Decline in cases due to easing of financial crisis and Amlak's improved liquidity
The number of cases filed against Amlak since the beginning of this year did not exceed five, said Mohammed Khamis Bassiouni, the judge who heads the judicial committee considering the company's disputes.
This is not more than a quarter of the cases brought against Amlak in 2009, he added.
He attributed the decline in cases to easing of the financial crisis and Amlak's improved liquidity enabling it to meet its contractual obligations.
Amlak had reached an agreement with investors to postpone implementation of projects, he added.
Judge Bassiouni said another possible reason for the drop in cases filed against Amlak could be the investors' fear of losing the case, especially in the light of the high fee of 30 per cent of the claimed amount plus lawyer's fees.
He said the committee was considering 150 cases since its inception in 2009 and 20 per cent of them have been amicably solved.
About half the verdicts went in favour of Amlak and the remainder in favour of investors, he said.
His Highness Sheikh Mohammed bin Rashid, Vice-President and Prime Minister of UAE and Ruler of Dubai, issued Decree No. 61 of 2009 which created a special judicial committee to hear cases filed against Amlak and Tamweel with the onset of the global financial crisis.
However, Resolution No. 27 of 2011 returned cases filed against Tamweel to the Real Estate Court of Dubai. According to this resolution, the judicial committee will hear only cases filed against Amlak.
According to Judge Bassiouni, the committee is currently considering 20 to 25 cases filed against Amlak. The committee is still receiving new cases against Amlak but only two to three every month.
He said in these lawsuits the investor usually request termination of the contract and return of the invested amount from Amlak. On its part, Amlak often asks the judicial committee to dismiss the case, citing the investor's unpaid instalments.
The duration of the litigation in most cases is two to three months before a verdict is issued, said judge Bassiouni.
Some cases last five to six months, particularly where an engineering expert's report on a project is needed.
The verdict of the judicial committee is final and may not be challenged in any other court.
© Emirates 24|7 2012
