ECC 2049/2001

This case involved payment of an amount owed as a company was going into liquidation. The key point was that litigation procedures had not been properly followed as because the claim statement was not delivered to the defendant's personal address but to his medical clinic which had nothing to do with the conflict.

Background

A company's shareholders filed a case before Tanta Court of First Instance against one of their associate requesting him to pay his part of a debt of 100,000 Egyptian Pound in line with an agreement between them as the company was going into liquidation.

The Court of First Instance rejected the claim, but the plaintiffs filed an appeal and the Appeal Court canceled the Court of First Instance's ruling and requested the defendant to pay the shareholders 100,000 Egyptian Pounds.

Decision

The defendant filed an appeal in cassation on the ground that the plaintiff had informed him of the statement of claim at his medical clinic even though he did not live there and the Court of First Instance had ignored this important procedure had been done illegally.