Court cancels two service agreements and mandates refund
The Dubai Court of First Instance has ordered an immigration services company to refund Dh92,886 to a client after finding that the firm breached its contractual obligations, in addition to paying Dh10,000 in compensation and annual interest of 5 per cent from the date the judgment becomes final until full settlement. The court also rejected a request to grant immediate enforcement of the ruling without a guarantee.
According to court records, an Arab national filed a civil lawsuit seeking cancellation of two agreements he had concluded with the defendant company for immigration consultancy services. The original contract concerned assistance in obtaining permanent residency in Canada, which was later amended to cover an application for a United Kingdom skilled worker visa. The claimant stated that he had paid the full contractual amount but did not receive the agreed services.
The plaintiff requested the court to order the company to refund approximately Dh92,000 and award Dh50,000 in compensation for material and moral damages, together with legal interest of 9 per cent from the date of filing the claim until payment, in addition to court fees, expenses and legal costs, and sought provisional enforcement of the judgment.
In his statement of claim, the plaintiff said he entered into a services agreement with the company in May 2023 for Canadian permanent residency processing in return for Canadian dollar 16,500, which he paid in full. He alleged that the company failed to undertake substantive procedural steps or achieve any tangible progress, constituting a material breach that rendered the contract devoid of purpose. An addendum signed in December 2023 expressly stipulated that the company would refund the full amount if the agreed services were not delivered.
The claimant further stated that, in an attempt to resolve the dispute amicably, the company proposed an alternative agreement in October 2024 to process a UK skilled worker visa application. He accepted the proposal in good faith; however, he maintained that the company failed to take any serious action for more than six months and did not provide proof that an application had been lodged with the competent authorities despite repeated follow-ups.
Court documents also showed that the company acknowledged via email that the total amount paid by the claimant was Dh92,886 and offered to repay the sum in three instalments. Although the claimant agreed to the arrangement, the company failed to honour the proposed repayment schedule.
In its reasoning, the court held that the claimant had established payment of the claimed amount and that the defendant had failed to perform the contractual services stipulated in the agreements, amounting to a breach warranting rescission. Accordingly, the court ordered termination of both agreements, restitution of the paid amount as a legal consequence of rescission, and compensation of Dh10,000 for damages sustained by the claimant, together with annual interest of 5 per cent from the date the judgment becomes final until full payment.
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