Court Orders Liquidated Company to Pay Freight Forwarder BD 12,066

TDT | Manama

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The High Civil Court has ordered a well-known company under liquidation to pay a freight forwarding company 12,066.593 Bahraini dinars for unpaid services, according to lawyer Fadhl Al Amari.

Al Amari explained that the case involved the defendant company (a well-known company now under liquidation) commissioning his client, the freight forwarding company, to handle customs clearance for its goods over three months. His client completed the work without issue, resulting in an outstanding payment of BD 12,066.593. However, the defendant company refused to pay.

Al Amari added that the owners of the defendant company had placed it under liquidation, with the process still ongoing. The second defendant in the case is the liquidator.

The court's judgment detailed that after investigation and witness testimony, it was established that a verbal agreement existed between the plaintiff (the freight forwarding company) and the defendant, whereby the plaintiff handled customs clearance for the defendant's goods shipped from Bahrain to Saudi Arabia. Witnesses confirmed the defendant had made partial payments, leaving an outstanding balance of BD 12,000.

Witnesses for the defendant testified that the company owners had indicated they would pay any outstanding amounts owed. However, the defendant had not settled the debt even after the commencement of liquidation proceedings due to existing debts. They noted that the amounts mentioned in customs documents represented invoices issued by the defendant to the plaintiff.

The court concluded that the evidence proved a contractual relationship existed, with the plaintiff completing customs clearance and freight transport. Given the defendant's failure to pay the BD 12,000 after liquidation began and the lack of objection from the company owners regarding payment, the court ruled in favour of the plaintiff. The court considered the plaintiff's account statement, which corroborated the outstanding amount, confirming the defendant's liability and ordering payment.