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Arbitrators to be appointed to liquidate firm in dispute

Court records showed that Mrs Khaleda A. filed a lawsuit before the Abu Dhabi Shariah Court against her husband’s heirs, demanding the liquidation of the Engineering Works Company of her late husband.

Subsequently, she claimed the assignment of two arbitrators to settle the dispute in line with the terms of the contract with which the company was first set up. The Abu Dhabi Shariah Court of First Instance dismissed the lawsuit due to the existence of the condition of arbitration in the contract when a dispute arises.

Khaleda contested the verdict with the Abu Dhabi Shariah Court of Appeal, which annulled the previous verdict, and referred the case to the court that gave the previous ruling look into it afresh.

Khaleda, however, approached the Supreme Federal Court, claiming the verdict of the lower court to be null and void, on the grounds that litigation, according to the terms of the contract is to be settled through arbitration.

Therefore, the Court of First Instance turned down the petition. Yet, the Court of Appeal overruled that judgment, and referred the case again to the very lower court.

The apex court dismissed the plea, and upheld the verdict of the lower court, confirming the authority of the Court of First Instance to assign two arbitrators for the liquidation of the company.

• UAE