ST, Doha
Answer: According to Article 803 of the civil laws, in fire insurance the insurer shall be responsible for all damages arising from the fire or from the start of a fire that can become a complete fire or for a fire risk that can materialise. Its liability shall not be limited to the damages arising directly from the fire but also covers the damages that arise as an inevitable result thereof, particularly the damages caused to insured property by reason of using methods of rescue or of prevention of the extension of fire. It shall also be liable for loss or disappearance of insured items during the fire unless it proves that this has taken place as a result of a theft even if there is an agreement to the contrary.
Firm with 100% foreign ownership
Q: We understand that a new foreign investment law is in discussion. However, it is noticed that a few companies own 100% ownership currently. Can a construction company be established with 100% total foreign ownership without including a Qatari national as partner for a project currently? We are a foreign company mainly into scaffolding business and we have been awarded a tender in Qatar. For the execution of project, is it possible to establish our company with the same shareholders as in our main company? Please advise.
GS, Doha
A: Under Article 3 of the Foreign Investment Law – Law No.13 of 2000, a foreign company can open a temporary branch office in Qatar if the company is awarded a specific contract involving a project that contributes to public service or interest. In this situation, the Minister of Economy and Commerce can license the foreign company to conduct business in Qatar for the specific purpose of completing the contract. The licence to operate the temporary branch office will expire once the contract is completed. A foreign company can open a representative office by filing an application at the Ministry of Economy and Commerce.
An offence under the penal law
Q: I had some issues with my colleague in relation to execution of certain things. We had strong arguments on that issue and he has insulted me in front of others in the office. One top of that he had also damaged some of my personal property. If I approach the police, what will be the action initiated against him for such acts? Please advise.
SH, Doha
A: The offender shall be punished according to Article 389 of the penal law. As per the provisions of penal law, any person, who intentionally destroys, damages or spoils, another person’s movable or immovable properties, or makes them unusable, invaluable, useless or invalid, shall be punished with imprisonment for a term not exceeding three years and/or a fine not exceeding QR10,000. Punishment shall be imprisonment for a term not exceeding five years if the offence is committed by a minimum of three people.
Stipulation of two-year ban
Q: As per the new law on immigration, there is no two-year ban limiting a person from obtaining the work visa. But in my new employment contract, there is a restriction clause which does not allow to take up a job with any competitor. While the two-year ban has been removed from the law, is it legal to restrain an employee with such clauses in contract? What is the legality and which law empowers the clause? Please advise.
SL, Doha
A: Though Law No. 21 of 2015 has abolished two-year ban on employees to obtain work visa, the restrictive covenant preventing the employee from working with competitor still exists. According to Article 43 of the Labour Law – No. 14 of 2004, if the nature of the work allows the employee to become acquainted with the clients of the employer or the secrets of the business of the establishment, the employer may stipulate that the employee shall not compete with him or participate in any undertaking competing with him after expiry of the contract. The period of such undertaking shall not exceed two years. Such stipulation shall be valid only if it is restricted as to place and to type of the work to the extent necessary to safeguard the employer’s lawful interests.
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LEGAL SYSTEM IN QATAR
Article 374 of Civil and Commercial Procedure Law, all judgments and orders shall be self-executing and enforceable immediately without bail on all petitions, unless the judgment or order provides for a payment of bail.
An objection may be filed with the Court of Appeal pertaining to the immediate self-executing order through the normal procedures followed for filing a lawsuit. Parties shall be summoned to appear before the court within three days. The objection may be brought before the hearing specified for appeal against the issued judgment. A ruling on such objection shall be made independently from the subject matter under examination.
As per Article 376, in cases, where it is not permitted to execute the judgment or the order except with bail, the party which is obligated to pay the bail shall have the option to either bring in a capable bailer or deposit in the treasury of the court sufficient cash or negotiable instruments or accept a deposit of proceeds of execution in the court treasury or hand over the debt that is ordered to be surrendered in the judgment or order to a capable receiver.
The bailer shall be notified of the options either through an independent notice or within the deed of execution or through a payment order. The choice should, in all cases, include the determination of an elected domicile for the execution applicant to which the papers related to the litigations in the bail.
According to Article 378, the concerned party may, within three days from the notification, contest the ability of the bailer or receiver or the sufficiency of the deposited money, provided that the disputed claim shall be summoned during the date specified to the litigant to appear before the judge of execution, and the judgment in this dispute shall be final. If the disputed matter is not submitted at the specified time or if it is submitted and then rejected, the receiver in the Registry of the court shall undertake to accept the receivership or the bailer shall undertake to accept the bail. The minutes that recorded the undertaking by the bailer shall be deemed as a deed of execution acceptable to effect obligations on the basis of his undertaking.
The execution of the judgments and orders delivered in a foreign country may be mandated in the state of the Qatar under the same conditions decided in the law of that country for executing the judgments and the orders delivered. A request of the execution of order shall be made by summoning the litigant to appear before the judge of execution of the Higher Civil Court in compliance with the normal procedures of filing a lawsuit.
As per Article 380, execution may not be ordered before the verification of the following: (a) Courts of the State of Qatar have no sole jurisdiction to rule over the dispute on which the judgment or order was issued and the foreign courts which issued them have such jurisdiction to examine such a dispute in accordance with the International Judicial Jurisdiction Rules as stipulated in its applicable law; (b) The litigant parties, in the action in which the foreign decision has been delivered, have been summoned and have been properly represented; (c) The judgment or order had obtained the effect of res judicata in accordance with the law of the issuing court. The judgment or order is not inconsistent with the judgment or order that was issued before by a court in Qatar and shall not include anything that contravenes the public order and conduct in the State.
