MAURITIUS Law and Practice Contributed by: Roobesh Ramanjooloo, Pritesh Ramsaha and Ingrid Lecordier-Marie Joseph, Juristconsult Chambers
Attachment A judgment may be enforced by attaching funds or assets belonging to the judgment debtor that are held by a third party (the garnishee). The process is initiated before the Judge in Cham - bers by way of a praecipe and affidavit. A provisional attachment order is first issued and served on the judgment debtor and the garnishee, following which an application to validate the attachment must be filed within eight days. The garnishee is required to file an affidavit stating whether it is indebted to the judgment debtor. Where the garnishee confirms the debt (affirmative declara - tion), the attachment may be validated. Where it dis - putes the debt or asserts that a lesser sum is due, the Judge in Chambers will determine the issue and decide whether to validate the attachment. Insolvency Proceedings Statutory demand Where the debt exceeds MUR250,000 (approximately USD5,300) and is owed by a company, the creditor may serve a statutory demand on the debtor. The stat - utory demand, issued in the prescribed form, affords the debtor – within one month of service, or such long - er period as the court may order – the opportunity to pay the debt, to enter into a compromise or otherwise co-operate with the creditor, or to provide security for the debt by granting a charge over its property. A statutory demand may only be issued in respect of a debt that is certain, liquidated and due. Although it is an out-of-court procedure, the debtor may apply to the court to have the demand set aside. Strict time limits apply, and a failure to observe them may bar the debtor from challenging the demand, although the debtor may seek an extension of time from the court. Winding-up proceedings Where a company fails to comply with a statutory demand or a judgment requiring payment, the credi - tor may petition for its winding-up. Before the peti - tion is presented, security for costs in the sum of MUR25,000 (approximately USD530) must be depos - ited. Once the petition is filed, the court orders that notice of it be published in two widely circulated daily newspapers and served on the respondent, so that
the debtor and any interested creditors may file their respective positions. The debtor retains the right to
oppose the petition. Bankruptcy notice
Where an individual fails to satisfy a judgment debt exceeding MUR100,000, the creditor may serve a bankruptcy notice requiring payment within 14 days. If the debtor does not comply, a bankruptcy petition may be lodged within 42 days of service of the notice. The petition is filed before the Bankruptcy Division of the Supreme Court and must be supported by an affidavit. 2.3 Costs and Time Taken to Enforce Domestic Judgments Time Where enforcement is sought through the seizure and sale of movable property, the period between the application to the court and the eventual sale is typi - cally around one year. The seizure and sale of immov - able property will likewise generally take approximate - ly one year, provided the application is not contested. Insolvency and attachment proceedings generally take between six months and one year to complete. Cost Court and associated costs are usually minimal and would not exceed USD750. The bulk of costs borne by parties would be made up of counsel and attor - ney fees. Fees can range between USD2,000 and USD6,000 for claims up to MUR2.5 million (approxi - mately USD53,000), but should be expected to be much higher for higher value claims (estimates of between 10% and 20% of the value of the claim). Efficiency of Available Enforcement Methods Insolvency proceedings are generally the most effec - tive means of pressing a debtor to satisfy a judgment debt, since they may culminate in the winding-up of a company or the bankruptcy of an individual. Attachment proceedings are particularly useful where there is a risk that assets may be disposed of before the debt is recovered. A provisional attachment order is usually granted shortly after the application is made and prevents the garnishee from dealing with the
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