BCC 93/2006
Type
Case
Court
Bahrain Court of Cassation
Jurisdiction
Bahrain
Taxonomy
Lending & Security, Financial Institutions, Companies & Corporate Bodies, General Company Law & Business Entities
Copyright
LexisNexis
Decision date
29 May 2006
Catchwords
Debt – Bank – Company – Partnership – Manager – Payment Order – Shares
This case involved a claim against a company manager for the payment of a loan used to buy cars for a company. The judgment was wrongly based on the assumption that the company was dissolved. The correct procedures had not been made for a payment order so the claim should have been filed in the normal way. Partners are liable for a company's debts in proportion to their share in the company so another party should have also been liable.
Background
A bank filed a case against a company and some partners before the court requesting they pay 6474.332 Dinars and interest. The bank said that the company's manager had received a loan in order to buy two cars for the company but failed to pay the debt. The bank said that the partners dismissed the company without following the relevant proceedings.
The court ruled that the company and the partners should pay the amount.
The company's manager appealed the ruling before the court of appeal. The court upheld the appealed ruling.
Decision