Enforcement of a judgment should be the crown jewel of every successful claim.
However, the picture is not always as rosy. Sometimes the successful litigant is faced with the realisation that the judgment debtor has no substantial assets for the enforcement and recovery of the awarded sums. What is left is an ‘empty’ judgment.
This article will attempt to discuss the situation of empty judgments, what brings them about, ways to prevent them, as well as some practical recommendation and suggestions from our practice and experience.
UAE Law No. 18 of 1993 ‘Concerning Commercial Transactions’ (the “Commercial Transactions Law”) provides a framework for the bankruptcy of persons engaged in trade.
Part Five of the Commercial Transactions Law sets out provisions dealing with the bankruptcy procedure for traders who cease to pay their debts. This article will take a look at the bankruptcy provisions of the Commercial Transactions Law.
Definition of Bankruptcy
Section 1 of Article 645 of the Commercial Transactions Law provides:
The duties and obligations of directors in the United Arab Emirates (UAE) are drawn from various legislative sources; there is no consolidated legislative framework dealing with the duties and obligations of directors under UAE Law. Squire Patton Boggs’ Dubai office have published a summary of the principal duties and liabilities of a director in the UAE, both generally and in the event of insolvency.
On 29 March 2016, Abdul Aziz Al Ghurair, Chairman of the UAE Banks Federation (UBF), announced a new “rescue initiative” in relation to SME debt in the United Arab Emirates, under which UBF member banks might impose a 90-day “standstill” on use of judicial means to enforce the payment of SME debts.
In a recent landmark judgment dated 21 February 2016 the Dubai Court of First Instance decided in favour of a foreign shareholder, against a local Emirati, in a winding up petition. This is contrary to the long established protectionist trend employed by Courts in the United Arab Emirates. What is even more surprising is that the Court, in reaching its decision, has adopted a purposive approach, rather than simply applying the black letter of the law, as has traditionally been the case.
Case Details
Who to pay when the bunker supplier becomes insolvent
1. Introduction
Кто должен платить, когда поставщик топлива становится неплатежеспособным.
1. Введение
بإشهار افلاس شخص ما أو شركة ، وما هي الفائدة التي تعود على الدائنين ، وهنا سنبين أهم الىثار التي تترتب على على الحكم بإشهار الإفلاس وهي عدة آثار بالنسبة للمدين وبالنسبة للدائنين وبالنسبة للتفليسة نبينها فيما يلي :-
ويمكن حصر الاثار المتعلقة بشخص المدين في أربعة آثار رئيسية :
1- تقييد حرية المفلس : لا يجوز للمفلس ان يتغيب عن محل اقامته دون ان يخطر امين التفليسة كتابة بمحل وجوده، ولا يجوز له ان يغيره او يغادر الدولة الا بإذن من قاضي التفليسة.
This article is a case study on how the UAE, a country with two cities which are significant international financial and business centres (namely Dubai and Abu Dhabi), functions without effective insolvency laws; and why this state of affairs is likely to continue for some time.
Whilst it is not strictly true that the UAE has no insolvency laws at all, it is fair to say that no one (debtors or creditors) makes use of the existing laws. A new UAE insolvency law has been drafted, but in the writer’s view it will be years before it sees the light.
OW Bunker, one of the world’s major bunker suppliers and traders, and one of the largest companies in Denmark in terms of revenue, has filed for in-court restructuring for major parts of its business.
The subsidiaries involved face insolvency following the uncovering a $125m fraud in Singapore and a $150m risk management loss.