Manager must pay Dh13m in firm’s dues

DUBAI — The Dubai Court of Cassation challenged a verdict issued by the Court of Appeal yesterday. The appeal verdict stated the rejection of a lawsuit, but the Court of Cassation annulled this verdict and upheld the verdict of the Court of First Instance, which previously ordered Saleh Mohammad Ahmad Al Amoudy to pay Dh13,062,605 plus 5 per cent annual interest to Al Ettihad Energy Co. (plaintiff).

By A Staff Reporter

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Published: Mon 13 Mar 2006, 10:37 AM

Last updated: Sat 4 Apr 2015, 7:29 PM

The case unfolded when Al Ettihad Energy Company filed a lawsuit against Al Amoudy, after the later issued nine cheques amounting to the demanded amount, as payment for some dealings between them, but when the plaintiff went to cash the cheques, they discovered that there were no sufficient assets to cover the amount of the cheques, and he refused to pay his debt in spite of the requests by the company. The plaintiff company had no choice but to bring the matter to the courts, which sentenced the man to a three-year-jail term and referred the civil case to the Civil Court to decide. The plaintiff’s lawyer, Attorney Sameer Jafar, proceeded with the lawsuit and demanded that Al Amoudy be forced to pay the amount.

The Court ordered the defendant to pay the amount, but he appealed against the verdict. The verdict of the Appeal Court was based on the fact that Al Amoudy signed these cheques on behalf of the Eastern Company Fuel Trade, as he was the General Manager of the company. The demanded amount was the cost of supplying diesel gas oil. The court was satisfied that the defendant was not responsible as an individual to fulfil the payments.

Meanwhile, lawyer Sameer Jafar and his client (Al Ettihad Energy) did not accept the verdict, so they filed an appeal before the Court of Cassation, arguing that the law hold the representative who issued and signed cheques of the actual owner, as responsible as the owner (company) in fulfilling the payments upon demand. The Court of Cassation decided yesterday to annul the verdict, and uphold the verdict issued by the Court of First Instance, which ordered Al Amoudy to pay the amount to Al Ettihad Company.

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