Hysen Muca, who owns a car wash firm, said the business rival had taken property belonging to him and he had to drive to get it back. He also said the business rival had then shopped him to police.
Magistrates at Eastbourne heard how 41-year-old M
r Muca was stopped by police and found to be disqualified. He was also charged with driving with no insurance and using a false statement to obtain insurance.
Mr Muca, of Seaside, Eastbourne, pleaded guilty to all three charges and was given a community sentence.
The court heard Mr Muca had applied for motor insurance from Norwich Union without disclosing that he had been disqualified from driving.
David Battaliou, defending, said English was not the first language of Mr Muca, originally from Albania, and he had become confused, believing his 12-month disqualification had expired.
His driving ban was lifted on May 1 but he was caught driving his Mercedes Benz two months earlier, on March 1 this year.
Mr Battaliou said a business rival of Mr Muca, who owns a car wash business, had reported him to police and it was alleged the rival had taken some of the defendant's property which he had to drive the car to retrieve.
Mr Muca was given a 12-month community order with 70 hours of unpaid work and points on his licence. He will also pay £60 in prosecution costs.