Dubai RDC Rules Against Tenant After Dh2.4 Million Unpaid Rent, Orders Eviction

A commercial tenant in Dubai's Business Bay has been ordered to vacate the property by the Dubai Rental Disputes Centre (RDC) after failing to pay Dh2.415 million in rent over eight months. The ruling highlighted the importance of adhering to statutory deadlines in rental disputes, as a late payment attempt did not prevent eviction.

Case Details

The dispute involved a commercial tenancy agreement where the tenant had not made any rental payments since the beginning of the lease, accumulating a total overdue amount of Dh2,415,000. Following the prolonged non-payment, the landlord initiated legal proceedings by serving a formal notice. This notice demanded either payment of the outstanding rent or vacation of the property within 30 days.

However, the tenant failed to settle the amount within this specified timeframe. During the legal proceedings, the tenant presented a certificate indicating an offer and deposit of the outstanding rent, attempting to show willingness to fulfill their obligations.

RDC Ruling

The First Instance Committee of the RDC found that the tenant's offer and deposit were made after the statutory 30-day deadline had expired. Consequently, the committee determined that this subsequent attempt to settle the rent had no legal effect in preventing the eviction.

Referencing Dubai Law No. 26 of 2007, as amended by Law No. 33 of 2008, which governs landlord-tenant relations in the emirate, the committee affirmed that landlords are entitled to seek eviction if tenants fail to pay rent within 30 days of receiving the required legal notice. The ruling made it clear that failure to comply with the prescribed period allows for eviction, irrespective of later payment attempts.

Outcome

The RDC ordered the tenant to vacate the commercial premises and hand over the property free of occupants and belongings. The tenant was also mandated to pay any additional rent accruing at the applicable annual rate until the actual eviction date, along with all relevant fees and costs.