SACC 208/1443
This case involved a request to initiate liquidation proceedings for a real estate development company. It was said the company had operated without a license. A key point was it was possible to reject a petition if the petitioner acted in bad faith or the petition was an abuse of process.
Background
A number of creditors of a Real Estate Development Company requested the initiation of liquidation proceedings for the company.
The Real Estate Development Company had conducted its activities without having a license.
Article 99 of Saudi Arabia Cabinet Decision No. 264/1439 stipulated that the court could reject a petition if the petitioner had acted in bad faith or if the petition involved an abuse of the process.
Decision
The petition to initiate liquidation proceedings for the Real Estate Development Company was rejected.