UAE: Massive Copper Shipment 'Disappears' En Route To India, Manufacturer Wins Legal Battle

(MENAFN- Khaleej Times)

A massive copper shipment weighing nearly 49.9 tonnes mysteriously vanished while being transported from the UAE to India, leaving the driver responsible for the missing delivery.

The incident prompted the owning company to seek compensation from its insurance provider, which promptly paid Dh1.67 million. The company then pursued legal action against the transport companies and the missing driver, ultimately securing a favourable ruling from Dubai's courts.

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The case began when a specialised copper rod manufacturer arranged for the shipment to reach its clients in India through contracted shipping and transport companies. Surprisingly, the entire cargo disappeared during transit, and the driver went missing, causing immediate and substantial financial losses for the manufacturer.

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The manufacturer filed a claim with its insurance company, which compensated the full amount of Dh1.67 million according to the insurance policy. Following this, the manufacturer initiated legal proceedings against the transport companies and the absconding driver, seeking to recover the compensation along with statutory interest.

The Dubai Court of First Instance ruled in favour of the manufacturer, holding all defendants jointly liable for paying the compensation amount with 5 per cent interest, in addition to covering legal fees and expenses.

The transport companies appealed the decision, each presenting different defences. One argued that its responsibility ended at a specific stage of the shipment, while the other denied that the cargo ever existed, claiming that the documentation was insufficient to prove the copper was loaded onto the truck. The second company also cited an arbitration clause requiring disputes to be settled through the Dubai International Financial Centre courts and referenced new maritime law provisions limiting a carrier's liability.

After reviewing the appeals, the Court of Appeal found that the evidence provided by the public prosecution, incident reports, and the insurance company's documentation was sufficient to establish liability. The court emphasised that the driver was not merely a passive participant but a key party responsible for the loss after leaving the country and abandoning the shipment.

The Court of Appeal rejected both appeals, upholding the original ruling and confirming that the defendants must pay the compensation, interest, and all related legal costs.

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