National Bank of Umm al-Qaiwain (NBQ) has won an appeal in a Dubai court in a US$250m legal battle Global Investment House (Global) relating to the Kuwaiti firm’s failed attempt to buy a stake in the UAE lender.
Global Investment House (Global) announced that the Court of Cassation of Dubai on its hearing held today, in relation to the Dubai Court of Appeal ruling on May 21, 2012 in Global’s favour to recover the company’s United States Dollar Two Hundred and Fifty million deposit, decided to revert the case back to Dubai Court of Appeal,” Global said in a filing to the Dubai bourse, dated September 18.
The ruling refers to Kuwait-based Global’s attempt to backtrack on a deal buy a US$642.5m stake in the UAE bank after default it on payments.
Global had looked to buy a 20 percent stake and had paid NBQ US$249.9m but defaulted on the remainder.
"GIH filed a lawsuit in this regard and the Court of First Instance rejected on July 21, 2009 the GIH lawsuit due to the existence of an arbitration clause in the two firms' memorandum of understanding,'' NBQ said in 2009.
A Global spokesman said in 2009 the investment bank has decided to scrap the deal because it was not viable amid the global financial crisis, adding that it had only signed a non-binding memorandum of understanding with NBQ.
"We never gave them a firm offer and we never signed a subscription agreement," a Global spokesperson told Reuters, adding that the $249.9 million paid by Global to NBQ was a fixed deposit not related to the deal, which the latter has refused to return.
While Global appealed the 2009 decision and won a favourable result, the legal battle continues in the Court of Appeal.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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