What You Need to Know About Civil Asset Recovery in the UAE

1. What You Need to Know About Civil Asset Recovery in the UAE? Author: Dr. Hassan Elhais Introduction The civil procedure in the UAE is governed by the Federal Law No 11 of 1992 (Civil Procedure Code) as amended, along with the Cabinet Decisions (including Cabinet Decisions 57 of 2018 and 33 of 2020), and resolutions, etc. issued from time to time. The Civil Procedure Code regulates the procedure for litigation in civil, commercial, administrative, labour and personal status matters. It also governs the procedure of appeals and execution of judgments. The court system in UAE is hierarchal and operates both at the federal level and a local level. Sharjah, Ajman, Fujairah and Umm Al Quwain are part of the federal judicial system whereas Abu Dhabi, Dubai and Ras Al-Khaimah have their own local judicial systems. At both federal and local level, the judicial system is divided into the courts of first instance and the court of appeal. At the local level, the court of appeal is followed by the court of cassation which is the highest court in the relevant Emirate. At the federal level, the appeals court is followed by the Federal Supreme Court, which is the highest court in the federal judiciary system. Court Proceedings Once court proceedings are initiated by filing a statement of claim (along with the relevant details such as names and addresses of the parties and details of the claim), a hearing date is pronounced with the defendant required to submit a memorandum of defense. Once the proceedings have been completed, the judge will pronounce its judgement setting out the reasons for its judgement. Enforcement of the Judgement Upon the final judgement being pronounced, execution proceedings are required to be initiated by the judgement creditor. According to Article 97 of the Cabinet Decision 57 of 2018, execution is preceded by service of writ of execution. A notice to pay the debt will be issued to the debtor, who will have 15 days from the date of the notification to make payments. If the execution is based upon evacuation of a property or by delivery of a movable or real estate, these funds shall be specified with the notice. Any date set for evacuation or delivery will also need to be mentioned in

2. the notice issued to the debtor. Provisional Seizure & Other Actions If the judgment creditor believes, based on serious evidence, that the debtor will flee or smuggle or conceal his funds, leading to loss of creditor’s guarantee of right to receive funds, the creditor may request the court to provisionally seize property and assets of the debtor under Article 111 of the Cabinet Decision 57 of 2018. The court may conduct necessary investigations, request statements, evidence and affidavits before accepting the application for seizure. In addition to provisionally seizing the assets of the debtors, the creditor may, in accordance with the Cabinet Decision 57 of 2018, as part of the enforcement proceedings, request the court to impose: (a) attachment/seizure of movables or debts of debtor in hands of a third party; (b) attachment of stocks, bonds, revenue and shares; (c) attachment and sale of real estate; and (d) bankruptcy proceedings. The judge also has the right to order the imprisonment of the debtor under Article 183 of the Cabinet Decision. The debtor may also be placed under a travel ban under Article 188 of the Cabinet Decision. Conclusion The execution proceedings are a key step in concluding the lawsuit filed in the courts in the UAE. It is crucial to ensure that any judgment received by a person is executed in accordance with the rules and regulations and within the time frame as well. Related Links Points to remember when enforcing foreign judgement UAE Law: Choice of governing law and jurisdiction Learn the outcome of first ever judgment concerning Covid-19 in UAE now! Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided. Contact Us The H Hotel Office Tower, 29th Floor, Office 2904, Sheikh Zayed Road, PO Box 40073, Dubai, United Arab Emirates Tel: +971 4 355 8000 | Fax: +971 4 358 9494 Office No. 804, 8th Floor, Tamouh Tower Marina Square, Al Reem Island, PO Box 129980, Abu Dhabi Tel: +971 2 650 1211 | Fax: +971 4 358 9494

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