DCC 20/2004

This case involved a contract for the sale of land which could not be completed. Key issues involved that there had been an earlier contract for the sale of this land and that buildings had been built on the land by the other party.

Background

Under a sale contract, an Appellant sold the Respondents (Plaintiff in the first instance) some land for 100,000 AED, and they paid 75000 AED and pledged to pay the rest when the Defendant register the land with the Department of Land and Property.

The Plaintiffs built two villas on this land with the knowledge and consent of the Defendant for 250,000 AED.

It turned out that the land had been granted by the Ruler and the Defendant had not registered it and after the sales contract seized possession of it and one of the villas and rented the other.

The Plaintiffs presented this dispute to the Land and Property Department which referred it to the court.

The Defendant filed a counter-claim to order the Plaintiffs to pay 2,340,000 AED and 9% interest from the date of the lawsuit until completion of payment, for the period of use of the two villas on the plot.