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You are here: BAILII >> Databases >> The Dubai International Financial Centre >> Nilda v Nixie [2024] DIFC SCT 209 (09 August 2024) URL: http://www.bailii.org/ae/cases/DIFC/2024/DSCT_209.html Cite as: [2024] DIFC SCT 209

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Nilda v Nixie [2024] DIFC SCT 209

August 09, 2024 SCT - JUDGMENTS AND ORDERS

Claim No: SCT 209/2024

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

BETWEEN

NILDA

Claimant

and

NIXIE

Defendant

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Hearing :	27 June 2024
Judgment :	9 August 2024

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JUDGMENT OF H.E. JUSTICE MAHA AL MHEIRI

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UPON this Claim being filed on 21 May 2024

AND UPON a hearing held before H.E. Justice Maha Al Mheiri on 27 June 2024, with the Claimant’s and the Defendant’s representative attending

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 amount of AED 186,509.47.

2. The Defendant shall issue the VAT invoice for the supplied items of AED 97,920.90

3. The Defendant shall pay the Claimant the Court fees in the amount of AED 9,331.82.

Issued by:
Delvin Sumo
SCT Judge and Assistant Registrar
Date of Issue: 9 August 2024
At: 9am

THE REASONS

The Parties

1. The Claimant is Nilda (the “Claimant”), a company located in Dubai, UAE.

2. The Defendant is Nixie, a company located in Dubai, UAE (the “Defendant”).

Background and the Preceding History

3. On 20 October 2023, the Claimant and the Defendant entered into a Settlement Agreement (the “Settlement Agreement”), pursuant to which the parties agreed on the following:

“Nilda has Placed an order on 9" Sept,2022 for AED 671,500.07 Including Vat) by issuing a purchase order to Nixie.

Nilda has paid 30% of order value as Advance ie. AED 201,450/- on 11/11/2022 through a bank transfer to Nixie. For the performance of the order, Nilda received same time a guarantee (sic) cheque for AED 201,450/- from Nixie .

Subsequently Nilda has made another payment to Nixie for AED 122,980.37 on 05/05/2023.

Therefore, Nixie received total Alb 324,430.37 as Advance from Nilda.

Thereafter, Nixie could not perform the fulfillment of the ordered items and Nilda has received materials worth AED 97,920.90 (including VAT) only.

Subsequent to various meetings and correspondence, concluded that onbehalf of Nixie, Nixie having operations from Mainland under the management of Norman , will repay the recived (sic) advance less supplied items value (ie. 324,430.37 - 97,920.90 )= AED 226,509.47 to Nilda as below:-

40,000.00 AED - 30 October 2023

40,000.00 AED - 30 November 2023

40,000.00 AED - 30 December 2023

106,509.47AED - 30 January 2024

Whereas, Nilda has agreed the above and Nixie is instructed to issue PDC/s as above on or before 20TH Oct, 2023.

hereof, Nilda has confirmed that they will not deposit to the bank the gurantee (sic) cheque (Chq: for AED 201,450/-) subject to clearances of the issuing PDC/s as dated and valued above. However, Nilda reserve the rights to encash the cheque if Nixie fails to clear the payments as above in full or part of. Upon receipt of full payment as stated above, Chq: for AED 201,450/ will be returned to Nixie.

Agreed and confirmed as above on this date20/10/2023at Dubai. With 2 copies signed and exchanged each other.”

4. The Defendant provided 4 postdated cheques for the amounts that were agreed in the Settlement Agreement. The Defendant fulfilled the payment of the first cheque only and for the other cheques there was no balance in the Defendant’s account.

5. On 21 May 2024, the Claimant filed a claim in the DIFC Courts’ Small Claims Tribunal (the “SCT”) claiming the following claims:

(a) AED 186,509.47 for the unpaid cheques;

(b) Issue the VAT invoice for the amount of AED 97,920 against the supplied items; and

(c) The Court fees.

4. The parties met for a Consultation with SCT Judge Delvin Sumo on 30 May 2024 but were unable to reach a settlement. In line with the rules and procedures of the SCT, this matter was referred to me for determination, pursuant to a Hearing held on 27 June 2024.

Discussion

5. This dispute is governed by the DIFC Contract Law and the relevant case law and principles concerning a breach of contract. Neither party has disputed the jurisdiction of the DIFC Courts and thus the Court assumes jurisdiction of this dispute, the purchase orders issued between the parties includes the following:

“Any dispute arising out of or in connection with this contract, including its formation, performance, interpretation or termination, shall wherever possible be determined by the Small Claims Tribunal of the DIFC Courts or if outside its jurisdiction then to the DIFC Courts to which jurisdiction the parties irrevocably submit.”

6. At the Hearing, the Defendant went into details in relation to the transactions and history between the parties which is not the subject of the Claim before me. In this Judgment, I will only review and deal with the issues included in the Settlement Agreement that the parties signed and agreed to, I will not discuss or review any submissions that was given that do not deal with the Settlement Agreement.

7. The Settlement Agreement is straight forward; the parties agreed to a payment plan to settle and close the pending issues which the Defendant failed to meet. The Claimant filed a claim to receive a judgment in relation to the signed Settlement Agreement.

8. Therefore, I have determined that the Defendant shall pay the Claimant the amount of AED 186,509.47, in addition to issuing the vat invoice in relation to the amount AED 97,920.90.

Conclusion

9. In light of the aforementioned, I find that the Defendant shall pay the Claimant the sum of AED 186,509.47 in addition to the Court fees in the amount of AED 9,331.82.