(1) Lajvati (2) Laghuvi v (1) Lankesh (2) Larraj [2021] DIFC SCT 186 (05 October 2021)

(1) Lajvati (2) Laghuvi v (1) Lankesh (2) Larraj [2021] DIFC SCT 186 (05 October 2021)

The defendants had no knowledge of the AED 150,000 loan by the CFO, and the loan was made after the completion date as defined in the agreement. Therefore, no breach of warranty occurred, and the claim for interest and court fees fails. The defendants' counterclaim for legal costs and stress/trauma is unsupported by evidence and dismissed.

Citation
[2021] DIFC SCT 186
Parties
Claimant: Lajvati; Claimant: Laghuvi; Defendant: Lankesh; Defendant: Larraj
Jurisdiction
United Arab Emirates
Judgment Date
05 October 2021
Procedural Posture
Small Claims Tribunal / Final Judgment
Outcome
both claim and counterclaim dismissed
Legal Topics
Share Purchase Agreement, Warranties, Leakage, Debt, Counterclaim, Damages
Contract Law Commercial Law Share Purchase Agreement Warranties Leakage Debt Counterclaim Damages

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Parties

Lajvati

Claimant

Laghuvi

Claimant

Lankesh

Defendant

Larraj

Defendant

Procedural Posture

Small Claims Tribunal / Final Judgment

Legal Issues

  1. 1 whether the defendants breached warranties under the share purchase agreement
  2. 2 whether the loan of AED 150,000 constituted leakage or debt under the agreement
  3. 3 whether the defendants are liable for interest and court fees

Ratio Decidendi

The defendants had no knowledge of the AED 150,000 loan by the CFO, and the loan was made after the completion date as defined in the agreement. Therefore, no breach of warranty occurred, and the claim for interest and court fees fails. The defendants' counterclaim for legal costs and stress/trauma is unsupported by evidence and dismissed.

Court Disposition

both claim and counterclaim dismissed

Orders

  • Claimants’ claim dismissed.
  • Defendants’ counterclaim dismissed.