EGYPT Law and Practice Contributed by: Mohamed Osama, Hana Elbarbary and Hamza Shehata, Shehata & Partners
need to notify its counterparty (the debtor or a third party) and file a regular case to prove the validity of the seizure within a period of eight days: • the creditor does not have a writ of execution; • the creditor has a judgment issued in its favour, however, it is not enforceable yet; and • the creditor’s value of debt is not determined yet. Accordingly, if none of the above three situations exist, the creditor would be eligible to apply for the provisional seizure without the need to follow on with filing a regular case to prove the validity of the seizure itself. 6.2 Arrangements for Obtaining Urgent Injunctive Relief The same timelines indicated under 4.7 Applica- tion/Motion Timeframe apply. 6.3 Availability of Injunctive Relief on an Ex Parte Basis Injunctive relief can be obtained on an ex par- te basis. Please refer to 6.1 Circumstances of Injunctive Relief . 6.4 Liability for Damages for the Applicant In the event of a provisional seizure vis-à-vis the debtor, which has subsequently been ruled as invalid, a fine will be applied against the credi- tor amounting to EGP800. Further, the debtor will be eligible to request compensation from the creditor according to the general rules under the Egyptian Civil Code. In addition, under either the provisional seizure vis-à-vis the debtor or vis-à-vis a third party, and where the seizure was proven to be invalid, the debtor/third party will be entitled to request com-
pensation against the creditor on the basis of the rules pertaining to the abuse of the right to justice. 6.5 Respondent’s Worldwide Assets and Injunctive Relief Egyptian courts do not have jurisdiction to grant injunctive relief against worldwide assets of the respondent. 6.6 Third Parties and Injunctive Relief A provisional seizure can be requested vis-à-vis a third party. Please refer to 6.1 Circumstances of Injunctive Relief for further details. 6.7 Consequences of a Respondent’s Non-compliance In the event of a provisional seizure vis-à-vis the debtor, if the latter fails to comply with the terms of the injunction and disposes of the assets in their custody, then the debtor will be subject to an imprisonment penalty and a fine (Article 342 of the Penal Code). In the event of a provisional seizure vis-à-vis a third party, if the latter fails to comply with the terms of the injunction, then the third party will be liable for the debt itself in its own money if they did not declare exactly what exists in their custody that belongs to the debtor. Further, if it has been proven that the third party has dis- posed of the assets in their custody to harm the creditor, then the third party will be subject to an imprisonment penalty and a fine (Article 341 of the Penal Code and Articles 335, 343, 352 of the Procedural Code).
7. Trials and Hearings 7.1 Trial Proceedings
The lawsuit is registered with the clerk of the competent court. Following the registration
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