DCC 113/91

This case involved who was liable for a company's debts. The claimant tried to use the trading licence as proof two of the defendants who were listed on that licence were liable. This was irrelevant when ascertaining a company's debts.

Background

A claim was brought against two defendants and expatriates who were associated with two trading companies. The claimant sought payment of 539,202.75 AED, stating they had supplied the two defendant trading companies with goods to the amount claimed and they had failed to pay. The Court of First Instance ordered the third defendant, an expatriate, to pay the amount jointly with the fourth and fifth defendant trading companies. The claimant appealed and the appeal court upheld the judgement. The claimant appealed by cassation arguing they had submitted copies of the two trading company licenses which showed they were registered under the first and second defendant names. They should therefore be liable for the companies' debts jointly with the third defendant who managed the companies.

Decision