Deyaar Development, listed on the Dubai Financial Market (DFM), announced that the Court of Appeal has issued a judgment in favour of the company regarding its cases with Limitless.
The Court of Appeal has affirmed the judgment of Dubai Court of First Instance to cancel all sale and purchase agreements of the land plots in dispute, according to a bourse filing on Monday.
Deyaar has paid a total amount of AED 411.966 million, representing 50% of the total purchase price of the land plots.
Moreover, Limitless has to pay the legal interest at a rate of 9% per annum of the aforementioned amount as of the date of the claim on 4 August 2015 until full payment and all the amounts paid by Deyaar against the price of the lands shall be returned.
Under the judgment, Limitless is obliged to pay a compensation of AED 61.107 million to Deyaar for breaching obligations.
“The impact of the judgment on the financial position of the company and the timing for such impact to reflect in the financial statements depends on the collection of the awarded amounts and the rejection of any appeal against the judgment by Cassation Court in case that the Judgement was challenged by Limitless,” Deyaar highlighted.
Deyaar has not raised any amounts yet as the judgment is currently being executed, the company noted