On 17 January 2020, the Indian Ministry of Law and Justice declared the UAE to be a ‘reciprocating territory’ for the purposes of section 44 of India’s Code of Civil Procedure (Law No. 5 of 1908) (the ‘CPC’), which addresses the enforcement of civil judgments in India (the ‘Notification’).

As a ‘reciprocating territory’, judgments of the following ‘Superior Courts’, listed in the Notification, can now be enforced in India as if they were local Indian Court judgments:

1. the UAE Federal Supreme Court;

2. the Federal, First Instance and Appeals Courts in the Emirates of Abu Dhabi, Sharjah, Ajman, Umm Al Quwain and Fujairah;

1. the Abu Dhabi Judicial Department;
2. the Dubai Courts;
3. the Ras Al Khaimah Judicial Department;
4. the Courts of Abu Dhabi Global Markets; and
5. the Courts of Dubai International Financial Centre.

Certain judgments issued by courts in the United Arab Emirates (“UAE”) will now be enforceable in the Republic of India (“India”) without re-examining the underlying case. This puts UAE court judgments on par with judgments emanating from courts in certain other jurisdictions such as the United Kingdom, Singapore and Hong Kong. This development has been well received as it removes a critical technical obstacle in the enforcement of UAE court judgments in India and gives effect to an important reciprocal arrangement.

After the Gazette Notification, a successful party in proceedings brought before a Relevant Court can directly approach the competent court in India to seek execution of a judgment relating to the payment of a sum of money without the Indian court re-trying or re-examining the case. This Notification will plug the gap in enforcement of commercial and civil disputes relating to payment of money, such as loan defaults, where delinquent Indian expatriates would no longer be secure in India providing a haven if proceedings in the Relevant Courts of the UAE go against them. Backed by strong political and people to people interaction, UAE-India trade has grown to USD 60 billion and is poised for further growth. This development provides UAE parties with a level of security that is likely to increase confidence in Indian counterparts and consequently support this growth.

In short, the said Gazette notification dated on 17^th January 2020 of declaring UAE as a reciprocal territory makes it easier for the creditors in the UAE to recover the debts from the runaway debtors who have returned to (absconded to) India.

1, What are the steps and procedures to execute the UAE Judgment in India?

As the first step, the request for legal assistance for the execution of a decree shall be made through the Ministry of Justice, UAE, with the following documents duly authenticated by Ministry of Justice:

An official copy of the decree.

A certificate showing that the decree is final and executable unless the same is provided in the decree itself.

A certificate from the court stating the extent, if any, to which the decree has been satisfied and/or adjusted.

In case of a decree in absentia, an authenticated copy of the summons or any other document  showing that the defendant was duly served with the summons.

An official copy in a proper executable form, if the request is only for the execution of the decree.
English translation of the decree

The Final Judgment from a UAE court, along with other re levant documents, need to be forwarded for execution in Indian Courts only after the duly attestation from the concerned departments in UAE. Judgment must be legally translated to Arabic language and both the original (in Arabic) and English translated true copy must be attested from Foreign Affairs, Ministry of Justice and finally from Indian Consulate.

Secondly, we file the suit in the respected District Court and the court issues a precautionary injunction order on the runaway debtor’s assets without their knowledge as the initial step (time frame for injunction 1 – 3 months) and then summoning the debtor for a hearing to evaluate his objection arguments on the said case. Finally, failing to prove the points from debtor side in the court causes to have a judgment of permanent attachment on his/her properties and subsequent action of auction to recover the money from the debtor against creditor’s claim. Precisely civil law in India permits or provide adequate measures to protect the interest of creditors at the admission stage of the Execution Petition itself by granting an injunction order on debtors’ assets.

In case, the assets of the debtors are transferred already beforehand to any other party in a bad intention and in an anticipation of any kinds of civil suits or commercial suits against him/her, those transactions will be revoked by the respective court and will be temporarily attached (injunction) unless until the case is over. Other coercive actions, including arrest, can be enforced if the assets were transferred beforehand to someone in a bad intention to skedaddle from the legal proceedings of creditors.

2, What is Tasheel and how Tasheel can help you to recover the money from the debtors?

“Tasheel Legal & Debt Collection Dept” has an extensive network of associate law firms in all districts of all major cities and in every nick and corner of the country.  All these Lawyers and firms are well qualified and experienced with the civil laws and aware of the court procedures with regards to the new amendment.

Besides, we have a team of retired police officials and private investigators for investigating the assets of the debtors in India, from all the parts of it, which can save us from all the hurdles, hassles and unnecessary delays. We always advise our clients to have a scan on debtors’ assets and its history before initiating any litigation process against the debtor since litigation against any bankrupt debtor is of no use to the creditor nothing other than keeping the debtor in jail for a certain time.

Before starting any legal action or during the legal proceedings, our Debt Collection Department tries to recover the amount through an amicable settlement by meeting the debtor in person and educating, convincing him of the bad consequence of the civil suit. However if the debtor is not convinced the pros and cons in the initial stage, probably get panic once the injunction order is issued by the court on his properties and come to a settlement plan soon after, saves our litigation cost and the legal processing time.

In Tasheel, We got Lawyers, Debt Collectors, Retired Police officials and Private investigators, who all have their roles with regards to the foreign execution in different stages.  Each of our staff has got the right qualification and experience in their respective field and each of them work so effectively & efficiently to provide the desired result.

3, What are the services Tasheel provides with respect to the enforcement of UAE Judgments in India?

Our service begins with an initial study of the court judgment and a preliminary consultation with the creditor, which is absolutely free of cost. There after we handle all the PRO services for the legalization of UAE court judgments and other relevant documents for the execution of these judgments in the appropriate District courts in India.

1, The first step we use to do is running a scan report on the assets of the debtor to learn whether the litigation is worth of recovering assets from him or not. If we find properties on his name, then we can either initiate legal proceedings against him or start a negotiation beforehand with the debtor.

2, Upon the receipt of attested judgment and the relevant documents of the case in UAE, we can file the execution suit on your behalf against the debtor in the District court in his jurisdiction and get an injunction order immediately on his assets.

3, Before initiating any legal action, soon after running a scan on his assets, our Debt Collection officials try to take the debtor to a negotiation table for an amicable settlement by educating them the pro and cons of the execution suit. 60% of the cases out of this, come to a settlement plan with the debtors before starting any litigation and 80% of the cases come to a settlement soon after getting an injunction order against the debtor.

If the case is not settled amicably, there’s no other option left than starting the litigation. With respect to litigation, we charge our fees only on the successful realization of the claim amount but necessary legal costs and court fees have to be paid as and when it is required.

4, What is the role of Tasheel Debt Collection Department and the recovery chances without litigation?

Before starting any legal action or during the legal proceedings, our Debt Collection Department tries to recover the amount through an amicable settlement by meeting the debtor in person and educating, convincing him of the bad consequence of the civil suit. However if the debtor is not convinced the pros and cons in the initial stage, probably get panic once the injunction order is issued by the court on his properties and come to a settlement plan soon after, saves our litigation cost and the legal processing time.

5, What are the Grounds for refusing enforcement?

The Indian Courts can refuse to execute the UAE judgment, if the judgment falls foul of any of the following in Section 13 of the CPC:

(a) Where it has not been pronounced by a Court of competent jurisdiction;

(b) where it has not been given on the merits of the case;

(c) where it appears on the face of the proceedings to be founded on an incorrect view of 

     international law or a refusal to recognize the law of India in cases in which such law is applicable;

(d) where the proceedings in which the judgment was obtained are opposed to natural justice;

(e) where it has been obtained by fraud;

(f) where it sustains a claim founded on a breach of any law in force in India

6, Can the defendant appeal his or case to a higher court in India?

He can file objection to the execution court in India, as per Rule 2 (e) of Civil Rules of Practice “Execution Petition” means a petition to the court for the execution of any decree or order.

Depending on which Indian Court the execution petition is filed before, there could be two to three levels of appeal and a potential further appeal to the Supreme Court. There is no automatic stay on the execution of the UAE Court judgment in the event of an appeal to the higher Courts in India. The party appealing will have to apply for a stay on the execution. Therefore, once a UAE creditor obtains a first instance execution judgment from the Indian Court, they could proceed to enforce it in India unless the Court ordered a stay on the execution.

7, What is the limitation period of filing the execution of UAE Judgment in India?

As per Article 136 of the Indian Limitation Act, 1963 (which also applies to foreign decrees of a reciprocating territory), a UAE Court judgment can be executed within 12 years from the date when such decree or judgment becomes enforceable. In this regard, a judgment that is still subject to appeal in the UAE might not be enforceable under the Treaty in the Indian Courts until the appeal has been decided.

Conclusion

The Notification has opened up an avenue for execution of UAE Court judgments in India (and Indian Court judgments in the UAE) that was not previously available. It remains to be seen if this leads to a significant increase in cross-border execution activity, but it is a positive development for India UAE trade and the wider relationship between the two countries.