DCC 315/2011/1

This case involved the validity of a provisional seizure on a guarantee for construction work. The certificate of completion issued by the consulting engineer was proof the work had been completed.

Background

On 7/7/2009, an Appellant and a Respondent signed a service contract for the construction of a project worth 313 million AED. A letter of guarantee was issued by the bank with a value of 10% of the project to ensure proper execution. The Respondent executed all his obligations but the Appellant breached his obligations which led the Respondent to request a provisional seizure on the bank guarantee. An order on a petition was issued under No. 37 of 2011 imposing the provisional seizure of the letter of guarantee.

Accordingly, the Appellant submitted grievance No. 37/2011 requesting the cancellation of the provisional seizure on the basis that the Respondent did not carry out the work as agreed on in contract between the parties and was late in the execution of the work.

Proceedings:

Court of first instance - Decision dated 7/4/2011:

The court of first instance cancelled the order of the provisional seizure The Respondent appealed.

Appeal Court - Appeal No. 52/2011 - Decision dated 17/8/2011: