SCA 4530131358/2024
The initial dispute involved the rescission of a construction contract and penalties for delay. A key issue was whether an arbitration clause meant the court lacked jurisdiction. Whether the challenge was outside the deadline was also considered.
Background
This case concerned a commercial dispute between two companies arising from a construction contract. The plaintiff engaged the defendant to perform contracting work valued at 701,500 SAR. The plaintiff asserted that the cost of executed work amounted to 158,567 SAR, of which 185,150 SAR had already been paid, leaving a balance of 516,350 SAR. The plaintiff requested the court to annul the contract, award compensation of 26,583 SAR, and enforce the contractual penalty of 160,000 SAR for delayed performance. The case primarily raised questions on contractual obligations, the enforceability of arbitration clauses, and the procedural requirements for asserting jurisdiction in commercial disputes.