Answered by Dr. Hassan Elhais In Dubai civil cases, if someone proves they cannot pay what the court ordered, they will normally avoid facing an arrest warrant, the emirate's highest judicial body has said.
Creditors need to demonstrate that the person who owes the money has sufficient funds to pay the debt before the court can issue an arrest warrant for unpaid dues.
The Dubai Court of Cassation made the announcement on October 24 in an attempt to clarify the clauses of article 319 of the federal civil procedure law and avoid creditors making unnecessary claims.
The court said insolvency should be presumed unless proved otherwise and that creditors must provide evidence.
Dr Hassan Elhais, a legal consultant at Awatif Mohammad Shoqi Advocates and Legal Consultants in Dubai, said the law allows for the imprisonment of debtors who fail to comply with court-ordered payments, unless they can prove their insolvency.
"However, it's crucial to note that the article also outlines specific conditions under which claims of insolvency may not be accepted, potentially leaving debtors vulnerable to imprisonment," he told The National.
"These include if the debtor has smuggled or concealed their assets with the intent of harming the creditor.
"These actions make it impossible for the creditor to access these assets for repayment."
He said this includes cases where the debt contains one or more instalments that the debtor has failed to pay, or when the debtor has provided guarantees for another person's debt before the court or an execution judge.
The only exception is if the debtor can demonstrate new circumstances that have significantly affected their financial circumstances, making it impossible to meet their repayment obligations.
"But we have to be clear that this is related to cases involving real estate, commercial, family and labour disputes, and not criminal offences," Dr Elhais added.
The court said enforcement judges must conduct a brief investigation with the debtor before considering imprisonment, with a focus on proving solvency or uncovering asset concealment.
"This landmark resolution aims to provide a fairer and more balanced approach to debt-related matters in Dubai, ensuring that individuals facing financial challenges are not unduly penalised," Dr Elais said.
"It underscores the importance of proving a debtor's solvency before resorting to imprisonment, ensuring a more equitable legal process."
Your email address will not be published. Required fields are marked *
I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.
Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.
Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.
He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.
I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.
Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.
Contact Me
