Al Mazaya Holding Co (K.S.C) a leading property firm in the region, signed a contribution contract with “Oman Construction” to share in a real estate investment portfolio in Oman with a capital of OMR 3.1 million. Al Mazaya’s share is 40% while 12% is for Oman Construction and 12% for “Mina” real estate company. The remainder of the percentage is submitted for IPO from a chosen group of investors and real estate companies.
Lawsuit against Kuwait Business Town Real Estate Company
With reference to the above subject and to paragraph 14 of article 4-1-1 of chapter four of book 10 of the executive regulation of law No.7 of 2010 in connection with the incorporation of the Capital Markets Authority and regulation of securities activity, kindly be advised of the following:
| Date | 4/5/2016 |
| Name of listed company | Al Mazaya Holding Company KSCP (Holding) |
| Case No. | 994/2015-1042/2015 commercial cassation/5 |
| Case subject | Challenging the arbitration award ruling for obliging the arbitration defendant / Kuwait Business Town Real Estate Company to pay to the arbitration plaintiff/ Al Mazaya Holding Company the sum of KD 837,806/261 with the legal interests by 7% of the amount awarded effective the claim date up to payment in full. |
| Award date | 4 May 2016 |
| Court passing the award | Court of Cassation |
| Case parties | Al Mazaya Holding Company KSCP Kuwait Business Town Real Estate Company KSCP |
| Award in favour of | Has not been determined yet |
| Text of first instance judgment | Oblige the plaintiff (Kuwait Business Town Real Estate Company) to pay to the defendant (Al Mazaya Holding Company) the sum of KD 837,806/261 (eight hundred, thirty seven thousand, eight hundred and six Kuwaiti dinar and 261 fils) and the legal interests by 7% annually effective 24 June 2013 up to payment in full, and obliging it with the expenses and one thousand dinar for the actual attorney’s fees. |
| Text of the appeal judgment | Oblige the plaintiff (Kuwait Business Town Real Estate Company ) to pay to the defendant (Al Mazaya Holding Company) the sum of KD 837,806/261 (eight hundred, thirty seven thousand, eight hundred and six Kuwaiti dinar and 261 fils) and the legal interests by 7% annually effective 24 June 2013 up to payment in full, and obliging it with the expenses and one thousand dinar for the actual attorney’s fees. |
| Text of the cassation judgment | Accept the objection for the first respondent (Al Mazaya Holding Company) in the objection subject; 1024/2015 (objection filed by Kuwait Business Town Real Estate Company) for cassation of the challenged judgment and in the subject of both appeals Nos. 3829 and 4001 of 2014 commercial appeal/14 for referring them to the experts and payment of a bail of KD 100 by the appellant in the second appeal. It scheduled the hearing of 25 May 2016 for payment of the bail and the hearing of 22 June in front of the experts and the hearing of 21 September 2016 for receiving the report. |
| Expected effect on the company as a result of the award | In the event of passing a final and conclusive judgment by the Court of Cassation in favour of the company, this will result in profits equivalent to the amount awarded in favour of the company, by reversing the provisions which were already entered for the aforesaid amount. |
