Dubai civil cases: avoiding arrest warrants for unpaid debts

Creditors must submit proof to the court to prove debtors have money.

In Dubai’s civil cases, the highest judicial body in the emirate has clarified that individuals who demonstrate their inability to pay court-ordered debts will typically not face arrest warrants.

Proving Insufficiency of Funds to Avoid Arrest

To warrant an arrest warrant for unpaid dues, creditors are required to establish that the debtor possesses the necessary funds to fulfill the debt. If the debtor can prove their inability to pay, arrest warrants can be avoided.

Dubai Court of Cassation’s Clarification

The Dubai Court of Cassation issued this clarification on October 24, aiming to provide clarity regarding Article 319 of the federal civil procedure law. This measure seeks to prevent creditors from making unnecessary claims and ensure fairness in debt collection.

Presumption of Insolvency

The court’s stance is that insolvency should be assumed unless there is substantial evidence to the contrary, shifting the burden of proof onto creditors. Creditors must furnish evidence to demonstrate the debtor’s capacity to pay.

Legal Consultant’s Insights

Dr. Hassan Elhais, a legal consultant at Awatif Mohammad Shoqi Advocates and Legal Consultants in Dubai, pointed out that the law allows for the imprisonment of debtors who do not comply with court-ordered payments, unless they can substantiate their insolvency.

This clarification in Dubai’s civil case proceedings emphasizes the importance of evidence and fairness in debt collection, providing individuals with a means to avoid arrest warrants when they genuinely lack the financial resources to meet their obligations.