then the Court of Appeal obliged the defendant to pay the amount of 11 million and 26 thousand dirhams and compensation of 5%, including all damages until full payment, and does not exceed the amount awarded , Otherwise refused requests.

The defendant did not accept the verdict, and she challenged the verdict, explaining that the expert expert decided that there was a delay on the part of the company, and that this delay was not affected by the fact that the stations covered by simple work can not be implemented only after charging the other unprepared stations, and that the expert reached Contravenes the general conditions of the contract.

The Federal Supreme Court upheld the appeal, explaining that the decision, and the decision of the court, that the trial court is obliged to investigate on its own right the valid legal ruling applicable to the relationship between the parties to the fallout, and apply it to the incident before it as the direct cause of the right.