Contractor pursuing $62.6m of Nakheel claims
TAGC also wants to stop payback of sum from earlier dispute
A contractor is pursuing claims against Nakheel relating to two construction projects which came to a premature end as a result of Nakheel's financial difficulties following the financial crisis.
The claims, worth $62.6m (AED: 230m), have been brought by Technical Architects General Contracting Company (TAGC), a contractor with operations in Dubai and Abu Dhabi.
The law firm representing TAGC said that the claims are not related to a 2011 judgement secured against the contractor worth over $20m (AED: 73.7m) arising from the cancellation of a contract to at Nakheel's Mogul 3 project. The firm also won costs of more than $170,000 (AED: 629,836).
Instead, Hadef & Partners said the claims were being brought as a result of the stoppage of two other construction contracts.
The Dubai World Tribunal awarded the $20m sum related to the Mogul 3 contract in June 2011 and dismissed an appeal by Nakheel to overturn the decision in February. However, it did allow Nakheel to recover $3.2m (AED: 11.6m) of the original claim.
The head of Hadef & Partners' Engineering & Construction Practice in Dubai, Anthony Edwards, said: “In ongoing Dubai Court proceedings TAGCC is continuing its efforts to object to having to repay the amount of the AED 11.6m which has, in any event, been reduced by DWT due to adjustments for interest allowed to TAGCC on its judgment amount.”
He added: “In addition to currently taking those legal steps to recover its claimed amounts on those two other projects, TAGCC is also asking the Dubai Courts to allow it to distrain on Nakheel’s assets to recover an amount of almost AED 505,000, ($137,490) plus interest, arising from Nakheel’s failure to pay TAGCC its liability for TAGCC’s outstanding legal costs in the Mogul 3 proceedings.”
The case will be heard by the Dubai World Tribunal - a specialist body set up in 2009 to administer disputes against Dubai World and its subsidiaries (including Nakheel). It is overseen by the courts which rule on matters at the Dubai International Financial Centre (DIFC).