أسئلة وأجوبة
Company assets blocked and a travel ban imposed. What’s the next step to recover my dues?
Dear Lawyers,
My case is in the execution court. I have taken multiple measures, including blocking the company’s traffic file, bank accounts, and trade license, but the company has neither paid the dues nor responded.
Finally, I requested the court to impose a travel ban on the company’s manager, which the court approved. However, the defendant has repeatedly requested the court to lift the travel ban, arguing that he is a local national and the case is against the company (an LLC), not him personally.
So far, the court has rejected his requests.
Could you please advise on further actions I can take to recover the funds?
Can I request an arrest order? If yes, on what grounds?
Also, is there any possibility that the court might lift the travel ban without the payment being made?
Dear Questioner,
As the court has already approved the travel ban on the company’s manager, this means that the court recognizes the severity of the case and the risk of the manager fleeing the country.
If the court has rejected the manager's requests to lift the travel ban, this suggests that the judge has deemed the ban justified due to non-payment of dues.
You can request an arrest order for the company's manager, but this is typically considered a last resort.
You must demonstrate to the court that the manager’s actions are directly responsible for the non-payment of the debt and that there is a serious risk of fleeing or hindering enforcement of the court’s judgment.
If the manager is deliberately avoiding payment or obstructing the enforcement of the judgment (i.e., blocking assets, refusing to respond to court orders), this can be grounds for an arrest.
Ensure that you have fully explored the option of seizing the company’s assets, including properties, vehicles, or bank accounts.
If the company’s bank accounts are frozen but they still refuse to pay, try to determine if there are hidden or additional assets that have not been disclosed.
For further assistance, kindly share your WhatsApp number.
Yes, if a consulting report is submitted, stating that the company is in debt and has outstanding financial obligations.
Greetings,
The whole matter is up to the court’s discretion in the matter of lifting the travel ban on the person against whom the execution is being carried out.
As for submitting a request to arrest and bring him in, you must, when submitting it, prove to the court that the company has funds and that the manager himself is the reason for the failure to implement it.
Otherwise, the court cannot issue an order to arrest and bring him in. You must continue the procedures until you force the company and its manager to pay your dues.
Thank you for reaching out regarding your ongoing execution case!
I understand the challenges you're facing in enforcing the judgment against the LLC and its manager. Let's address your concerns:
1. Requesting an Arrest Order:
In the UAE, if a debtor fails to comply with a court judgment, the creditor can seek an arrest order against the debtor.
This measure is typically considered when there's a risk of the debtor absconding or dissipating assets to evade payment. Given that the court has already imposed a travel ban on the company's manager, you may petition for an arrest order by demonstrating:
- The manager's continued non-compliance with the court's judgment.
- Evidence suggesting potential asset concealment or transfer.
- A substantial risk of the manager attempting to leave the country despite the travel ban.
It's essential to provide compelling evidence to support such a request, as courts exercise caution before issuing arrest orders in civil matters.
2. Possibility of Lifting the Travel Ban:
While the court has thus far denied the manager's requests to lift the travel ban, it's important to note that travel bans can be reconsidered under certain circumstances. The court may lift the travel ban if:
- The debtor provides adequate security or a bank guarantee covering the debt amount.
- The debtor demonstrates a genuine need to travel, such as for medical treatment, and offers assurances of returning.
- The creditor consents to lifting the ban.
However, without settlement of the debt or provision of sufficient security, it's less likely that the court will lift the travel ban.
3. Additional Measures:
Beyond the travel ban and potential arrest order, consider the following actions:
- Asset Investigation: Conduct a thorough investigation to identify any undisclosed assets owned by the company or its manager. This can include real estate, vehicles, or other valuable property that may be subject to attachment.
- Third-Party Claims: If the company has receivables from third parties, you can request the court to redirect these payments to satisfy the judgment.
- Public Auction: Seek the court's permission to auction attached assets to recover the owed amount.
Given the complexities involved, it's advisable to consult with a legal professional experienced in UAE execution proceedings to strategize effectively.
If you need further assistance or wish to discuss your case in detail, please feel free to contact me via WhatsApp or phone at [---------].
Best regards,
Suhail Rana
Dear questioner,
In such matters, the chances of imposing an arrest warrant are low. However, the imposition and approval of the travel ban against the manager is a positive step.
It will compel him to release funds through the company, as he may face many issues in conducting day-to-day business and legal activities due to the travel ban.
If you need further assistance with your matter, kindly share your WhatsApp number.
Requesting an arrest order is feasible under specific circumstances related to personal liability and non-compliance.
Lifting a travel ban typically requires substantial justification from the defendant’s side. Your focus should remain on leveraging existing court orders while exploring all potential avenues for asset recovery.
