Court rejects compensation lawsuit

The Third High Civil Court has rejected a lawsuit filed by an electrical contracting company against a commercial and technical services company demanding it to pay BD127,000 in compensation for an unfinished project.

According to lawyer Nada Adil, her client, the technical services company, had previously contacted the other company as per the contract worth BD127,000. However, Ms Adil said that the defendant’s company did not honour the contract which was terminated by the plaintiff’s company to avoid any financial losses. The court assigned an expert to assess the financial value of the project both parties were working on and in his report, the expert estimated the value of project in the neighbourhood of BD140,000.

The defendant company reached out to the plaintiff to negotiate on the matter but the latter rejected any attempts of negotiation and finally resorted to the court, which rejected the lawsuit as it contradicts with the arbitration procedures mentioned in the contract.