SACC 2359/2021
This case involved a claimant who had requested the commencement of liquidation proceedings. Key issues included that multiple requests without a link had been included together and the connection not properly explained.
Background
A claimant filed a request to the court to commence liquidation proceedings against the defendant and appoint a trustee to manage the defendant's commercial activities. He also requested among other things restrictions on the defendant's ability to deal with funds and assets.
The court stated that Article 20 of Saudi Arabia Cabinet Decision No. 511/1441 stipulates that multiple requests could not be combined in one lawsuit unless there was a link between them.
Decision
The court said that the case documents had revealed that the claimant had combined the request for liquidation with a request to hold the defendant accountable for any manipulation, embezzlement of funds, mismanagement of assets, and other matters. The court said that the claimant had failed to specify the connection between these requests as required by Article No. 77 of Saudi Arabia Cabinet Decision No. 622/1439 .
The court dismissed the case.