Flat delay costs firm BD80,000

TDT | Manama

Email: mail@newsofbahrain.com

Failing to hand over a flat for more than three years has landed a well-known construction company in hot water.

The High Civil Court rescinded the sale agreement and ordered the firm to repay BD75,000 to the buyer, along with BD5,000 in damages and case expenses.

The court ruled that the deal was a sale contract, not an investment, and said the company’s attempt to present it otherwise breached Central Bank of Bahrain rules.

The case involved a Gulf national who paid BD75,000 for a unit that was due to be delivered in 2022. The handover never took place. Court papers showed the property was burdened by debts, seizures, mortgages and other restrictions, while the contract itself contained a penalty clause for delay. The buyer argued he lost expected income as a result.

Lawyer Maryam Al Khaja, representing the buyer, asked the court to cancel the sale, place a provisional notation on the property until a final ruling, order repayment of the sums paid and award BD5,001 as temporary damages, together with costs and legal fees.

The defence argued the arrangement was an investment rather than a sale. The court rejected this, noting that the firm is a limited liability company and cannot invest on behalf of others without a licence from the Central Bank of Bahrain. No such licence appeared in the file.

The judges added that even if the deal were treated as an investment, it would breach public-order provisions in the Central Bank law, some of which carry criminal penalties.

Concluding that the contract met the elements of a sale — including subject matter and price — the court annulled the agreement and ordered the company to refund the BD75,000, pay BD5,000 in damages, and cover expenses and legal fees.