Kuwait, 26 September 2016
Mr. Amr Abdul Aziz Al-Muhareb Manager, Continuous Disclosure Department Capital Markets Authority State of Kuwait
Comment on the information published in Al-Qabas Newspaper on 26/9/2016
Dear Mr. Al-Muhareb, This is made with reference to Resolution No. (72) of 2015 concerning the Executive Regulations of Law No. 7/2010 on the “Establishment of Capital Markets Authority and the Regulation of Securities Activity” and its amendments, issued on 9/11/2015, and in accordance with Section 10 thereof (Disclosure and Transparency).
We would like to comment on the information published in Al-Qabas Newspaper, today’s issue dated 26/9/2016 and titled: “Suspension of Verdict Execution worth KD 65 M”. The newspaper stated that the Court of Cassation has issued a verdict suspending execution in favor of a bank, in dispute with Durrat Al-Dar Real Estate Company, over a Mortgage and Facilities Contract (Islamic Financing) at a maximum of KD 65 M (Private Contracts).
The verdict stated that withholding the execution of the challenged verdict is temporary until a decision is taken in the Challenge filed by Durrat Al-Dar Co. against the Bank, knowing that the Company’s attorney is Dr. Yousef Al-Harbash. The said contract stated in one of its clauses that the “provisions of the contract are subject to the Islamic Shariaa, keeping in mind that the bank is a conventional bank”. We would like to advise you that the published information is not correct. The subject of the lawsuit for which a verdict was issued by the Court of Cassation is “the invalidity of announcement of the executive document (contract) in the Sales lawsuit No. 135/2012”. There is no relation between this verdict and the contract content and clauses, noting that a verdict had been issued in favour of Gulf Bank by the Court of First Instance on 31/1/2015 confirming the debt due to the Bank, and was sustained later on by the Court of Appeals on 20/4/2015. Therefore, we would like to clarify, in this respect, that the verdict referred to above (subject of publication) was issued in favour of Gulf Bank by the Court of First Instance on 11/4/2016 stating the non-permissibility of hearing this case because a decision has
already been rendered under Case No. 2623/2014. Such verdict was also sustained by the Court of Appeals on 19/6/2016. The decision issued on 25/9/2016 by the Court of Cassation is temporary pending a final decision for the subject of Cassation, noting that there is no financial impact on Gulf Bank as a result of the same.
Moreover, we have advised KSE of the above. Best regards
César González-Bueno
Disclosure and Transparency Section
Lawsuits Disclosure Form Date:
26/9/2016
Listed Company:
Gulf Bank K.S.C.P.
Case No.:
701/2016 Commercial/First Instance
Case Subject:
Invalidity of announcement of the executive document (contract) in the Sales lawsuit No. 135/2012
Ruling Date:
Verdict of Court of First Instance: 11/4/2016 Appeal Verdict: 19/6/2016
Issuing Court:
Court of Cassation’s Decision
Litigant Parties
Durrat Al-Dar Real Estate Co. & Gulf Bank K.S.C.P.
Ruling in favour of:
Gulf Bank before the Court of First Instance and the Court of Appeals
Ruling of First Instance
Non-permissibility of hearing this case because a decision has already been rendered under Case No. 2623/2014 in favour of Gulf Bank
Ruling of Appeals
Dismissal of and sustaining the verdict in favour of Gulf Bank
Ruling of Cassation
No decision has been made for the cassation, the execution hearing has been suspended pending a final decision for the case
Impact expected on the
No financial impact resulting from the decision by the
company as a result of ruling
Court of Cassation
