Answer: Yes, it is.
According to Article 137(1) of Federal Decree-Law No. 42 of 2022 on Civil Procedure, if the Supreme Court annuls a judgment and remands the case for reconsideration, the court of appeal is bound by the legal position set out in the Supreme Court’s ruling. This means that, upon reconsideration, the court may not disregard the conclusions of cassation and must limit its examination to the issues that the Supreme Court left open for review.
In Commercial Appeals Nos. 117 and 122 of 2025, the following occurred:
- The Supreme Court had previously annulled the judgment in part concerning the correction of a material error, stating that such correction must be signed by the presiding judge of the panel and must specify precisely the corrections made.
- However, upon reconsideration, the appellate court ignored the cassation’s instructions, merely stating “correct the material error,” without specifying which corrections were made, and without addressing the parties’ arguments on how this correction affected their legal positi...