SCA 1498/2019
This case involved an individual who had bought shares and paid money into a company for investment purposes. A key issue was the claim included unconnected matters as the shares were bought from the defendant but the investment was paid to the company.
Background
A claimant filed a case against a defendant before the court. He said that he had bought 40 shares from the defendant which constituted the latter’s share in a company. He said also that he had paid 5260000 Riyals to invest them in the company to the defendant who was the company’s manager. He requested the court to make the clearance and order the defendant to pay 5260000 Riyals.
Decision
The court said that Article 41 of Saudi Arabia Cabinet Decision No. 11/1435 stipulated that the case should not include unconnected requests. The court said that the case submitted by the claimant included unconnected requests. The court said that the case documents revealed that the claimant had paid the amount to the company and not to the defendant.
The court dismissed the case.
The Court of Appeal – Riyadh upheld the ruling based on same grounds.