TMC says no commercial court jurisdiction in SABIC dispute

Logo of Twareat Medical Care Co. (TMC)

Twareat Medical Care Co. (TMC) said it received a formal notice from its external counsel in the case filed against Saudi Basic Industries Corp. (SABIC) over claims related to unpaid financial differentials arising from SABIC’s failure to meet the contractually agreed minimum volume of medical tests.

The company stated in a Tadawul filing that the notice, dated Nov. 26, indicated that after closing arguments and deliberations, the competent panel ruled that commercial courts lack subject-matter jurisdiction to hear the case.

TMC added that it will disclose the full reasoning once it receives the written judgment, along with any other material developments.

The Nomu-listed firm had recently announced that it filed a lawsuit against SABIC before the Riyadh Commercial Court – Fourth Circuit, seeking SAR 34.51 million, inclusive of VAT, covering the period from Dec. 1, 2019, to Nov. 30, 2024, according to data compiled by Argaam.

The company noted that the case relates to an agreement to operate eight medical clinics within SABIC facilities and subsidiaries. Under the agreement, TMC was required to carry out a specified minimum number of annual medical tests for SABIC employees, with SABIC obligated to compensate the company for any shortfall in the number of tests performed versus the contractual minimum.