ENFORCEMENT OF UK JUDGMENTS IN THE UAE

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

The Treaty between the UAE and the British isles on Judicial Assistance in Civil and Commercial Issues does not especially refer to the mechanism for enforcement procedures. As these kinds of, in the absence of an ideal treaty or memorandum of understanding in between the UAE and the United kingdom on the enforcement treatments, the provisions of Federal Legislation No. 11 of 1992 on the Civil Techniques Legislation and Cupboard Choice No. 57 of 2018 as amended, implement.

Article 85 of Cabinet Conclusion No. 57 of 2018 as amended, gives for the basic principle of reciprocity below which:

“Judgments and orders delivered by a overseas country may possibly be requested to be executed in the Condition underneath the similar circumstances as approved in the regulation of that nation for the execution of judgments and orders issued in the Point out.”

This new progress follows the conclusion sent in Lenkor Power Buying and selling DMCC v Puri [2020] EWHC 75 (QB) and the subsequent charm which reiterated the higher standard essential to be fulfilled in purchase for a British isles court docket to oppose the enforcement of a overseas judgment.

The proceedings adopted a tripartite settlement which was subsequently demonstrated to have ruled a transaction tainted by illegality. Nonetheless, in this tripartite agreement, the defendant issued two cheques on behalf of the partaking corporation which were being 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 Posting 599(2) of Federal Law No. (18) of 1993 about the Commercial Transaction Law. In the United kingdom proceedings which adopted, the court confirmed prima facie that a ultimate judgment issued by a courtroom of capable foreign jurisdiction may be enforced in the Uk, other than in scenarios where by these enforcement would be contrary to community plan. The British isles court docket also further more clarified the scope of the community coverage defence on which a United kingdom courtroom might impeach a overseas judgment by reiterating that the overseas judgment getting enforced would alone need to offend English community coverage, and not the underlying transaction on the basis of which the judgment was issued.

In the absence of a binding treaty concerning the UAE and United kingdom, the modern announcement by the Ministry of Justice is not binding on the UAE courts but marks an essential advancement for the enforcement of British isles judgments in the UAE though furnishing some ease and comfort to lenders trying to get to implement a Uk judgment from a debtor in the UAE.

For further more data in relation to the enforcement of international judgments in the UAE make sure you speak to rpereira@davidsoncolaw.com. Please also get hold of us on +97143438897 exactly where our staff will be delighted to guide you.