Court Orders Eviction of Dolphin Gulf Company and Payment of BD 207,000 in Dues

The Capital Municipality has carried out the eviction of Dolphin Gulf Company from its premises on the eastern coast following a ruling issued by the High Civil Court. The site, including its facilities and fixtures, was officially handed back to the Municipality in good and usable condition.

The court also ordered the company to pay BD 207,000 as compensation for outstanding usufruct fees covering the period from March 21, 2022, until the judgment date of June 30, 2025.

The case began when the Capital Municipality filed a lawsuit demanding the company vacate the property and settle overdue rental payments. The Municipality had signed a usufruct contract with the company in January 2019 for a five-year term, with a monthly fee of BD 4,900, subject to a 20% increase every two years. In the final year, the monthly fee rose to BD 5,880.

When the contract expired in 2023, the Municipality declined to renew it. However, the company refused to vacate the premises. Although its representative acknowledged the debt and pledged to pay the dues, the settlement was not accepted, leading to the court case.

In its ruling, the court emphasized that under Bahraini law, contracts are binding on both parties and must be executed in good faith. The law further stipulates that a lease ends automatically upon expiration unless both parties agree otherwise.

Court documents confirmed that the usufruct contract expired in 2023 and clearly stated that renewal was not automatic. Any renewal required a new written agreement, with the tenant submitting a request at least three months before the contract’s end. The Municipality had already notified the company nearly a year in advance of its decision not to renew, reaffirming that the property must be vacated and dues paid.

The court clarified that the Municipality’s previous approval of installment payments for the company’s debts did not constitute consent to renew the contract but was only a financial settlement.