Amlak says legal claim demanding contract termination, SAR 430 mln compensation preliminary ‘dismissed’

Logo of Amlak International for Real Estate Finance Co.

Amlak International for Real Estate Finance Co. said the Committee for Banking, Financial Disputes and Violations issued an initial verdict today, Oct. 10, dismissing the case, filed by a client against the company in December 2021, demanding a contract termination and indemnity, according to a bourse filing.

Amlak indicated that the initial verdict can be appealed by the plaintiff within 30 days from its issuance. The right to object will be forfeited if the plaintiff does not file an objection within the statutory period.

There is no relevant financial impact and any related developments will be duly revealed, the statement added.

In January 2022, Amlak said that a client filed a legal claim against the company on Dec. 20, 2021, demanding contract termination and indemnity. The plaintiff company is a client of Amlak, which secured financing of SAR 80 million under an Istisna’a contract to build a residential tower.

The plaintiff claimed that Amlak breached the contractual obligations and requested to terminate the contract. It also claimed that Amlak is not entitled to the land ownership and filed for SAR 430 million in compensation, including SAR 113 million worth of losses it incurred, SAR 311 million in unrealized profit and SAR 5 million in attorney fees, Argaam earlier reported.