TMC says no commercial court jurisdiction in SABIC dispute

Logo of Twareat Medical Care Co. (TMC)

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

In a Tadawul filing, the company claimed that the notice, dated Nov. 26, stated that the competent panel decided that commercial courts lack subject-matter jurisdiction to hear the case following closing arguments and deliberations.

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.

TMC noted that the case relates to an agreement to operate eight medical clinics within SABIC facilities and subsidiaries. Under the agreement, the company 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.