Page 58 - Q4-2024-EN

AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2023
(All amounts are in Kuwaiti Dinars)

During the year ended December 31, 2020, two subsidiaries of the group had filed lawsuits before the courts of the
Emirate of Dubai in the United Arab Emirates against some investors regarding the development of real estate projects
in the Emirate of Dubai in the United Arab Emirates. During the year ended December 31, 2021, the Court of Cassation
upheld the judgment issued by the Court of Appeal, which had previously upheld the judgment of the Court of First
Instance issued in favor of the two subsidiaries of the group about their entitlement to a total amount of AED 19,780,852,
in addition to the legal interest of 9% from the date of the judicial claim till full settlement, whereby the entitlement of
those subsidiaries including the legal interest until December 31, 2021 had amounted to AED 25,968,142 (equivalent to
KD 2,174,496) according to the latest calculations for that entitlement by the court, and hence, the management of those
subsidiaries had decided to reverse the provisions recorded in their books against their full entitled amount according
to the Court’s verdict including the legal interest up till December 31, 2021 which is reported as provisions no longer
required in the consolidated statement of profit or loss for the year ended December 31, 2021. The subsidiaries of the
group initiated legal execution procedures against those investors for the fulfilment of that verdict along with its legal
interest, which resulted in the collection of almost 82% from the total amount due to the two subsidiaries till December
31, 2023, whereas the remaining amount is currently under collection by the Group’s two subsidiaries in the United Arab
Emirates. As a result of those lawsuits, the defendants filed a counter-lawsuit against the Parent Company, the two
subsidiaries and others demanding for the payment of AED 261,026,454 (equivalent to KD 21,857,592) in addition to
the legal interest of 5% from the date of the judicial claim till full settlement, in addition to demanding payment of AED
50,000,000 (equivalent to KD 4,186,854) as compensation for lost profits. During the year ended December 31, 2023,
a court verdict was issued by the Court of First Instance in favor of the defendants (Parent Company, the two
subsidiaries, and others) to disregard this case because of the previous judgement in that case, and obligating the
plaintiffs to pay the deferred fees yet to be paid for that case. The plaintiff had appealed against the Court of First
Instance, and the case is still currently under hearing in front of the legal courts. The Group’s independent legal counsel
believes that the Group has a solid standing in those cases based on the ruling issued in the Group’s favor by the Court
of First Instance, and hence, no provisions were booked against those legal cases as of the date of the accompanying
consolidated financial statements.

During the year ended December 31, 2023, a final court verdict by Court of Cassation of United Arab Emirates was
issued to affirm the previously issued verdict against a subsidiary of the Group in United Arab Emirates with an amount
of AED 5,000,000 (equivalent to KD 418,685). The Group is currently in process of completing the settlement procedures
to the opponent against the related provisions that were previously booked in prior years for that legal case.

During the year ended December 31, 2023, some buyers of real estate units in one of the Group’s projects in the Emirate
of Dubai filed a lawsuit demanding to terminate the booking forms of the subject real estate units and to refund an
amount of AED 5,530,321 (equivalent to KD 463,093) in addition to legal interest of 9% till full settlement date. The
Group had recognized provision of KD 463,093 on conservatism basis against that legal case during the year ended
December 31, 2023. This case is currently under hearing in front of the legal courts as of accompanying consolidated
financial statements date.

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