Heirs of late labour supplier win BD21,243 in court after company refuses to pay

TDT | Manama

Email: mail@newsofbahrain.com

The heirs of a labour supplier who died before collecting payment for services have secured a BD21,243 court ruling, after a company refused to pay and argued the contract had no legal standing.

The case dates back to an agreement made while the supplier was alive, under which he provided workers for mechanical and civil works. The company accepted the terms, which included payment within 15 days of invoicing, based on attendance records signed by both parties.

The workers were supplied as agreed, but after the supplier’s death, the company stopped payment. The heirs filed a lawsuit, represented by lawyer Mohammed Al Mahdi, who presented signed timesheets and other documentation proving the workers had reported to the job site. A court-appointed accounting expert reviewed the records and confirmed the company owed BD21,258.

The court ruled in favour of the heirs, ordering the company to pay BD21,243 — to be distributed among the heirs according to their legal shares. It also directed the company to cover legal expenses and lawyer’s fees.

The company appealed, claiming the agreement was invalid because the supplier did not hold a Labour Market Regulatory Authority (LMRA) licence, as required for labour recruitment. It also alleged the contract was forged.

However, the Appeals Court dismissed both claims. It ruled that a clear business relationship existed between the two parties and that the dispute was over non-payment, not the validity of the arrangement.

As for the forgery claim, the court noted the company had failed to provide its own timecards, despite the expert basing calculations on them. The court rejected the appeal and upheld the original ruling, again ordering the company to pay the amount due.