Oct 30, 2023
Arresting debtors in execution cases has been restricted
On 24 October 2023, The Dubai Cassation Court ruled decision no.4 of the General Authority of Cassation decisions. Arresting debtors in execution cases has been restricted by the new guidelines. The ruled decision has been issued based on the given opinion of the General Authority of Cassation for free consultation CALL US NOW
The legal ground for arresting or imprisonment debtors
The new decision required conditions that should be met to issue an arrest or imprisonment decision. Statement of inability to pay their debts is one of the common reasons for any execution case, But it leads to the crucial question; who has the responsibility to prove this inability?
The issued decision has been derived from the principle of (solvency & insolvency of the debtors).
Islamic law is one of the main resources of the law in UAE which assumes that the debtors are insolvent by default. Thus, it’s presumed that they can’t pay their debts unless proven otherwise.
Proving solvency is a requirement to arrest debtors in execution cases
Accordingly, proving the solvency of the debtors who cannot pay their debts falls on the execution applicant. The newly applied guidelines assigned the creditors showing evidence that their debtors truly could pay in order to make such decisions. Thus You can’t just imprison them or seize their freedom without providing proof.
The Court’s Brief Investigation Before issuing an arresting debtor Decision
the execution court shall take a brief investigation as a fact-checking process. During this investigation, the claimant should prove their allegations of the debtor’s solvency. Also, they could prove if there are illegal transactions of hiding debtor’s properties or other intended
behaviours behind their financial struggles.
Finally, it is a valuable legal development in the UAE legal system. that arresting debtors in execution cases has been restricted to a fair limit. the decision delivered a higher level of justice and reasonability of the end results. Arresting or imprisonment of debtors in execution cases will require significant preparation in the legal procedures from litigators. Thus we strategically, advise applying the new legal application proactively against those who might prepared their claims in bad faith.
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