Type:	Judgment
Case Number:	7200
Source:	Commercial Court
city:	Riyadh
Summary:	By AI Case No. 7200 for the year 1442 AH concerns a lawsuit filed by (...) against (...), in which the defendant company is demanded to pay its share in (...), amounting to 22,719,533 Riyals plus 7,280,467 Riyals, pursuant to an acquisition contract concluded on March 30, 2019. The plaintiff asserts that the defendant failed to fulfill the payment obligation despite having access to the company’s documents. During the preparatory hearing via Microsoft Teams, the court’s jurisdiction was confirmed, but...

Praise be to Allah, and peace and blessings be upon the Messenger of Allah. To proceed:
In the Fifth Commercial Circuit and based on Case No. 7200 for the year 1442 AH

Filed by/ (...) Commercial Registration (...)
Against/ (...) National ID (...)

Judge Youssef bin Abdulrahman Al-Mashari as President
Judge Mamdouh bin Mohammed Al-Almaei as Member
Judge Anas bin Ibrahim bin Abdulaziz Al-Muajil as Member

The Facts

(Facts)
The facts of the case are summarized as follows: The plaintiff agency submitted a statement of claim stating: (A takeover contract was previously concluded on 30/3/2019 for the company Al-Bu'd Al-Mutawwar for Information Technology, a limited liability company with a capital of twenty million riyals, in partnership with the defendant and some other partners. Since the defendant did not commit to paying the value of his share in the company according to the agreement and procrastinated, I request that he be obligated to pay the value of his share as stipulated in the contract to complete the procedures for transferring the shares to us as new owners of the company, as his share is estimated at 22,719,533 riyals. He also committed to paying 7,280,467 riyals according to the attached takeover contract, as the defendant had previously reviewed all the documents of the acquired company and discussed with its previous owners. Based on that, he signed the takeover contract but did not commit to paying his share in the company. Article 7 of the Companies Law states that each partner is considered indebted to the company for the share he committed to, and if he delays in providing it beyond the specified deadline, he is responsible to the company for compensating the damage resulting from this delay. The distribution of shares based on the contract concluded between the parties was as follows: (...) 60% (...) 15% (...) 15% (...) 10% 30/3/2019 is the date of the right's inception. He demanded that the defendant be obligated to pay the share he committed to in the company, estimated at 22,719,533, in addition to 7,280,467, a total of twenty-two million seven hundred nineteen thousand five hundred thirty-three riyals, plus seven million two hundred eighty thousand four hundred sixty-seven riyals). After registering the statement of claim with the aforementioned number, a hearing was held on Monday, 4/11/1442H, in which: (In this session held via Microsoft Teams, the panel indicated that it opened this preparatory session, and the plaintiff's agent/(...) ID number (...) attended by virtue of agency number 423016301 dated 20/9/1442H, and the defendant attended in person. Based on Article 90 of the Implementing Regulation of the Law of Commercial Courts, the panel informed the parties that this case falls within its judicial jurisdiction based on Article 16 of the Law of Commercial Courts. As for the formal matters, it was found by the panel that there is a reason preventing the consideration of the case, and therefore the panel decided to adjourn the session to rule on that.