Real estate firm told to pay Dhs130,000 as compensation to GCC national for not handing over property on time

Sarah Al Belushi, Staff Reporter
Sharjah Arbitration Centre (TAHKEEM) fined a real estate development company Dhs130,000 in compensation to a GCC national, in addition to a 5% legal interest, and obligated it to pay the full arbitration expenses, excluding attorney’s fees, after failing to hand over a residential unit to the GCC national, which was agreed on to be handed over at the time specified in a contract.
The details of the lawsuit date back to the time when a GCC national bought a residential unit which was still under construction, and paid part of its value in installments.
When the handing over date approached, it was extended due to the company’s inaction, as only 20% of the project was completed at that time.
The buyer gave the company other opportunities to hand him over the unit, but it did not do over a period of five years.
The company submitted documents and declarations proving that a holding company was obligated to return the amounts to the GCC national and requested the arbitration panel to reject the case due to the invalidity of the arbitration and its issuance by an unauthorised body.
The GCC national’s lawyer, Counselor Dr Alaa Nasr, said that the case took place in 2016, and the Centre’s ruling was issued on Nov.1, 2023, which obligated the company to return all the money that the GCC national paid, in addition to fining it the same amount as legal compensation for the damage he incurred.