SCA 861/2019 issued on 26/06/2019

This case involved the validity of an arbitration ruling when it was claimed by one of the parties they had not been informed of the appointment of the arbitrator.

Background

A legal representative of a factory filed a case against a company before the court. He requested the court to form an arbitration committee to consider a dispute between the two parties.

The court ruled that a committee of arbitration should be formed to consider the dispute.

The company said that the procedures were invalid because they were not informed of the appointment of the arbitrators.

The legal representative then requested the court to dismiss the ruling issued by the arbitration committee.

Decision

The court said that the case documents revealed that the arbitration committee had failed to settle the dispute between the two parties in violation to Article 40 and 41 of Saudi Arabia Royal Decree No. M34/1433.