Sowwah Square Investment - Sole Proprietorship LLC v Forever Rose Retail Ltd [2026] ADGMCFI 0013 (22 April 2026)

Sowwah Square Investment - Sole Proprietorship LLC v Forever Rose Retail Ltd [2026] ADGMCFI 0013 (22 April 2026)

Summary judgment is granted for tenant payments and yield up costs because the defendant has no real prospect of successfully defending these claims and there is no compelling reason for a trial. Summary judgment is refused for liquidated damages and late payment fee because there is a real prospect of a successful defence that these are unenforceable penalties under the proportionality test.

Citation
[2026] ADGMCFI 0013
Parties
Claimant: Sowwah Square Investment - Sole Proprietorship L.L.C.; Defendant: Forever Rose Retail Limited
Jurisdiction
United Arab Emirates
Judgment Date
22 April 2026
Procedural Posture
Summary Judgment Application / Judgment on Summary Judgment Application at First Instance
Outcome
Summary judgment granted in part for claimant; dismissed in part for defendant.
Legal Topics
Summary Judgment, Breach of Commercial Lease, Tenant Payments, Yield Up Costs, Liquidated Damages, Late Payment Fee, Unenforceable Penalties, Proportionality Test
Commercial Law Real Property Law Contract Law Summary Judgment Breach of Commercial Lease Tenant Payments Yield Up Costs Liquidated Damages +3 more

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Parties

Sowwah Square Investment - Sole Proprietorship L.L.C.

Claimant

Forever Rose Retail Limited

Defendant

Procedural Posture

Summary Judgment Application / Judgment on Summary Judgment Application at First Instance

Legal Issues

  1. 1 Whether the defendant has any real prospect of successfully defending claims for tenant payments and yield up costs under a commercial lease
  2. 2 Whether claims for liquidated damages and late payment fee constitute unenforceable penalties under the proportionality test

Ratio Decidendi

Summary judgment is granted for tenant payments and yield up costs because the defendant has no real prospect of successfully defending these claims and there is no compelling reason for a trial. Summary judgment is refused for liquidated damages and late payment fee because there is a real prospect of a successful defence that these are unenforceable penalties under the proportionality test.

Court Disposition

Summary judgment granted in part for claimant; dismissed in part for defendant.

Orders

  • Defendant to pay claimant AED 654,410.79 (AED 608,525.79 for tenant payments and AED 45,885 for yield up costs)
  • Questions of interest and costs reserved pending trial on unenforceable penalties issue