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Court awards KD11.6mn to Agility in ‘PAI’ dispute

publish time

27/04/2026

publish time

27/04/2026

KUWAIT CITY, April 27: On April 23, the Court of Cassation ruled o.n Appeals Nos. 13, 187, and 374/2022 Commercial/4 in the dispute between the Public Authority for Industry (PAI) and Agility Public Warehousing Company concerning the contractual relationship for Phase Five in South Amghara, reports Al-Seyassah daily.

The judgment granted Agility the right to recover approximately KD 11.6 million from PAI. PAI had filed Case No. 3538/2020 before the Commercial Civil Court, seeking confirmation of the termination of its contractual relationship with Agility, the eviction of the company from the disputed site measuring 427,164 square meters, and compensation for the period following the contract’s expiry. In response, Agility filed Case No. 4542/2020 before the Commercial Civil Court with counterclaims.

The Court of First Instance had ruled that the contractual relationship between PAI and Agility had ended as of April 8, 2020, regarding Phase Five of the South Amghara project, and ordered the company to vacate the site and hand it over to PAI. It also ordered Agility to pay PAI KD 44,237.806 for the period from April 8, 2020, until the date of the judgment, in addition to court costs and KD 10 in legal fees. The court dismissed Agility’s counterclaim and ordered the company to bear its own court costs and pay KD 10 in legal fees

Appeals
Dissatisfied with this ruling, both parties filed appeals in Appeals Nos. 1910 and 1920/2021 (Commercial). The Court of Appeals upheld the judgment in full, while addressing the issue of rent valuation. The case was then further appealed before the Court of Cassation under Appeals Nos. 13, 187, and 374/2022 Commercial/ 4. The Court of Cassation first accepted all three appeals. On the merits of Appeal No. 374/2022, it partially overturned the appealed judgment regarding the assessment of rent and ordered the first respondent to pay the costs, along with KD 20 in attorney’s fees.

The court dismissed Appeals Nos. 13 and 187/2022 and ordered each appellant to pay the costs of the appeal, in addition to KD 20 in attorney’s fees. The court amended the appealed judgment regarding the benefit payment, ordering Agility to pay PAI KD 80 for each day of delay from the contract’s expiry date of April 8, 2020, until full delivery. The Court of Cassation upheld the appealed judgment, ordering the company to pay the costs and KD 20 in attorney’s fees. According to the published data, the financial outcome of the ruling is that Agility is entitled to recover KD 11,659,198.416. It is worth noting that the disputed site, located in South Amghara, was officially handed over in November 2024, following the termination of the contractual relationship between the two parties and the completion of all related legal procedures.