Twareat: Appeal court rescinds preliminary ruling in SABIC case, orders retrial

Twareat Medical Care Co. announced that the Court of Appeal ruled today, Dec. 30, to overturn the preliminary circuit’s ruling in the case filed against Saudi Basic Industries Corp. (SABIC), which had previously cited a lack of subject-matter jurisdiction by commercial courts to hear the lawsuit.

 

Instead, the Court of Appeal ordered the case to be remanded to the preliminary circuit to be heard on its merits, the Nomu-listed company said in a Tadawul filing.

 

Twareat said it will announce any other material developments in due course.

 

According to data available with Argaam, Twareat recently received a notice from its external legal counsel regarding the Dec. 9 filing of an appeal with the Riyadh Commercial Court, contesting the initial ruling of non-jurisdiction.

 

The lawsuit, originally filed in November against SABIC, seeks financial differences totaling SAR 34.51 million (including VAT) for the period from Dec. 1, 2019, to Nov. 30, 2024.

 

The dispute stems from an agreement to operate eight medical clinics within SABIC facilities and its subsidiaries. The contract stipulated that Twareat would perform a specific number of medical examinations for employees annually, with a provision for SABIC to compensate Twareat for financial shortfalls if the number of examinations fell below the agreed-upon minimum.

 

The company stated that it received on Nov. 26 official notice from the external lawyer appointed to the case, confirming the court judgment that the commercial courts lacked subject-matter jurisdiction to hear the case.