DCC 34/2012
This case involved the rescission of a property sales contract because construction had not been started as planned. Key issues included the impact of the purchaser not making all scheduled payments. The case also considered what in the context of raising an arbitration clause would be considered the first hearing.
Background
A Respondent filed claim No. 684/2009 (General - Real Estate) before the Dubai Court of First Instance requesting the cancellation of a sales agreement executed between the Respondent and the Appellant on 23/6/2008 and ordering the Respondent to return 6,952,500 AED in addition to 9% legal interest as of the date of the claim.
Under the sale agreement, the Respondent before the first instance court (Appellant) sold to the Claimant before the first instance court the whole of a commercial building for 145,250,000 AED. The Claimant paid 6,952,500 AED.
The sale agreement was not registered on the real estate registry so the Claimant filed the claim. At the hearing dated 8/7/2009, the Respondent before the first instance court rejected the claim on the grounds of the existence of an arbitration clause.
Proceedings
Court of First Instance I Decision dated 24/1/2010 I Acceptance of the Claim