DCC 163/2007
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai, United Arab Emirates
Taxonomy
Limited Liability Partnership Accounts, Companies & Corporate Bodies, Types of Contract, Lending & Security, General Commercial Law, General Civil Procedure & Administration of Justice
Copyright
LexisNexis
Decision date
11 Sep 2007
Catchwords
Limited Liability Company – Establishment – Contract – Memorandum of Understanding – Debt – Commercial Transaction – Civil Transaction
This case involved a limited liability company which had not been set up as agreed in a memorandum of understanding. It also considered payment of debts and whether these should be considered as being covered by the civil transaction or commercial transaction law.
Background
Some Respondents had previously filed a lawsuit against the Appellants and another party (not represented in the current case) in order to oblige them to carry out their obligation to set up a new limited liability company agreed under a memorandum of understanding and in the case of their failure to do so, to oblige them to pay 4,176,000 AED provided for in Article VII of the Settlement Agreement of 7-8-2001.
The decision was in favour of an amount claimed and then amended to 1,742,869.44 AED in appeal No. 376 of 2003 to grant the Defendants 2,433,093.40 AED to restaurant people for the benefit of the Plaintiffs which would be deducted from the amount claimed.