This word is often used to offend people (mainly girls) who did a mistake or have done something very wrong. All people having a firstname starting with the letter "H" can be described as a "Dulli" (,In Germany and Austria it is very common that those people have a surname starting withe the letter "K").
You can use it like the following examples:
1. Hannah, why did you not clean your room before your boyfriend came. You're such a Dulli.
2. You haven't read that book until now, have you? Don't be a Dulli.