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AJIAL NATIONAL EDUCATION COMPANY K.S.C.C v THE SECURITIES HOUSE COMPANY [2024] DIFC CFI 105 — Consent Order Resolves Costs Dispute (15 October 2024)

Parties settle costs and discontinue litigation in education sector dispute.

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What was the dispute between Ajial National Education Company K.S.C.C and The Securities House Company in CFI 105/2021?

The core of the dispute in CFI 105/2021 involved claims brought by Ajial National Education Company K.S.C.C and Talal Khalifa Talal Al Jeri (the Claimants) against The Securities House Company, Stellar Educational Service Co. /razan Hamad Alhamad & Partners, and First Kuwaiti For Education Holding Company W.L.L (the Defendants). While the specific underlying causes of action are not detailed in this consent order, the proceedings encompassed an application by the Claimants concerning the Defendants' liability for the Claimants' costs. This application, dated 13 May 2024, sought an order for the Defendants to pay the Claimants' costs on a standard basis and a payment on account. The matter ultimately concluded not on the merits of the original claims, but through a settlement agreement that addressed the issue of costs.

All Parties have reached an amicable settlement of all of the Claimants’ costs of these
proceedings, including the costs of the Claimants’ Application.

The resolution focused on the financial aspects of the litigation, specifically the costs incurred by the Claimants, rather than a judicial determination of the substantive claims. The parties' agreement to settle these costs led to the discontinuation of the proceedings.

The consent order in case number CFI 105/2021 was issued by Assistant Registrar Delvin Sumo. The order was formally issued on 15 October 2024, at 3 pm, following the parties' agreement to its terms.

What were the specific arguments made by the Claimants regarding costs in CFI 105/2021?

The Claimants, Ajial National Education Company K.S.C.C and Talal Khalifa Talal Al Jeri, formally applied to the Court of First Instance seeking an order for the Defendants to bear their costs. Their application, designated as CFI-105-2021/4 and dated 13 May 2024, specifically requested that the Defendants pay the Claimants' costs of the proceedings on a standard basis. Furthermore, the Claimants sought an interim payment on account of these costs. This application formed the basis for the subsequent settlement discussions concerning the financial implications of the litigation.

The central legal question addressed by the court in the consent order for CFI 105/2021 was not about the merits of the underlying dispute, but rather the agreed resolution of the Claimants' costs. Specifically, the court was asked to formalise the parties' agreement on the quantum and payment of the Claimants' costs, including those related to a specific application made by the Claimants. The court's role was to ensure that the parties' settlement regarding costs was properly recorded and that the proceedings could be formally discontinued based on this agreement.

How did the court formalise the parties' agreement on costs and discontinuance in CFI 105/2021?

The court formalised the parties' agreement through a Consent Order, issued by Assistant Registrar Delvin Sumo. This order was predicated on the parties having reached a mutual understanding regarding the Claimants' costs. The order explicitly stated that all parties had settled all of the Claimants' costs, including those associated with a specific application.

The costs of these proceedings, including the costs of the Claimants’ Application are as
per the agreed terms of the Settlement Agreement.

This agreement was documented in a separate, confidential Settlement Agreement. Based on this cost settlement, the court then ordered the formal withdrawal and discontinuance of the proceedings against all Defendants.

What specific rules and agreements governed the resolution of costs in CFI 105/2021?

The resolution of costs in CFI 105/2021 was primarily governed by a confidential Settlement Agreement reached between the parties. This agreement stipulated the terms under which the Claimants' costs, including those related to their application, would be settled. The court's Consent Order, issued on 15 October 2024, referenced this Settlement Agreement as the basis for the cost disposition.

The proceedings (including the Claimants’ Application) under the above referenced case
number CFI-105-2021 are withdrawn and/or are discontinued against the Defendants.

While the specific rules of the DIFC Courts, such as the Rules of the DIFC Courts (RDC), would have governed the procedural aspects of the cost application and the consent order itself, the substantive terms of the cost settlement were dictated by the private agreement between the parties.

What was the ultimate disposition of the proceedings in CFI 105/2021?

The ultimate disposition of the proceedings in CFI 105/2021 was a discontinuance against all Defendants. This outcome was a direct result of the parties reaching an amicable settlement concerning the Claimants' costs. The court's Consent Order formally recorded this settlement and ordered the withdrawal and discontinuance of the case.

The consent order in CFI 105/2021 signifies the conclusion of the litigation through a negotiated settlement, particularly concerning costs. For practitioners, it underscores the utility of the DIFC Courts in facilitating amicable resolutions, even in cases where substantive claims may have been complex. The order highlights that parties can agree to resolve cost disputes separately from the merits of their underlying claims, leading to a streamlined discontinuance of proceedings. This approach can save parties further time and expense associated with protracted cost litigation.

Where can I read the full judgment in Ajial National Education Company K.S.C.C v The Securities House Company [2024] DIFC CFI 105?

https://www.difccourts.ae/rules-decisions/judgments-orders/court-first-instance/cfi-1052021-1-ajial-national-education-company-kscc-2-talal-khalifa-talal-al-jeri-v-1-securities-house-company-2-stellar-educati-7
https://littdb.sfo2.cdn.digitaloceanspaces.com/litt/AE/DIFC/judgments/court-first-instance/DIFC_CFI-105-2021_20241015.txt

Cases referred to in this judgment:

Case Citation How used
(No cases cited in the provided text for this specific order)

Legislation referenced:

  • Rules of the DIFC Courts (RDC) (implied by the nature of the court order and application)
Written by Sushant Shukla
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