BCC 507, 555, 565/2019

This case involved disuse of money invested to establish a new company. Key issues included the liability of the directors and whether individual partners could file a case themselves.

Background

A claimant filed a case against defendants to pay 6000000 Dinars and interest. They said that they had participated with a share of 20% in the first defendant (company) in a company (second defendant). They said that the third, fourth and fifth defendants had borrowed 8500000 Dinars to finance the company but they had used half of the loan to finance the first defendant and caused damage for the newly-established company.

The court ruled that the defendants should pay the claimant 40000 Dinars.

The disputed parties appealed the ruling before the court of appeal. The court amended the appealed ruling and ruled that the first, third and fourth defendants should pay the claimant 758000 Dinars in addition to 5000 Dinars.

The disputed parties appealed the ruling before the court of cassation.

Decision

Appeal No. 507