GCC Real Estate Company Wins Lawsuit Against Bahraini Company for Unpaid Rent

TDT | Manama     

The Daily Tribune – www.newsofbahrain.com

A GCC-based real estate company has successfully secured a court ruling against a Bahraini company, compelling them to pay overdue rent amounting to 35,000 Bahraini Dinars. The Bahraini company, which has closed its branch in the Gulf state, continues to operate in Bahrain.

According to lawyer Aqeela Mohammed Jassim, the GCC company had leased property to the Bahraini company for its branch in the GCC state. However, the Bahraini company failed to pay its rent, prompting the GCC company to seek legal recourse. The court ruling ultimately resulted in the termination of the lease agreement and the obligation of the Bahraini company to pay the outstanding rent.

Jassim explained that she approached the Civil Court in Bahrain after obtaining an enforceable judgment from the GCC state. She presented evidence to the court that the Bahraini company, despite closing its branch in the GCC state, remained operational in Bahrain.

The court's decision was based on Article 252 of the Code of Civil Procedure, which allows for the enforcement of foreign judgments in Bahrain if certain conditions are met. These conditions include the judgment being issued by a competent court under international jurisdiction rules and its finality according to the law of the issuing country.

The court further emphasised that the parties involved in the case were properly represented and that the judgment was final according to the law of the GCC state. It also confirmed that the judgment did not contradict any previous rulings by Bahraini courts and did not violate public order or morality in Bahrain.

The court clarified that the law does not require a specific format for the judgment document to be deemed enforceable. Instead, it focuses on ensuring the judgment has attained finality, making it legally binding and enforceable.

The court also referenced the GCC Agreement on the Enforcement of Judgments, which states that judgments issued by courts in one GCC member state are enforceable in other member states if they are enforceable in the issuing state.

"The procedures for enforcing the judgment are governed by the law of the state where enforcement is sought. The court's role in this scenario is to verify that the judgment meets the conditions outlined in the agreement and to take necessary steps to make it enforceable, as if it were issued by the courts of that state," the court ruling stated.

Based on these legal principles, the court ruled in favour of the GCC company, ordering the Bahraini company to pay the outstanding 35,000 Bahraini dinars. The judgment has been given an enforceable status.