SACC 849/1443
This case involved a liquidation request against a company which had failed to pay its rent and failed to pay a payment order. A key point was evidence of available assets to pay liquidation expenses had not been provided.
Background
The agent of a trading and contracting filed a lawsuit against a Holding Company for non-payment of rent on a property. A judicial verdict was issued against them on 7/11/1440 AH. The trading and contracting company then applied for execution before the Jeddah Execution Court, but the company failed to pay. Under Article 92 of Saudi Arabia Cabinet Decision No. 264/1439 the Trading and Contracting Company filed a petition to commence liquidation proceedings against the other company because of its inability to settle its obligations.
Decision
The claimant company had not provide evidence of the existence of assets which were sufficient to cover the liquidation expenses. This constituted a failure to meet one of the conditions for commencing liquidation proceedings.
The court ruled to reject the petition to commence liquidation proceedings.