Ayman shape
A Bahraini Arbitration Authority issued a final ruling obliging an Asian company to pay more than $ 506,000 to a Gulf institution, in a contractual dispute related to employment and maintenance services for a steam power plant in one of the Gulf cities, as well as delaying benefits, expenses and arbitration fees.
According to the lawyer and arbitrator Murad Al -Ahmad, the dispute is due to the conclusion of the contracts of supply services between the two parties in February 2014 and May 2016, where the investigative institution provided all the agreed services, including employment, maintenance, supply of equipment, food and housing for workers, but the defendant’s Asian company refrained from paying the financial dues, which prompted the institution to “file a lawsuit” in the year 2022, but The General Court stopped looking at the case due to the presence of the arbitration requirement in the contracts, and the dispute was transferred to international arbitration in Bahrain.
A jury consisting of three members was formed, where Al -Ahmad submitted documents that included service contracts, accounting reports, and a previous ruling issued by the State Court of State, obliging the ruled company against it to pay the “subcontractor” dues for the same services.
Despite the attempts of the Asian company to pay the lack of jurisdiction of the authority, the incorrectness of the notification, and the absence of its characteristic in the dispute, the arbitration committee rejected these defenses, stressing that the contracts included a clear arbitration condition, and the company did not deny its validity, or challenge it.
In its ruling, the commission relied on accounting reports and direct payments from the Asian Company, which is controlled against it to the subcontractor, which is an implicit recognition of the services provided.
The authority ruled to compel the company to pay 506 thousand US dollars or its equivalent in Bahraini dinars, in addition to delayed benefits of 5% from the date of the claim until complete payment, in addition to arbitration expenses and law fees.
