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19/10/2021
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Date:
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Al Mazaya Holding Co. K.S.C.P
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Name of the Listed Company
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297/2020 – Plenary real estate
32-56/2021 - Real estate appeal
401 /2021 Cassation Real Estate
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Lawsuit Number
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Two subsidiaries of Al Mazaya Holding Company in the United Arab Emirates had filed a lawsuit before the courts of the Emirate of Dubai with total claim amount of AED 57,876,880, which approximately equals KD 4.8 million as of May 31, 2020 against some investors for developing real estate projects in Dubai, in addition to claiming an estimated compensation including opportunity cost, extensive duplicated effort and punitive damages with total amount of AED 87,977,030, which approximately equals KD 7.4 million, in addition to the legal interest to be calculated on the claim at 9% rate from the date of the lawsuit filing until the date of the full settlement, as well as the payment of the fees and expenses and attorney fees.
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Subject of the Lawsuit
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19/10/2021
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The Court Judgement / Verdict date
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the courts of the Emirate of Dubai – Cassation court
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The name of the Court that issued the Judgement / Verdict
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Al Mazaya Emirates real estate development and Al Mazaya Real Estate FZ-LLC (subsidiaries)
- Granada Holdings Limited and Others
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Parties of the Lawsuit
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Al Mazaya Emirates real estate development and Al Mazaya Real Estate FZ-LLC (subsidiaries)
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The Judgment / Verdict in favor of
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The court ruled in presence that:
1- To dismiss the case against the fourth defendant – Osus United Real Estate group closed shareholding company, previously named Atheer Real Estate Development – for lack of capacity.
2- The Fifth defendant is obliged to pay to claimants an amount of AED 6,359,146.50 ( Six Million Three Hundred Fifty Nine Thousand One Hundred Forty Six Dirhams and Fifty Fills ) towards the outstanding amount for the project R022 till the date of 13- 5-2020 in addition to legal interest of 9% of the amount from the date of legal claim till the date of full payment.
3- The Second defendant is obliged to pay to claimants an amount of AED 7,137,777.65 ( Seven Million One Hundred Thirty Seven Thousand Seven Hundred Seventy Seven Dirhams and Sixty Five Fills ) towards the outstanding amount for the project R081 till the date of 13- 5-2020 in addition to legal interest of 9% of the amount from the date of legal claim till the date of full payment.
4- The first defendant is obliged to pay to claimants an amount of AED 6,283,927.81 ( Six Million Two Hundred Eighty Three Thousand Nine Hundred Twenty Seven Dirhams and Eighty One Fills ) towards the outstanding amount for the project R082 till the date of 13- 5-2020 in addition to legal interest of 9% of the amount from the date of legal claim till the date of full payment.
5- Refuse all others sought remedies, and obliged the First, Second, and Fifth defendants to beer all the claim cost and fees and One Thousand Dirhams as advocate fee.
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Court of First Instance Judgment / Verdict
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Accepting both appeals in form and rejecting their substance as well as confirming the verdict of the First Instance Court and obliging each appealing party with costs and attorney fees and confiscating the related insurance amount.
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Court of Appeal Judgment / Verdict
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The court ruled to refuse the cassation and obliged the cassation claimants to bear the legal cost and AED 2000 as the advocates fee with forfeiting the cassation deposit
(Which means confirming the appeal ruling that confirmed the ruling of the first instance court in favor of the subsidiaries companies)
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Court of Cassation Judgment / Verdict
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The Judgment is currently under execution by the subsidiaries and shall result in recognizing profits upon its execution that are equal to the adjudged amount of AED 19,780,852 Which is equivalent to approximately 1.62 million Kuwaiti dinars, in addition to the legal interest of 9% of the amount from the date of legal claim till the date of full payments in the form of reversing the related provisions for the claimed amount, which will be recognized in the company’s consolidated financial statements upon execution of the verdict and receiving the related amount.
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The expected financial impact on the company as a result of the Judgment / Verdict
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