The developer's Index Tower project which is under construction in the Dubai International Financial Center, should have been completed two years ago, the suit claims, according to newspaper Emirates Business.
"The respondents' continuing failure to deliver the units and the failure of the respondent to issue SPA (sale and purchase agreement) in a timely manner is a breach of its contractual obligations," according to documents seen by the paper.
Union Properties' chairman Khalid bin Kalban told Reuters he was unaware of the legal case. "There are complaints of course but management is dealing directly with them," he said.
Earlier in March, the firm said it received "negotiable" offers for its Ritz Carlton hotel in Dubai, which the debt-laden firm is hoping to sell for about 1.5 billion dirhams ($408.5 million).
The developer has 6.5 billion dirhams of outstanding debt, of which 2.8 billion had been rescheduled for payment to 2011 from 2009, with the remainder maturing in the long term.
