Q: We have an LLC company in Dubai for the last 12 years. We have bank liabilities with one of the UAE banks for which our sponsor has given a personal guarantee. To remove his personal guarantee he has agreed to make a partial settlement of the loan but needs confirmation from the company that when we win one of the arbitration cases and money which we get in Dubai court, he should have first right over that receivables from Court. The receivable amount will be more than what he will pay to banks. 1) Can we create such an agreement and will Dubai court accept this? 2) What is the procedure we can do and give him the confidence to pay money to the bank?

Q: Hello Sir, I have a company and have outstanding loans worth AED 1.9 Million. We have been paying regularly for over 2 years now, but I have not been able to pay my last EMI. The next one is due soon but I don't have the provision to pay as the business is very dull. What are the consequences if I cannot pay?

Q: We have been working for a Dubai based company since 2007. Over the years we have sent many invoices and the company has paid the invoices, a lot of times too late but paid. We kept on doing services for this company since we had a good private relationship. The debts kept building up and are today 1.5 million USD. The company signed an "Acknowledgement of Debt Agreement" and accepted that they owe us the money. The company's CPA sent us several Balance Confirmation letters and asked us to confirm the debts. We signed and returned. They have not paid anything since 2015. We do have some signed invoices, signed order of confirmations in regards to the service we supplied and many emails that confirm that we discussed the debts. We think we have a strong case but we consider to sell the claim. Is it legal to trade claims in the UAE? How do you see our case?

س: السلام عليكم، أعمل في العلاقات العامة في شركة لأكثر من 15 عامًا. في نفس الوقت أعمل لشركة أخرى بموجب وكالة قانونية لنفس المالك. الشركة التي حصلت على تصريح العمل منها أعلنت الإفلاس. هل أستطيع الحصول على رواتبي المتأخرة (8 أشهر) ومكافأة نهاية الخدمة من الشركة الأخرى؟ علمًا بأنها شركة ذات مسؤولية محدودة.

بتاريخ 24/10/2023، صدر قرار الهيئة العامة لمحكمة تمييز دبي في الطعن 4 لسنة 2023 مرسياً مبدأً جديداً مفاده أن الأصل في الناس هو الإعسار وأن اليسار عارض، وأنه يتعين -تبعاً لذلك- على طالب التنفيذ أن يثبت يسار خصمه المنفذ ضده أو تهريبه لأمواله كي يستصدر أمراً بضبطه وإحضاره ثم حبسه لإكراهه بدنياً على السداد. وكما هو متوقع، أحدث هذا القرار ردود فعل كثيرة ومتنوعة، سيما وأنه قرار نوعي يقلب كثيراً من الأوضاع المعتادة رأساً على عقب ويغير من الحالة الاجتماعية السائدة الشيء الكثير.

The law promulgates UAE Civil Procedures Code (Civil Procedure Law) which governs civil procedures in the United Arab Emirates, including the prosecution before the courts, litigation and execution.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.