UAE Law and Practice Contributed by: Mohammed Alsuwaidi, Ali Alraeesi, Rajiv Suri and Merline Dsouza, Alsuwaidi & Company
3.3 Categories of Foreign Judgments Not Enforced Onshore Courts A foreign judgment or order may not be enforced by UAE courts if the relevant court does not have the jurisdiction to do so. The condition of jurisdiction can be fulfilled as follows: • the jurisdiction should be given to the authorised Court of First Instance in the location where the debtor has its address or residence; or • the jurisdiction should be given to the authorised Court of First Instance in the location of movable or immovable assets that are owned by the debtor or in the possession of a third party. Any foreign judgment or order that does not satisfy the conditions set out in 3.1 Legal Issues Concerning Enforcement of Foreign Judgments cannot be rec - ognised and therefore cannot be enforced in the UAE. Offshore Courts DIFC The DIFC Courts will look to ensure that the issuing court had the jurisdiction to render the judgment, and may refuse enforcement when they find otherwise. ADGM The registration of the judgment will be set aside if the ADGM Court of First Instance is convinced that the issuing court has no jurisdiction in the circumstances of the case. In doing so, the Court will go through the criteria set out in Article 175 (2) of the ADGM Court Regulations for an issuing court to assume jurisdic - tion. 3.4 Process of Enforcing Foreign Judgments If a creditor chooses to pursue enforcement through the onshore courts, the UAE Federal system – fol - lowing the civil law approach – requires reciprocity. Foreign judgments are enforced in accordance with the principles set out in Article 222 of the CPL gov - erning the enforceability of foreign court judgments. Under the DIFC Court system, enforcement of foreign judgments is governed by Article 22 of DIFC Law No 10 of 2004 and Article 7 of Dubai Law No 12 of 2004, applying common law principles without requiring rec - iprocity. In contrast, the ADGM Court system, under
court; or (d) agreed to submit to the jurisdiction of the for - eign court before commencement in respect of the subject matter of the proceedings. If the foreign judgment complies with these require - ments (even where there is no treaty), the grounds to challenge recognition and enforcement will be limited to the judgment having been obtained by fraud or being contrary to public policy, or where the proceed - ings were conducted in a manner that the DIFC Courts consider to be contrary to natural justice. Whilst the RDC do not specify a limitation period for the recognition and enforcement of foreign judgments, orders or awards under the laws of England and Wales (which can be applied in the DIFC Courts where no specific DIFC law applies), the limitation period is con - Whilst similar to the DIFC Courts’ procedure for the enforcement of foreign judgments, orders and awards, the ADGM Courts are more restrictive in that they require reciprocity to be established. In the ADGM Court system, a foreign judgment may be registered if it is final and conclusive, and satisfies specific con - ditions, such as not being under appeal or procured by fraud (Article 172 of the ADGM Regulations). How - ever, judgments concerning taxes, fines or penalties are excluded from enforcement. 3.2 Variations in Approach to Enforcement of Foreign Judgments Onshore Courts After satisfying the requirements of the Tier 1 proce - dure outlined in 3.4 Process of Enforcing Foreign Judgments , the provisions of the CPL do not dif - ferentiate between the enforcement of domestic and foreign judgments, notwithstanding the country of issuance of said foreign judgment. Offshore Courts The DIFC and ADGM Courts do not differentiate between the enforcement of domestic and foreign judgments, notwithstanding the country of issuance of said foreign judgment (see 3.4 Process of Enforc- ing Foreign Judgments ). sidered to be six years. Before ADGM Courts
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