SCA 2115/2019
This case involved money paid in cheques for profit in a company when no profit had been made and the company had gone into liquidation with a liquidator appointed. A key point was whether the case was filed by an irrelevant party.
Background
A company filed a case against a defendant before the court. The company said that the defendant had paid its manager 300000 Riyals in order to invest in a contracting project. The company said that the defendant had received cheques as a guarantee of the capital and the profits. The company said that the manager paid the defendant 400000 Riyals though the project did not make profits. The company said that it was put into liquidation and that a liquidator was appointed. The company requested the court to suspend the executive decision against it and to order the defendant to return the cheques.
Decision
The court dismissed the case because it was filed by an irrelevant party.
The legal representative of the company appealed the ruling before the court of appeal.
The court dismissed the appeal and upheld the appealed ruling.