Al-Gassim Investment Holding Company announces the issuance of a final judicial ruling (from the Court of Appeal) in its favor in a financial claim lawsuit against a former board member (Abdullah Al Mahwas).

Al Gassim Holding Investment Company authorized its former Board Member, Mr. Abdullah bin Ibrahim Al-Mahwas, to complete the procedures for issuing title deeds relating to two agricultural land allocations located within the agricultural project owned by the company in Al-Jouf Region. This authorization was granted in fulfillment of the obligations stipulated under the agreement for the sale of the project to the purchasing company, Fakieh Farms Poultry Company.

A financial remuneration was approved for him, payable in stages according to the progress of the assigned tasks, with the remaining balance of the remuneration to be paid upon the final transfer and delivery of the project. However, based on his written undertaking to complete the issuance procedures for the title deeds of the two agricultural allocations and finalize the transfer of ownership to the purchaser, the remaining amount of the remuneration, totaling SAR 200,000 (Two Hundred Thousand Saudi Riyals), was paid to him.

Subsequently, and without the company’s knowledge, it was discovered that after successfully completing the issuance procedures for the title deeds of the two agricultural properties, and by virtue of the powers of attorney granted to him, the Defendant transferred ownership of the two properties into the name of a former employee of the company. Thereafter, the said employee re-transferred ownership of one of the properties to the Defendant, Mr. Abdullah Al-Mahaws, while retaining the other property in his own name.

As a result, the company was unable to obtain possession of the two properties and transfer them to the purchaser, Fakieh Farms Poultry Company, nor receive their purchase price amounting to SAR 3,880,000 (Three Million Eight Hundred Eighty Thousand Saudi Riyals), except through legal proceedings initiated against the Defendant. Final and conclusive judgments were ultimately issued confirming that the ownership of the two properties belonged to Fakieh Farms Poultry Company.

Accordingly, the Defendant’s actions constituted a breach of his obligations regarding the two properties and invalidated his entitlement to the remaining remuneration amount of SAR 200,000, which had been disbursed to him. This is particularly so given that, prior to the initiation of the legal proceedings, he had represented to the company that the procedures for the issuance of the title deeds had not yet been completed and required additional time and financial requirements, whereas it later became evident that the title deeds had already been issued and disposed of at that time. Furthermore, after the legal proceedings were commenced, he disputed the ownership of the properties despite having already received remuneration for completing the title deed procedures and undertaking to transfer them to the purchaser.

In order to safeguard its rights, the company filed a legal action against the Defendant, the former Board Member, seeking an order compelling him to reimburse the amount of SAR 200,000 on the grounds that he was not entitled to such amount, having failed to perform the obligations for which the payment was made. Rather, it was established that he had caused damage to the company by delaying its receipt of the purchase price of the two properties from the purchaser.

A reasoned judicial judgment was issued finding that the Defendant had failed to prove fulfillment of his obligations and that the transfer of the properties was ultimately effected pursuant to judicial rulings. The judgment was upheld by the Al Gassim Court of Appeal, ordering the Defendant to repay the full claimed amount on the basis that he was not entitled thereto. The company will proceed with the necessary legal measures to enforce the judgment against the Defendant.