Tihama: Appeal Court upholds ruling obligating it to pay SR11.8 mln for Riyadh Municipality

26 Oct 2021

Riyadh-Maaal

اقرأ المزيد

Tihama Advertising, Public Relations and Marketing Company announced on Tuesday the issuance of the Court verdict by the Administrative Court of Appeal in Riyadh on 24/10/2021, rejecting the appeal submitted by the company and confirming the judgment issued from the Administrative Court in Riyadh in favor of Riyadh Municipality.

The value of the judgment issued in favor of the Riyadh Municipality is an amount of SR11,769,914.

“There will be no impact on the income statement, as the company has previously recorded a provision against for the full value of the claim.” the company said.

The Riyadh Municipality has filed a lawsuit before the Administrative Court in Riyadh to demand Tihama Advertising, Public Relations and Marketing Company to pay an amount of (11,769,914) Saudi riyals in favor of the Riyadh Municipality for a claim related to the dues for renting and exploiting advertising sites in Riyadh.

Tihama Advertising said in a statement on Tuesday that ” There are no Substantial Legal, Regulatory, or Operational Risks as a direct effect that may Result from the Lawsuit except the of cash flow as a result of its obligation to lawsuits amount.”

The Company, based on documents available with it, has obtained legal advice and has authorized a lawyer to appeal to the preliminary judgment that has been issued against the company and the liability that the company handled as a result of the lawsuit and rejecting the appeal and to obligating the company to pay the lawsuit amount

“The Company would like to draw the attention that it has filed a lawsuit against Riyadh Municipality in the Administrative court to claim compensation for the damage caused to the advertising billboards owned by it and which were removed by the defendant in a way that led to the damage to it as announced on 1-09-2021 in Tadawul.” it concluded.