- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 04:26 05:44 12:20 15:47 18:50 20:08
Movable assets can be seized provisionally if debtor has no stable residency, is likely to flee the country or security deposit is under threat. (EB FILE)
The Dubai Court of Cassation has issued a legal guideline governing the provisional seizure of a debtor's moveable assets.
The new ruling sets three conditions under which the provisional seizure of moveable assets and real estate / property for fear of loss of the debtor's guarantee is allowed.
Under the first condition, if the debtor has no stable residency, moveable assets can be seized. Second is if the creditor fears the debtor will flee or conceal his funds. Lastly, if the debtor's security deposits are under threat due to losses suffered.
The court issued the new ruling against the backdrop of a case dealing with a disputed plot of land. The land was allegedly split into different plots by defendants in the case to obtain two bank loans of Dh75 million and Dh27m.
The plaintiffs complained about this to the Land Department, but their complaint was rejected.
The plaintiffs then filed a suit in the Dubai Civil Court, demanding provisional seizure of the land.
The Court of First Instance rejected the seizure request, after which the plaintiffs took the case to the Court of Appeal, which moved the case to the Court of First Instance, which, in turn, handed the case to the Court of Cassation. The court ruled that the Land Department shall impose provisional seizure of the land in the interest of the court, pending the settlement of the dispute. The court based its verdict on Article 252 of the Civil Procedures Law.
Follow Emirates 24|7 on Google News.