March 23, 2023

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ENFORCEMENT OF UK JUDGMENTS IN THE UAE

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In an effort to strengthen judicial continuity, on 13 September 2022, the United Arab Emirates (“UAE”) Ministry of Justice issued a letter to the Director Common of the Dubai courts confirming the enforcement of judgments issued within the courts of the UK (“UK”) by the precept of reciprocity.

The Treaty between the UAE and the UK on Judicial Help in Civil and Business Issues doesn’t particularly discuss with the mechanism for enforcement procedures. As such, within the absence of an applicable treaty or memorandum of understanding between the UAE and the UK on the enforcement procedures, the provisions of Federal Regulation No. 11 of 1992 on the Civil Procedures Regulation and Cupboard Resolution No. 57 of 2018 as amended, apply.

Article 85 of Cupboard Resolution No. 57 of 2018 as amended, gives for the precept of reciprocity below which:

“Judgments and orders delivered by a overseas nation could also be ordered to be executed within the State below the identical circumstances as prescribed within the regulation of that nation for the execution of judgments and orders issued within the State.”

This current improvement follows the choice delivered in Lenkor Vitality Buying and selling DMCC v Puri [2020] EWHC 75 (QB) and the next enchantment which reiterated the excessive commonplace required to be met to ensure that a UK courtroom to oppose the enforcement of a overseas judgment.

The proceedings adopted a tripartite settlement which was subsequently proven to have ruled a transaction tainted by illegality. Nonetheless, inside this tripartite settlement, the defendant issued two cheques on behalf of the participating firm which have been dishonoured when offered for cost. In an utility to the Dubai courts, the claimant was awarded a beneficial judgment in opposition to the defendant who was held personally chargeable for the dishonoured cheques as per Article 599(2) of Federal Regulation No. (18) of 1993 in regards to the Business Transaction Regulation. Within the UK proceedings which adopted, the courtroom confirmed prima facie {that a} closing judgment issued by a courtroom of competent overseas jurisdiction could also be enforced within the UK, besides in cases the place such enforcement could be opposite to public coverage. The UK courtroom additionally additional clarified the scope of the general public coverage defence on which a UK courtroom might impeach a overseas judgment by reiterating that the overseas judgment being enforced would itself must offend English public coverage, and never the underlying transaction on the idea of which the judgment was issued.

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Within the absence of a binding treaty between the UAE and UK, the current announcement by the Ministry of Justice isn’t binding upon the UAE courts however marks an vital improvement for the enforcement of UK judgments within the UAE whereas offering some consolation to collectors looking for to implement a UK judgment in opposition to a debtor within the UAE.

For additional info in relation to the enforcement of overseas judgments within the UAE please contact [email protected] Please additionally contact us on +97143438897 the place our group will likely be delighted to help you.

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