civil law

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March 04, 2019

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UAE Legislators issued amendments to the Cabinet Decision Number 57 of 2018 On the Regulation of Federal Law Number 11 of 1992 on the Civil Procedure (the Civil Law). These amendments were introduced in the form of Cabinet Decision No. 22 of 2020 as well as Cabinet Decision No. 75 of 2021.

These decisions issued by the Cabinet are major regarding the advertising and notification procedures. The present article by Legal Consultants of Dubai shed light on the notification procedures in payment order/execution cases. Following are the notable amendments made under the Cabinet Decisions regarding execution orders:

Article 62 (Amended by Cabinet Decision No. 33 of 2020 and further amended by Cabinet Decision No. 75 of 2021)

1. With the exception of the general rules of filing the lawsuit before the courts of the first instance, the provisions stipulated in the following articles shall be applied if the creditor's right is confirmed - electronically or in writing - and the whole claim is a debt of a specified amount or a movable asset of a specified type and amount.

2. The provisions of the previous paragraph shall be followed if the holder of the right is a creditor with a commercial paper or if the subject matter of the financial claim is the enforcement of a commercial contract.

3. Claiming the interests or taking any provisional measure shall not hinder any precautionary measure.

Article 63 (Amended by Cabinet Decision No. 33 of 2020)

1. The creditor shall serve upon the debtor a notice to pay the amount due within a time limit of five days at least, then he shall obtain a payment order from the judge of the Court in whose jurisdiction the debtor's domicile is located, the Court where the agreement was made or implemented in whole or in part, or the Court where the agreement shall be implemented.

The amount of the right stated in the notice may not be less than that stated in the petition filed for the issuance of the payment order. The notice to pay shall be served by any means of the notification specified in this Regulation.

2. The payment order shall be issued based on a petition, either electronically or in writing, as the case may be, to be filed by the creditor. The debt instrument and evidence of notice to pay shall be attached to the petition. The petition shall be kept at the case management office until the time limit prescribed for appeal expires.

3. The petition shall contain the information to be included in the statement of claim provided for in Article (16) of the regulations.

4. The order shall be issued within three days at most from the submission of the petition, indicating the amount or the movable ordered to be paid, as the case may be, and whether it was issued in a commercial matter.

5. The petition referred to in this article shall be deemed as having the same effects of filing the case as of the date of its submission, even if the Court is not competent.

Article 64 (Amended by Cabinet Decision No. 33 of 2020 and further amended by Cabinet Decision No. 75 of 2021)

The judge shall decide to accept or reject the petition in whole or in part. In case of acceptance or rejection, then such a decision shall have grounds, and in case the decision is related to the execution of a commercial contract then it shall be reasoned in all cases.

Article 65  (Amended by Cabinet Decision No. 33 of 2020)

1. The debtor shall be notified of the order issued against him in accordance with the provisions and methods outlined in the regulations.

2. The payment order issued against the debtor shall be considered void ab initio if it has not been notified to the debtor within three months from the date of issuing the order.

Article 66 (Amended by Cabinet Decision No. 33 of 2020 and further amended by Cabinet Decision No. 75 of 2021)

1. The litigants may file a grievance against the payment order if its value is within the limits of the final quorum of the Court of First Instance within (15) fifteen days from the date of the debtor’s notification of the order and the date of issuance of the decision for the creditor.

The grievance shall be settled before the competent performance order judge under the usual procedures for filing the lawsuit. Upon observation of the grievance, the rules and procedures followed before the Court shall be taken into consideration. The judge shall decide on the grievance by issuing a final judgement on the litigation and such judgment may not be subject to appeal, and the grounds shall be deposited in the same session.

2. Taking into consideration Clause (1) of this Article, the payment orders whose value exceeds the final quorum of the Court of First Instance may be appealed, according to the procedures prescribed for the appeal of judgments. The grounds of such appeal shall be presented upon its registration, otherwise, it shall be rejected.

3. Taking into consideration Article (17) Clauses (8) and (68) bis, the Court shall decide on the appeal in the Council Chamber without preparation by the case management within one week from the date of announcement of the statement of appeal. It may set a hearing to study the matter if necessary and it shall not return the claim to the Court of First Instance.

4. Notwithstanding the provisions of the previous Paragraph, in case the claim was submitted to the Court of First Instance in the usual manner for filing lawsuits, and in case the supervising judge issues a writ of execution in this regard, and the appeal court finds that the conditions of the issuance of the performance order are not met, then it shall return it to the court of the first instance according to the due process adopted for the consideration of the lawsuit.

5. The rules and procedures related to a grievance against the performance order or the appeal thereof shall apply to the precautionary measures issued with said order.

Article 67

The rules of provisional enforceability shall apply to the payment order in accordance with the provisions of the Law or the regulations.

Article 68

If the creditor, pursuant to the provision of Article (62) of the regulations, wishes to file an attachment on the assets the debtor has in the hands of third parties, the usual seizure procedures shall be applied.

Article 68 bis (Added by virtue of Cabinet Decision No. 75/2021)

Notwithstanding the provisions of this Chapter, in case the lawsuit presented to the court meets the conditions deemed necessary for the issuance of the performance order, then this shall be done as per the rules and procedures prescribed for the decision on the lawsuits.


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Comments

Dear Sir, Thank you for the details given regarding the Writ of Performance. I have a question. Is there a way to stop the creditor in advance from obtaining the writ of performance? If so, what is the procedure?
Mathew Varghese
2020-02-10
In furtherance to your inquiry, please note that you cannot refrain the creditor from obtaining the writ of performance, unless the matter is resolved outside the court.

Should you have any questions, please do not hesitate to contact us.   Dr. Hassan Elhais

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