Equipment House says preliminary ruling in NUPCO case in favor of subsidiary

Logo of Scientific & Medical Equipment House Co. (Equipment House)

Scientific & Medical Equipment House Co. (Equipment House) announced that a preliminary ruling was issued, on Aug. 13, by Riyadh’s Commercial Court, 13th Circuit, in favor of the company’s wholly owned subsidiary, Protecta Visions Co., in the lawsuit filed against National Unified Procurement Co. (NUPCO).

In a statement to Tadwul, Equipment House pointed out that the ruling obliged the defendant to pay an amount of SAR 60.57 million in favor of Protecta Visions.

Moreover, the defendant has to make a payment of SAR 500,000 for litigation and attorney fees, as per the preliminary ruling.

In April 2021, Protecta Visions filed a lawsuit before Riyadh’s Commercial Court against NUPCO after the latter canceled an award authorization issued to Protecta Visions, which had brought the entire quantity of contracted devices.

The ruling is preliminary, subject to appeal by both parties within a period of 30 days as the date of the ruling receipt in writing, within 10 days from the date of ruling issuance, the statement noted.

The devices’ revenues would be recognized after supplying them to NUPCO upon the ruling implementation. This will have a positive impact on the company’s income statement, in addition to the award authorization’s profit margin, if the ruling becomes final.

Any material developments in this matter will be disclosed in due course, the statement concluded.