Major contracting company ordered to pay BD50,000 to sub-contractor

TDT | Manama                

The Daily Tribune – www.newsofbahrain.com

The Sixth High Civil Court ruled to obligate a renowned contracting company to pay BD50,000, the value of a contract with another company under which the latter supplied the necessary labour for a major project.

As per the court documents, the contracting company had refused to pay the outstanding amount. Lawyer Essam Al Tayeb, agent of the plaintiff company, said that the contracting company signed an agreement with the defendant under which the plaintiff supplied labour to complete a major project.

However, the defendant refused to pay amounts that exceeded BD50,000. The attorney demanded payment of the outstanding amount in addition to 7% interest. While hearing the case, the Court ordered the assignment of an expert, whose report concluded that the defendant was late in paying monthly bills despite the plaintiff’s full commitment to supplying manpower, with cost of unpaid dues estimated at over BD50,000.

According to Article 1 of the Evidence Act, the creditor must prove obligation and the debtor must dispose of it. The contract is the law, and neither contracting party may revoke it or modify its provisions except within the limits of what is permitted by the agreement or dictated by law.

The contract and its provisions must be implemented in a manner consistent with good faith and honour. At the conclusion of the expert report, the Court declared the defendant to be indebted therewith and ruled in favour of the plaintiff receiving BD50,000.