Lawsuit by company partner dismissed

DUBAI — The Dubai Court of First Instance has dismissed a lawsuit seeking a direction to seven defendants to pay Dh327.8 million to Sulieman Abdul Wahab Ahmed, joint owner of Pico International, who alleged that they had deceived him about the company's profits and deprived him of his rightful share of the same.



By Mohsen Rashid

Published: Thu 10 Aug 2006, 9:47 AM

Last updated: Sat 4 Apr 2015, 6:07 PM

According to the court records, the public prosecution had referred in 2003 defendant Singh Chia in his capacity as General Manager of Pico International Co. and six others — Pico Art BTI Image owned by James Chia and represented by Singh Chia, Huston in his capacity as Manager of Pico International, Gregori Chia, another Manager of Pico International, besides Pico International in Dubai, its owners and manager Singh Chia, World Image, its owners and manager and Pico International Middle East. The complainant asked the court to order them to jointly pay Dh 30 million in financial and moral compensation.

He also demanded that the court delegate an accountant to calculate profits generated by World Image and Pico International in Dubai from the date of their establishment under the management of the first defendant Singh Chia.

In his case, the claimant Sulieman said that he owned 50 per cent of Pico International, while the second defendant Pico Art BT held 49 per cent. They both appointed the first defendant Singh Chia, third defendant Huston and fourth defendant Gregori as managers and later deputised Singh Chia as the General Manager of the company.

Sulieman said that he and his partner were surprised that the first, second, third and fourth defendants had told them that the company was sustaining losses and borrowed from him Dh188,980 which they didn't re-pay.

Later, he was shocked to learn that the company was making profits in millions. But when he asked them to give him his share from profits, they began to deceive and cheat him.

According to him, the defendants set up two companies-Pico International, Dubai (the fifth defendant) and World Image (the sixth defendant). They also transferred projects of Pico International to the other two companies Pico International Dubai and World Image. He also claimed that they made a fake sale of the assets of Pico International to World Image for a nominal value.

He also accused them of transferring the leasing contracts of the company's stores along with its phones and faxes to Pico International Dubai and World Image. They also allegedly took Dh9 million as management fees without prior agreement.

He claimed that the first defendant Singh Chia had taken Dh3 million as additional wages and therefore he demanded the court to compensate him after the third and fourth defendants went missing. He furnished the courts with a file of documents.

Advocate of the defendants Samir Jafaar told the court that the claimant Sulieman has no capacity in the lawsuit and as a partner has no right to claim anything on behalf of or in favour of the company.

On July19 last, the court decided not to accept the case because the claimant has no capacity to file it. It said the company is now under receivership.


More news from
A Mark of Excellence

Supplements

A Mark of Excellence

Reputed aftermarket suppliers for commercial vehicle components, BorgRollsWarner (BRW), is on top gear to showcase its extensive product range and tap into new markets

Supplements2 hours ago