Rental Disputes Center obligated a tenant to pay 250000, chiller charges for a 6-month consumption
The Dubai Rental Disputes Center, the judicial arm of Land Department, has obliged a tenant to pay AED 250,000 as consumption fee over a span of six-month.
The RDC judicial verdict stated, as perused by the daily “Emarat Al-Youm” that the case belonged to one of the companies (tenant), including an individual issued the cheques, stressing both the signatory of the cheques and the tenant in lawsuit are jointly responsible for.
Payment of charges
The Rental Disputes Center, the judicial arm of the Land Department, confirmed that the tenant is also liable to pay the charges and taxes due on the use of the leased real estate property to the government authorities and departments, pointing out that this was stated in a recent delivered verdict on a leasehold; the tenant was obliged to pay an amount of AED 250,000 for chiller charges against the consumption over a period of six-month.
The RDC indicated that the owner may include the signatory of cheque along with the tenant as parties in disputes. In the event of the latter breaching the lease concluded among them, the parties (cheque signatory and tenant) are jointly obliged to pay the value of those cheques. The owner of the real estate property may additionally impose a penalty on the tenant in the event of dishonoured cheques during the lease period. However, the tenant, shall only be liable for any amount other than these cheques.
Lawsuit details
Briefing on the lawsuit, the RDC explained that the case was about one of the companies (having its name on the lease as tenant) and the signatory of cheques, over a lease, worth AED 3,180,000 with rent, signed for the period from February 1, 2020 to January 31, 2021.
The RDC reported that the property owner (plaintiff) claimed the tenant for payment of rental cheques and service charges, pointing out that Law No. (26) of 2007 as amended by Law No. (33) of 2008 on Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai, stated, “the tenant must pay the rent on due dates, in addition to his obligation of paying all fees and taxes due to Government entities and departments unless the tenancy contract states otherwise.
Judgment
The RDC judicial committee hearing the case imposed both the defendants (the tenant company and signatory of cheques) to jointly pay the cheque amount of AED 795,000 against the rent for the period from May 1, 2020 to October 31, 2020.
The Committee also obligated the defendant (the tenant) to pay AED 250,000 against chiller consumption charges for the period from February 1, 2020 to July 31, 2020, as well as the later consumption charges up to the date of the ruling.
The tenant is liable to pay the charges and taxes due on the use of the leased premises to the Government authorities and departments.