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14 April 2024

Court dismisses petition against Nakheel

Picture used for illustrative purposes only. (FILE)

By Staff

An application by Paramount International Trading, Diamond Developers and Fares AbuBaker has been dismissed by the Special Tribunal relating to Dubai World, Nakheel said.

The application asked for an urgent hearing to deal with an allegation of contempt of court by Nakheel on the basis that it had not complied with a previous court order following a hearing in December 2010.

It was alleged that Nakheel had continued to charge interest on delayed payments relating to certain Nakheel developments
notwithstanding that a settlement agreement had been entered into between the parties. The tribunal dismissed the application on the grounds that issues relating to interest payments had not been decided at the previous hearing.

A Nakheel spokesperson said that previous press reports about this case based on information from the claimants "were not accurate as they had suggested that the tribunal decided interest payments were not payable on outstanding sums due”.

“Thursday’s decision shows the inaccuracy of those previous press reports because the tribunal has confirmed that such issues were never dealt with in the previous hearing," the spokesperson said, adding that any application to prevent Nakheel from charging contractually agreed interest on outstanding payments would be strongly contested.