December 2, 2022

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In an effort to reinforce judicial continuity, on 13 September 2022, the United Arab Emirates (“UAE”) Ministry of Justice issued a letter to the Director General of the Dubai courts confirming the enforcement of judgments issued in the courts of the United Kingdom (“UK”) via the principle of reciprocity.

The Treaty amongst the UAE and the Uk on Judicial Assistance in Civil and Commercial Matters does not exclusively refer to the mechanism for enforcement procedures. As these, in the absence of an appropriate treaty or memorandum of understanding in between the UAE and the British isles on the enforcement methods, the provisions of Federal Legislation No. 11 of 1992 on the Civil Methods Legislation and Cupboard Selection No. 57 of 2018 as amended, apply.

Post 85 of Cabinet Choice No. 57 of 2018 as amended, provides for the basic principle of reciprocity under which:

“Judgments and orders shipped by a international country may possibly be requested to be executed in the State beneath the exact disorders as recommended in the regulation of that place for the execution of judgments and orders issued in the State.”

This latest progress follows the selection delivered in Lenkor Electrical power Buying and selling DMCC v Puri [2020] EWHC 75 (QB) and the subsequent charm which reiterated the significant common expected to be achieved in purchase for a British isles court to oppose the enforcement of a foreign judgment.

The proceedings followed a tripartite arrangement which was subsequently revealed to have ruled a transaction tainted by illegality. However, inside this tripartite agreement, the defendant issued two cheques on behalf of the participating company which had been dishonoured when presented for payment. In an application to the Dubai courts, the claimant was awarded a favourable judgment against the defendant who was held personally liable for the dishonoured cheques as for every Article 599(2) of Federal Legislation No. (18) of 1993 concerning the Business Transaction Legislation. In the British isles proceedings which followed, the court verified prima facie that a ultimate judgment issued by a court of qualified foreign jurisdiction might be enforced in the United kingdom, other than in cases wherever this sort of enforcement would be opposite to general public plan. The Uk court docket also additional clarified the scope of the community coverage defence on which a British isles court may possibly impeach a international judgment by reiterating that the foreign judgment staying enforced would by itself require to offend English community policy, and not the fundamental transaction on the basis of which the judgment was issued.

In the absence of a binding treaty amongst the UAE and United kingdom, the latest announcement by the Ministry of Justice is not binding upon the UAE courts but marks an essential advancement for the enforcement of British isles judgments in the UAE when furnishing some comfort to collectors trying to find to implement a United kingdom judgment from a debtor in the UAE.

For further information in relation to the enforcement of foreign judgments in the UAE be sure to make contact with [email protected] Remember to also call us on +97143438897 in which our group will be delighted to support you.