In April 2026, a Dubai court ordered a company to pay more than Dh55 million over diamond and gold jewellery supplied on consignment and never returned or paid for, with 5% annual interest from the filing date. Vishal Tinani commented on the judgment as a legal expert.
Key findings
- The goods were proven to have been delivered and remained unaccounted for.
- The court rejected the argument that the jewellery was merely security for a separate transaction.
- Claims against the company’s two directors personally were dismissed — there was no proof they received the goods or gave personal guarantees.
This judgment reflects a clear application of UAE commercial law principles to the jewellery trade.
Checklist for consignment trading
- Delivery notes signed by an authorised person for every consignment.
- A written consignment agreement stating that title stays with the supplier until payment.
- Return and settlement deadlines, with interest for late payment.
- Personal guarantees from directors if you want recourse beyond the company.
- Regular reconciliation statements signed by both parties.
This article is general information, not legal advice. Every matter depends on its facts — contact us for advice on your situation.
