Questions & Answers
Counterclaim against two companies owned by the same owner
I write to you from the UK.
There are two corporate companies owned by the same owner and operating in the same territory; one of them is a property company, the second is a financial services company.
The first one has defaulted on a transaction with me for £700,000. This amount has remained outstanding for the last 10 years and is a proven debt.
The second company is making a claim against me for £53,000 and starts bankruptcy action against me.
Does Sharia / Dubai law permit me to make a counterclaim against the second company because of the outstanding debt (£700,000) that the first one owes me?
The transactions between both were separate transactions. Does Sharia Law permit a “set-off"?
In law, set-off is a legal technique applied between persons with mutual rights and liabilities. It permits the rights to be used to discharge the liabilities where cross-claims exist between two parties.
Hi M.,
I think we have already discussed this case.
Please feel free to phone or email me for any clarifications required.
Thanks!
Dear Questioner,
Regarding your inquiry, you cannot make a counter case against the first company, because - as you mentioned - it is a separate transaction.
So, according to Article No. 99 of the Civil Procedure Code, you don’t have the right to make counterclaim (the reason of the original case does not match the reason of the counter case).
You should file a separate case against the first company.
Note: If you file a counter case, the court will charge you 6% and you may lose.
But if you file a separate case, you will pay the same, but you will win if you have enough proof.
Thanks and best regards,
Dear Mr M.,
First of all, you need to tell us the legal entity of each company.
As in LLC companies, each company has separate financial liability. In addition, applying a set-off shall be applied if the debt is of the same type.
