KCC 1178/2020
The initial dispute involved a sale of an usufruct right in a hotel in Saudi Arabia where there had been an agreement that the company would rent back the property for five years but had failed to pay the rent for the whole period. A key issue was the capacity of the defendant and if the company they represented could be made to pay rent. The fact the legal representative had filed the appeal in their own name not that of the company was also considered.
Background
A claimant filed a case against a defendant, the legal representative of the company with which he had signed a contract, before the court. He requested the court to dismiss a disputed tenancy agreement and order the defendant to pay him 23482 Dinars. He said that the company had sold him the usufruct right in a residential unit located on one of the hotels in Saudi Arabia for 19 years. He said that the company then agreed to rent this unit from him for five years ending in 2019 but they only paid rent for two years only.