AD streamlines payments in commercial dispute cases

Eudore R. Chand

ABU DHABI 13 October 2020: H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and President of the Abu Dhabi Judicial Department (ADJD), has issued a decision approving the guidelines for payment orders in Commercial Matters.

It is believed it includes property and rental payment awards by courts.

These guidelines aim to strengthen the business environment in the Emirate of Abu Dhabi and enhance the Emirate’s position as an attractive destination for foreign investments and capital, through the activation of accomplished, fair and simplified litigation systems and the provision of fast and effective mechanisms for dispute resolution, said official news agency Wam.

The guidelines address all questions and inquiries so that court officers and litigants can familiarise themselves with these provisions in a way that guarantees the issuance of the payment order and the access by interested parties to their rights without delay.

The implementation of this facilitated mechanism for claiming established rights depends on the creditor first completing a necessary procedure before proceeding with the order for payment. This procedure is the assignment of the debtor to comply with his obligations (formal notice).

As per the law, the issuance of a payment order requires that the debt is proved in writing, whether under an electronic or documentary format and is immediately due for payment and if the only thing the creditor is claiming is a money debt of specified amount or a moveable object of specified type or amount.

The guide also lists the commercial deeds and contracts that may be subject to payment orders and provides some examples of these. Where the conditions for obtaining an order for payment are fulfilled, the creditor may assert his right within three days from the filing of the application. The order is issued in the absence of the opponent, does not require the presence of the parties and does not require the holding of hearings or pleadings. Expedited enforcement is also accepted.

On the occasion, Youssef Saeed Al Abri, Under-Secretary of the ADJD, explained that the objective of the guide is to improve the enforcement power of commercial contracts and strengthen governance, transparency and quality of judicial proceedings in the Commercial Court, by simplifying procedures for litigants and court officers.

This is likely to enhance the competitive position of the emirate by building confidence in the judicial system and attracting foreign investments, Al Abri added.

CLICK FOR NEWS ABOUT CORONAVIRUS

ALSO READ:

UAE tops Mena on Covid Economic Recovery Index

1,096 new covid cases, 1,311 recoveries, 2 deaths

Dubai Economy fines 6 businesses and warns one more

Air Arabia Abu Dhabi launches new flights to Nepal

Dubai Gazette