Abu Dhabi Judicial Department (ADJD) received a final judgment in favor of a government agency. The Supreme Court ordered a company to pay 28,372,000 dirhams to the government for compensation for its failure to execute one of the major projects in the emirate. The court will pay the state agency six million dirhams worth of work done by the company before the withdrawal of the project, and refund the assets of the three guarantees provided by the company during the contract.
The company contracted with the Authority under a public tender to carry out construction work and set up an important project in the city of Abu Dhabi for 180 million dirhams, but the company stumbled in implementation after facing technical problems and technical difficulties caused by the biological nature of the project site. The contractor canceled the contract and decided to amend the contract by increasing the value of the project, which was rejected by the agency because it had already issued notices and instructions to the takers to inspect and inspect the location and surrounding areas before the awarding of the tender and to include a clause in the contract stating that the contractor is not entitled to claim any compensation Resulting in the quality of the soil, which led to the withdrawal of the project.
Accordingly, the company filed a lawsuit to claim AED 106 million in compensation for the losses it allegedly sustained as a result of the withdrawal of the project. In return, the Government Cases Department filed a counterclaim on behalf of the entity claiming AED 109 million for financial and moral losses sustained as a result of the failure The court of first instance ordered the government to pay more than six million dirhams, representing the value of the completed works, and compensation of 200,000 dirhams, in favor of the company. M supported by the Court of Appeal.
After challenging the judgment against the parties, the Supreme Court overturned the ruling and returned the case to the Court of Appeal for reconsideration. Subsequently, the Court of Appeal issued its ruling to cancel the appeal in its apartment, which entailed obliging the government to pay the plaintiff 200,000 dirhams in compensation, while supporting the preliminary ruling in the rest.
The Department of Governmental Affairs did not contest this ruling and challenged it for the second time on the basis of the rule that the contract is a "contract of contract" and that the quality of the soil is not considered an exceptional circumstance in its legal sense. This is what the court took into account. The court overturned the contested judgment and dealt with the issue in terms of the matter. The company committed to pay the amount of 28 million and 372 thousand dirhams for the benefit of the government body in compensation for losses incurred as a result of failure to implement the project. In return, the court ordered the government to pay six million dirhams worth of work performed by the company before the withdrawal of the project, Three provided by the company during the contract.
The company filed a claim to claim AED106 million for alleged losses.