Praise be to Allah, and peace and blessings be upon the Messenger of Allah. As for what follows:
Before the Thirteenth Commercial Circuit and based on Case No. 439329306 for the year 1443 AH
Plaintiff:
(...) (...)Defendant:
(...)
Praise be to Allah, and peace and blessings be upon the Messenger of Allah. As for what follows:
Before the Thirteenth Commercial Circuit and based on Case No. 439329306 for the year 1443 AH
Plaintiff:
(...) (...)Defendant:
(...)
Facts:
The facts of this case, as derived from the submitted documents and to the extent necessary for its resolution, are that the plaintiff agency submitted a statement of claim to the Commercial Court in Riyadh, stating: "The plaintiff, in his capacity as a partner, files against the defendant, in his capacity as a partner in the company (...) which is a Saudi joint venture company located in (Riyadh), where it was agreed with the defendant that I would be a partner with a capital of (3,300,000) three million three hundred thousand Saudi Riyals, with a share of (33%), and this partnership was established by a written agreement from the date 09/03/1437 AH, corresponding to 20/12/2015 AD, until 16/07/1443 AH, corresponding to 17/02/2022 AD. The company, the subject of the case, is not under liquidation and no bankruptcy proceedings have been initiated, noting that the right subject to the claim arose on 20/03/1437 AH, corresponding to 31/12/2015 AD, and arose due to the following commercial relationship: 1/ Payment of the capital amounting to two million nine hundred thousand Saudi Riyals, based on the partnership contract, 2/ The defendant's responsibility for (accumulated losses), on 20/03/1437 AH, corresponding to 31/12/2015 AD, which resulted in (the defendant's failure to pay the remaining share of their capital, resulting in accumulated losses, therefore I request to obligate the defendant to: 1/ Pay the capital for the following reasons: (based on the partnership contract), assume responsibility and compensation amounting to (7,465,174) seven million four hundred sixty-five thousand one hundred seventy-four Saudi Riyals", and for the purpose of hearing the case, the chamber scheduled a session on 23/09/1443 AH. The chamber indicates that it opened this preparatory session, and the plaintiff's agent attended: (...), under agency number (433275615), and it was found that the defendant did not attend despite her manager being notified via electronic notification number (154019651). To verify what is stated in Article (90) of the Implementing Regulation of the Law of Commercial Courts, and upon reviewing the statement of claim, it was found to be unedited, so the chamber informed the plaintiff's agent to edit her claim, and she submitted a memorandum stating: "A joint venture company was established between our client and the defendant (...) under the name (...) with a capital of (10) million Saudi Riyals, with our client's share being (33%) equivalent to (3,300,000) Saudi Riyals and the defendant's share being (67%) equivalent to (6,700,000) Saudi Riyals. Our client committed to paying her full share, and the remaining value of the defendant's share is (2,900,000) Riyals. Accordingly, the company's operations commenced from its establishment date, and due to the defendant's failure to pay her share and obligations as a partner, losses amounting to (7,465,174) Riyals were incurred. Based on Article Ten of the partnership contract, which states (Distribution of profits and losses: Profits and losses are distributed between the parties based on each partner's share in the company), according to the legal accountant's report, our client demands that the defendant be obligated to: 1/ Pay the remaining value of her share amounting to (2,900,000) Saudi Riyals, 2/ Pay an amount of (7,465,174) Saudi Riyals, her share of the losses. Accordingly, the chamber found jurisdiction to hear this case based on paragraph 4 of Article 16 of the Law of Commercial Courts, and upon reviewing the case attachments and what is titled (Liquidation Report and Final Account), the chamber asked the plaintiff's agent about the company's status? She replied that it is still active, and when presented with the phrase (under liquidation) in the mentioned document? She stated that this document is from the legal accountant and requested time to consult her client and provide a response. The chamber also asked her about the partnership's start date? She requested time for that, so the chamber informed her that she must provide a response within 10 working days through the case requests and must submit all her evidence, to which she agreed. In a session dated 09/11/1443 AH, the plaintiff's agent (...) with national ID number (...) under agency number (435263768) attended, while it was found that no representative of the defendant attended despite being notified of the session date and link via notification number (159720912). The chamber then informed the plaintiff's agent that she must limit her claim to either completing the capital or bearing the losses, and she stated that she limits her claim to completing the capital amounting to (2,900,000) Riyals. When asked about her evidence for that, she mentioned that it is the final account issued by the legal accountant and the financial statements for all years, so the chamber informed her that she must attach the evidence with a statement of the basis for her claim within ten days, to which she agreed. In a session dated 02/01/1444 AH, held remotely via video call with the attendance of the plaintiff's agent whose details are recorded above, while it was found that the defendant or her representative did not attend according to notification number (166676576), the chamber indicates that the plaintiff's agent submitted via the case requests on 17/11/1443 AH what was requested of her, and given the case's readiness for resolution, the chamber decided to adjourn the session for deliberation and render judgment.