Court orders Bahraini firm to pay BD46,000 in freight dispute

TDT | Manama

Email: mail@newsofbahrain.com

ABahraini firm has been ordered to pay BD46,031.320 to a shipping company for unpaid freight charges, with interest and legal costs awarded.

The High Civil Commercial Court found the company had failed to settle six invoices for air cargo services between Bahrain and the United States.

These shipments took place between 2021 and 2024. Although a portion was paid, the remainder remained unsettled.

Outstanding sum

The court ruled the company must pay the outstanding sum, along with 4 per cent annual interest until full repayment, and BD200 in legal fees.

The shipping company, represented by lawyer Mohammed Madwar, said it had carried out the shipments under six airway bills.

Invoices were issued, and goods were delivered, but payment did not follow.

When the debt remained unpaid, the claimant filed a case.

Claim

In addition to the main claim, the claimant sought to hold two company partners personally liable.

It argued both men, authorised to act on the firm’s behalf, had taken on financial obligations far beyond the company’s BD5,000 capital, knowing it could not cover them when due.

On this basis, the claimant asked the court to apply Article 18 bis of the Commercial Companies Law and make them jointly liable with the company, along with 10 per cent annual interest for the delay.

Liability

The court dismissed this. It said liability of partners in a limited liability company is not presumed. It must be proven.

The law requires clear evidence of a breach or misuse that directly results in the debt. None was shown in this instance.

It added that the law sets out a list of specific conditions where a partner may be held personally responsible through their private assets, such as fraud, concealment of losses or unauthorised decisions.

Evidence

These must be supported by evidence. As no such conduct was demonstrated, the request for joint liability was rejected.

The unpaid debt was established, but the attempt to hold the two men personally liable was not.

The company must now settle its dues. The remainder of the claim was thrown out.