The state body is obliged to pay off the debt and forfeit penalty in the amount of more than 1.3 billion tenge.
On November 16, the Astana International Financial Centre’s court of first instance ruled in favor of the complainant, the Turkish company Cengiz Insaat Sanayi ve Ticaret A.S. This was the third and last stage of the legal actions against the Roads Committee of the Ministry of Industry and Infrastructural Development of the Republic of Kazakhstan.
The subject of the dispute was the unfulfilled obligations of the Roads Committee to finance the reconstruction of the Aktobe-Martuk highway carried out back in 2010.
Initially, the case was considered at the AIFC International Arbitration Centre. Then, by the decision of the arbitrator Ilya Rachkov, the requirements of Cengiz Insaat Sanayi ve Ticaret A.S. were satisfied.
To secure the arbitral award in court, the plaintiff appealed to the AIFC Court of First Instance. British judge Sir Jack Beatson also upheld the applicant’s claims and established that payments should be made no later than 18:00 Nur-Sultan time on Monday 18 October. The Committee for Roads was ordered to pay the main debt under the contract in the amount of 281.3 million tenge, financial costs in the amount of 171 million tenge, the costs of arbitration in the amount of 20 thousand US dollars.
However, representatives of the Roads Committee decided not to stop there and appealed the decision. While the arbitration and the court of first instance the case was considered remotely, this time they had to defend their position in the courtroom. The open hearing was chaired by Justice Sir Rupert Jackson. However, the state body lost this stage as well. The Committee for Roads was ordered to pay the main debt under the contract in the amount of 794.8 million tenge and financial costs, including the costs of arbitration, 540.3 million tenge.
The AIFC Court has a special mechanism that ensures the effective execution of decisions, the statistics of which are impressive – at the moment, all judicial and arbitral decisions are 100% executed. This means that the state body will have to fulfill its obligations after all.
Follow the link to get acquainted with the decision of the AIFC Court.
