SCA 783/2019
This case involved the non-payment of invested capital and profits. A key issue was the impact of the fact the defendant had used the money to invest in products to import into the country which had been refused entry by Customs as they did not comply with required standards.
Background
A claimant filed a case against a defendant before the court. They said that they had paid the defendant 280000 Riyals in order to invest. They said that the defendant had failed to commit to his obligations. The claimant requested the court to order the defendant to pay the capital and the profits.
The defendant said that he had received the amount and that he had imported electronic appliances into the country but the customs department had blocked their entry because they did not comply with the standards.
Decision
The court said that the case documents revealed that the defendant had already confirmed that he had received the mentioned amount. The court said that the defendant had failed to invest the mentioned amount properly because he had imported appliances that did not comply with the standards.
The court ruled that the defendant should pay the claimant 280000 Riyals.