Claim No: SCT 071/2023
THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
In the name of His Highness Sheikh Mohammed Bin Rashid Al Maktoum,
Ruler of Dubai
IN THE SMALL CLAIMS TRIBUNAL OF DIFC COURTS
BEFORE H.E. JUSTICE NASSIR AL NASSER
BETWEEN
IMIRTU
Claimant
and
MRAWIN
Defendant
| Hearing : | 23 March 2023 |
|---|---|
| Judgment : | 3 April 2023 |
JUDGMENT OF H.E. JUSTICE NASSIR AL NASSER
UPON the Claim dated 13 February 2023
AND UPON the Hearing listed before H.E Justice Nassir Al Nasser on 23 March 2023, with the Claimant’s and the Defendant’s representatives in attendance
AND UPON reading the submissions and evidence filed and recorded on the Court file
IT IS HEREBY ORDERED THAT:
1. The Defendant shall pay the Claimant the sum of AED 21,000 inclusive of 5% VAT.
2. The Defendant shall pay the Claimant the Court fees in the sum of AED 1,050.
Issued by:
Hayley Norton
Assistant Registrar
Date of Issue: 3 April 2023
At: 11am
THE REASONS
Parties
1. The Claimant is Mirtu (the “Claimant”), a company registered in Dubai and located at Dubai Design District, Dubai, UAE.
2. The Defendant is Mrawin (the “Defendant”), a company registered and located in DMCC, Dubai, UAE.
Background and Procedural History
3. The underlying dispute arises in regard to an alleged breach of Contract dated 12 September 2022 (the “Agreement”) by the Defendant.
4. On 13 February 2023, the Claimant filed a Claim seeking the payment of two invoices in the sum of AED 21,000.
5. On 20 February 2023, the Defendant filed its defense setting out its intention to defend all of the claim.
6. The parties met for a Consultation with SCT Judge Delvin Sumo on 1 March 2023 but were unable to reach a settlement.
7. In line with the rules and procedures of the SCT, this matter was referred to me for determination, pursuant to a Hearing held on 23 March 2023, at which the Claimant’s and the Defendant’s representatives were in attendance.
Claim
8. The Claimant submits that the Defendant breached the Agreement by failing to pay the two months’ notice as per Clause 3.1 of the Agreement which states that:
“3. Cancellation
3.1 This Contract may be terminated by the Client or the Agency on a written two-month notice stating the reason for termination. The agency will charge for any outstanding work or work that was undertaken at the time of termination.”
9. Therefore, the Claimant claims the total sum of AED 21,000 in relation to two-months termination notice.
Defence
10. In response, the Defendant submits that the Claimant failed to deliver what was agreed in the Agreement. Therefore, on 12 December 2022, the Defendant decided to terminate the Agreement with immediate effect.
11. The Defendant submits that due to the non-performance by the Claimant as per the Agreement, they have lost a crucial time of 3 months after launch of the business which affected them financially.
12. Therefore, the Defendant submit that they are not liable to pay the Claimant the two-months-notice period and/or damages.
Finding
13. The parties signed the Agreement on 12 September 2022.
14. On 12 December 2022, by way of an email, the Defendant terminated the Agreement. submitting that the Claimant failed to comply with the Agreement.
15. The Claimant provided evidence of the work done, which consisted of reports, event proposal and emails between the Claimant and the Defendant.
16. The Defendant failed to file any evidence of non-performance to support his submissions.
17. Therefore, pursuant to clause 3.1 of the Agreement, I find that the Defendant shall pay the Claimant the two-months’ notice in the sum of AED 21,000 inclusive of the 5% VAT.
Conclusion
18. In light of the aforementioned, I find that the Defendant shall pay the Claimant the sum of AED 21,000 inclusive of 5% VAT.
19. The Defendant shall pay the Claimant the Court fees in the sum of AED 1,050.