03 July 2011
MUSCAT: Ali Redha Group has said that the recent enforcement of a court ruling directing BankDhofar to pay RO26.1 million is a culmination of six years of proceedings at various levels in the Omani courts.
The case is linked to a long pending dispute between Oman International Bank (OIB) and Ali Redha Group, who alleged to have been possessing 1.925 million shares of BankDhofar, which were pledged to OIB.
This was disputed by BankDhofar. Ali Redha Darwish commended the Omani judicial system, which ordered BankDhofar to pay the funds. "The Supreme Court judgment, originally issued in 2006, had not been enforced due to procedural objections from BankDhofar in 2009," Ali Redha Group said in a statement.
However, after six years of litigation and procedural measures, the Appellate Court ordered commencement of enforcement proceedings and this order has recently been upheld by the Supreme Court.
BankDhofar has, therefore, exhausted all legal avenues available to it for preventing enforcement although it is still contesting procedures. In light of the review by the judiciary, and the rejection of their procedural objections, the bank was ordered to pay the amount of RO26.1 million, which was calculated by court appointed experts and duly executed earlier last week.
It should be noted that about RO9 million of the enforced amount will go back to BankDhofar against their previous exposure to the Ali Redha Group, with most of the balance being paid to other banks after settling Oman International Bank's judgement.
The amounts that will go to these banks include accumulated interest for over nine years.
MUSCAT: Ali Redha Group has said that the recent enforcement of a court ruling directing BankDhofar to pay RO26.1 million is a culmination of six years of proceedings at various levels in the Omani courts.
The case is linked to a long pending dispute between Oman International Bank (OIB) and Ali Redha Group, who alleged to have been possessing 1.925 million shares of BankDhofar, which were pledged to OIB.
This was disputed by BankDhofar. Ali Redha Darwish commended the Omani judicial system, which ordered BankDhofar to pay the funds. "The Supreme Court judgment, originally issued in 2006, had not been enforced due to procedural objections from BankDhofar in 2009," Ali Redha Group said in a statement.
However, after six years of litigation and procedural measures, the Appellate Court ordered commencement of enforcement proceedings and this order has recently been upheld by the Supreme Court.
BankDhofar has, therefore, exhausted all legal avenues available to it for preventing enforcement although it is still contesting procedures. In light of the review by the judiciary, and the rejection of their procedural objections, the bank was ordered to pay the amount of RO26.1 million, which was calculated by court appointed experts and duly executed earlier last week.
It should be noted that about RO9 million of the enforced amount will go back to BankDhofar against their previous exposure to the Ali Redha Group, with most of the balance being paid to other banks after settling Oman International Bank's judgement.
The amounts that will go to these banks include accumulated interest for over nine years.
© Times of Oman 2011
