RENDERED UNDER THE AUSPICES OF
'The Cairo Regional Centre For International Commercial Arbitration'
Upon construction, taxation and social insurance
Complied and commented by Dr. Mohie - Eldin Ismail Alam-Eldin
Legal Adviser in Crcica
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Case No.1
Case no.310/2002 Ad Hoc
Final award dated 8.8.20051
Arbitrators: British Chairman with two Egyptian members
Parties: Claimant: and counter-defendant: European construction company.
Respondent and counter-Claimant: Afro-Asian tourism company.
Issues raised: extension of time and damages for losses of both parties.
Place or arbitration: CRCICA
Procedural law: UNCITRAL Arbitration Rules
Substantive law: Egyptian civil law
Language: English
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Interest
lnterest is the profit which can be made from the use of money, and consequently it is the further sum of money recoverable when a payment of 94 money has been delayed or unjustifiably withheld. The Arbitral Tnbunal finds that the Claimants are entitled to payment of interest. Pursuant to Article 226 of the Egyptian Civil code the applicable rate of interest for debts on coonmercial matters is 5% per annum. The Respondents, have claimed "loss of earnings" on all the sums awarded to the Respondents in this Arbitration until the date of actual payment. On the basis of its finding that the delay to practical completion of the Works was not attributable to the Claimants, and its analysis of Counterclaims 1 to 6, the Aribtral Tribunal finds that the Respondents' countercaim for interest is rejected and dismissed in its entirety.
The Claimants claimed interest at 7% on the following sums:
(vii)
late payment of monthly payment certificates July 1997 to November 2001;
(viii)
non-payment of monthly payment certificate nos. 49 to 53 (July 2001 to November 2001. respectively);
(ix)
late refund of custom duties;
(x)
late refund of sales tax and non-reimbursement of additional sales tax;
(xi)
delayed release of retention monies; and
(xii)
withholding liquidated damages.
On all the sums awarded to the Claimants in this Arbitration from the date of the award until the date of actual payment. Except for the Claimants' claims in respect of monthly payment certificate Nos. 49 to 53 (for which the Arbitral Tribunal has no jurisdiction in this Arbitration, seee paragraph 24.29.5 above). each of the above claims will be analysed by the Arbitral Tribunal below, in the order set out above.
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1This case has been subject to two final awards: in case no.310/2002 the Arbitral Tribunal settled some specific demands of the Parties; and some days after this award the case no. 449/2005 was filed for the final account of the whole aspects of dispute. The two awards are the longest in all awards of Crcica. The formation of the Tribunals was different.