Procedural defects void BD 10,000 compensation ruling

TDT | Manama

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A civil dispute between a company and a former employee concluded after Bahrain’s Court of Cassation upheld a ruling that annulled a lower court judgment ordering the employee to pay BD 10,000 to his former employer.

Sitting in chambers, the Court of Cassation ruled the company’s appeal inadmissible, effectively confirming an earlier judgment by the High Civil Court of Appeal. The appellate court had overturned the initial ruling on procedural grounds and found the case could not proceed due to res judicata, ordering the company to bear legal costs and fees.

According to the employee’s defence, represented by lawyer Hussain Salem, the client had worked part-time with the company on a commission-based arrangement and was also entrusted with handling certain legal and financial transactions on behalf of the business.

The company later alleged financial discrepancies and accused the employee of misappropriating funds and assets, including cash and cheques. An accounting expert report was commissioned, estimating losses at around BD 10,000, which formed the basis of a civil claim that initially resulted in a judgment against the employee.

The defence argued that the employee was not properly notified of the proceedings or the judgment and only became aware of enforcement action approximately one year later, after the appeal deadline had expired.

Lawyers also maintained that the matter had already been addressed in criminal proceedings, where the employee was acquitted of embezzlement. They argued that the criminal ruling carried res judicata effect, preventing the civil courts from revisiting the same facts.