15th of April, 2014
Egypt Restricts Annulment Actions Against Government-Investor Contracts
Keywords: Infrastructure & Projects, Commercial
Egypt Restricts Annulment Actions Against Government-Investor Contracts
Interim President Adly Mansour approved a law on Tuesday 22 April restricting the right to bring annulment actions against contracts concluded with the government, according to daily newspaper Al Shorouk.
What are the restrictions?
The new law prevents filing of annulment actions against a contract concluded with the government, or against any procedures or decrees leading up to concluding such contract, by any parties except:
a) One of the parties to the contract, or
b) Third parties who have rights over the assets or funds that are the subject of the contract.
The law makes an exception in cases where the contract was concluded based on a crime of bribery or embezzlement, and a conclusive criminal verdict was issued in that regard. In this case, any third party may bring an annulment action against such contract.
The law covers all contracts concluded with the government or any of its entities including government owned companies.
What happens to pending court cases?
According to the law, any pending annulment actions filed in contravention of the above restrictions (i.e. by any party other than as explained above), even those filed before passing this law, shall be automatically dismissed by the court as long as a final, unappealable verdict has not yet been issued in such actions.
Why was this law issued?
The law comes as a response to several actions brought against government contracts in the past years by unrelated third parties to cancel such contracts. Such actions resulted in annulling a number of contracts including privatization contracts.
What are the restrictions?
The new law prevents filing of annulment actions against a contract concluded with the government, or against any procedures or decrees leading up to concluding such contract, by any parties except:
a) One of the parties to the contract, or
b) Third parties who have rights over the assets or funds that are the subject of the contract.
The law makes an exception in cases where the contract was concluded based on a crime of bribery or embezzlement, and a conclusive criminal verdict was issued in that regard. In this case, any third party may bring an annulment action against such contract.
The law covers all contracts concluded with the government or any of its entities including government owned companies.
What happens to pending court cases?
According to the law, any pending annulment actions filed in contravention of the above restrictions (i.e. by any party other than as explained above), even those filed before passing this law, shall be automatically dismissed by the court as long as a final, unappealable verdict has not yet been issued in such actions.
Why was this law issued?
The law comes as a response to several actions brought against government contracts in the past years by unrelated third parties to cancel such contracts. Such actions resulted in annulling a number of contracts including privatization contracts.
Egypt Restricts Annulment Actions Against Government-Investor Contracts
15 April, 2014
Keywords: Infrastructure & Projects, Commercial
Egypt Restricts Annulment Actions Against Government-Investor Contracts
Interim President Adly Mansour approved a law on Tuesday 22 April restricting the right to bring annulment actions against contracts concluded with the government, according to daily newspaper Al Shorouk.
What are the restrictions?
The new law prevents filing of annulment actions against a contract concluded with the government, or against any procedures or decrees leading up to concluding such contract, by any parties except:
a) One of the parties to the contract, or
b) Third parties who have rights over the assets or funds that are the subject of the contract.
The law makes an exception in cases where the contract was concluded based on a crime of bribery or embezzlement, and a conclusive criminal verdict was issued in that regard. In this case, any third party may bring an annulment action against such contract.
The law covers all contracts concluded with the government or any of its entities including government owned companies.
What happens to pending court cases?
According to the law, any pending annulment actions filed in contravention of the above restrictions (i.e. by any party other than as explained above), even those filed before passing this law, shall be automatically dismissed by the court as long as a final, unappealable verdict has not yet been issued in such actions.
Why was this law issued?
The law comes as a response to several actions brought against government contracts in the past years by unrelated third parties to cancel such contracts. Such actions resulted in annulling a number of contracts including privatization contracts.
What are the restrictions?
The new law prevents filing of annulment actions against a contract concluded with the government, or against any procedures or decrees leading up to concluding such contract, by any parties except:
a) One of the parties to the contract, or
b) Third parties who have rights over the assets or funds that are the subject of the contract.
The law makes an exception in cases where the contract was concluded based on a crime of bribery or embezzlement, and a conclusive criminal verdict was issued in that regard. In this case, any third party may bring an annulment action against such contract.
The law covers all contracts concluded with the government or any of its entities including government owned companies.
What happens to pending court cases?
According to the law, any pending annulment actions filed in contravention of the above restrictions (i.e. by any party other than as explained above), even those filed before passing this law, shall be automatically dismissed by the court as long as a final, unappealable verdict has not yet been issued in such actions.
Why was this law issued?
The law comes as a response to several actions brought against government contracts in the past years by unrelated third parties to cancel such contracts. Such actions resulted in annulling a number of contracts including privatization contracts.
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