SCA 1314/2019 issued on 12/06/2019

This case involved a breach of a partnership agreement where profits had not been paid. The claimant failed to attend the hearing but the defendant provided evidence that the company had made losses and there were insufficient assets to cover the debts.

Background

A claimant filed a case against a defendant before the court. He said that he paid 50000 Riyals to become a partner with the defendant in a company in exchange for 10% of the profits. He said that the defendant had ailed to commit to his obligations. He requested the court to order the defendant to pay him the amount and the profits.

The defendant claimed that the company he had established had made losses and that the goods in the store were not sufficient to cover the company’s debts.

Decision

The court said that the case documents revealed that the claimant had failed to attend the court hearings. The court said that the defendant provided the court with the documents that prove his claims.

The court dismissed the case.

The claimant made an objection to the ruling.

The court dismissed the objection.

The Court of Appeal – Riyadh upheld the ruling based on same grounds.