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.
Two subsidiaries of Al Mazaya Holding Company in the United Arab Emirates had filed a lawsuit before the courts of the Emirate of Dubai with total claim amount of AED 57,876,880 .
With reference to the above subject and to paragraph (14،22)of article 4-1-1 of chapter 4 of book 10 of the executive regulation of law No.7 of 2010 regarding the establishment of the Capital Markets Authority and regulating securities’ activities, kindly find the attached Lawsuits disclosure form
Lawsuits Disclosure Form
| Date: | 19/10/2021 |
| Name of the Listed Company | Al Mazaya Holding Co. K.S.C.P |
| Lawsuit Number | 297/2020 – Plenary real estate 32-56/2021 – Real estate appeal 401 /2021 Cassation Real Estate |
| Subject of the Lawsuit | Two subsidiaries of Al Mazaya Holding Company in the United Arab Emirates had filed a lawsuit before the courts of the Emirate of Dubai with total claim amount of AED 57,876,880, which approximately equals KD 4.8 million as of May 31, 2020 against some investors for developing real estate projects in Dubai, in addition to claiming an estimated compensation including opportunity cost, extensive duplicated effort and punitive damages with total amount of AED 87,977,030, which approximately equals KD 7.4 million, in addition to the legal interest to be calculated on the claim at 9% rate from the date of the lawsuit filing until the date of the full settlement, as well as the payment of the fees and expenses and attorney fees. |
| The Court Judgement / Verdict date | 19/10/2021 |
| The name of the Court that issued the Judgement / Verdict | the courts of the Emirate of Dubai – Cassation court |
| Parties of the Lawsuit | Al Mazaya Emirates real estate development and Al Mazaya Real Estate FZ-LLC (subsidiaries)
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| The Judgment / Verdict in favor of | Al Mazaya Emirates real estate development and Al Mazaya Real Estate FZ-LLC (subsidiaries) |
| Court of First Instance Judgment / Verdict | The court ruled in presence that: 1- To dismiss the case against the fourth defendant – Osus United Real Estate group closed shareholding company, previously named Atheer Real Estate Development – for lack of capacity.
2- The Fifth defendant is obliged to pay to claimants an amount of AED 6,359,146.50 ( Six Million Three Hundred Fifty Nine Thousand One Hundred Forty Six Dirhams and Fifty Fills ) towards the outstanding amount for the project R022 till the date of 13- 5-2020 in addition to legal interest of 9% of the amount from the date of legal claim till the date of full payment.
3- The Second defendant is obliged to pay to claimants an amount of AED 7,137,777.65 ( Seven Million One Hundred Thirty Seven Thousand Seven Hundred Seventy Seven Dirhams and Sixty Five Fills ) towards the outstanding amount for the project R081 till the date of 13- 5-2020 in addition to legal interest of 9% of the amount from the date of legal claim till the date of full payment.
4- The first defendant is obliged to pay to claimants an amount of AED 6,283,927.81 ( Six Million Two Hundred Eighty Three Thousand Nine Hundred Twenty Seven Dirhams and Eighty One Fills ) towards the outstanding amount for the project R082 till the date of 13- 5-2020 in addition to legal interest of 9% of the amount from the date of legal claim till the date of full payment.
5- Refuse all others sought remedies, and obliged the First, Second, and Fifth defendants to beer all the claim cost and fees and One Thousand Dirhams as advocate fee. |
| Court of Appeal Judgment / Verdict | Accepting both appeals in form and rejecting their substance as well as confirming the verdict of the First Instance Court and obliging each appealing party with costs and attorney fees and confiscating the related insurance amount. |
| Court of Cassation Judgment / Verdict | The court ruled to refuse the cassation and obliged the cassation claimants to bear the legal cost and AED 2000 as the advocates fee with forfeiting the cassation deposit
(Which means confirming the appeal ruling that confirmed the ruling of the first instance court in favor of the subsidiaries companies) |
| The expected financial impact on the company as a result of the Judgment / Verdict | The Judgment is currently under execution by the subsidiaries and shall result in recognizing profits upon its execution that are equal to the adjudged amount of AED 19,780,852 Which is equivalent to approximately 1.62 million Kuwaiti dinars, in addition to the legal interest of 9% of the amount from the date of legal claim till the date of full payments in the form of reversing the related provisions for the claimed amount, which will be recognized in the company’s consolidated financial statements upon execution of the verdict and receiving the related amount. |
