BCC 409, 490/2015

This case involved the breach of a bank of a contract to finance property. A key point was whether the contract should be treated as a tenancy agreement or a loan agreement.

Background

A company filed a case against a bank before the court. The company requested the court to order the bank to pay 8647382 Saudi Riyals. The company stated that they had agreed with the bank on buying a property in Saudi Arabia and that the bank had agreed to finance this deal but it failed to do so.

The court said that the consideration of the case did not fall under its jurisdiction and refer it to the Bahraini Chamber for the Settlement of disputes. The chamber ruled that that the bank should pay 14374482 Saudi Riyals.

The bank and the company appealed the ruling before the court of cassation.

Decision

Appeal No. 440/2015:

The bank said that the appealed ruling had erred in the application of law. The bank said that the company had violated the conditions of the contract signed between the two parties.