Tag Archives: UAE Judgment

Purchasing a Property in Dubai? All You Need to Know

Court Representation by Top Dubai Lawyers Experts on Dubai Law and the UAE Legal System

In order to purchase a property, a well-drafted Sale and Purchase Agreement is required which is commonly known as SPA in UAE. It is one of the primary requirements for the parties, and the parties can fail to scrutinize this document for a better understanding of their legal status pursuant to the laws of the UAE. Once both the parties, the buyer and seller agree to buy or sell a specific asset, they enter into a Sale and Purchase Agreement. We advise our readers to review the contents of the SPA carefully before signing and to seek legal assistance to protect their rights as per the laws of the UAE.

Every Emirate of UAE has enforced many laws regulating the real-estate transaction within their Emirate. Accordingly, Dubai has also issued laws to offer protection to buyers, post purchasing the property. Even though prevention is always better than cure. Thus, it is advised to all our readers to review the terms of the agreement or at least carefully investigate the following issues before signing the Sale and Purchase Agreement.

 

  1. TITLE DEED:

It is very important for the buyer to investigate or check properly, who is the real owner of the concerned property. Apart from reviewing the title deed, the buyer must also review the rights awarded to the owner of the property and should verify if there are any restrictions. Because the law comes to the assistance of those who are vigilant with their rights, and not those who sleep on their rights. Thus, reviewing the title deed of the property is compulsory.  

 

  1. RECORD OF PROJECT:

Each real estate project in the Emirate of Dubai is registered with either Land Department or through OQOOD as authorized by Real Estate Regulatory Authority of Dubai (RERA). Through convenient access to the website of either authority, one can ensure if the project is registered or not as the authority has provided a non-exhaustive list of approved projects in Dubai.

 

  1. DEVELOPER’S LICENSE:

Dubai Land Department has provided a list of developers registered with them, through which one can ascertain if the developer is holding a valid license and simultaneously registered with the authority. It is most important for the buyer to make sure that, the developer is registered with the Dubai Land Department.

 

  1. PARTIES IN THE AGREEMENT:

The Investors or buyers some time neglect to check the parties involved in the Agreement as sometimes there are many parties to the contract, i.e. the owner, developer, manager and the seller only refers to one party in the contract. Thus, it must be reviewed carefully.

 

  1. PAYMENT SCHEDULE:

The developers usually offer a lengthy schedule for the payments and the terms of the schedule could be extensive. It is very important to check and make sure that, the schedule for payment is linked to the construction milestones, and clearly sets out the amounts and percentages and due dates.

 

  1. ESCROW ACCOUNT:

The developers or contractors are obliged to maintain an escrow account for their projects in Dubai. All the investments made by them or the buyer’s instalments should be submitted in the same escrow account. Thus, it is essential for the buyers to seek details from the developer or RERA of the escrow account to ensure the security of investment amount.

 

  1. DISPUTE RESOLUTION CLAUSE:

Buyers must carefully study the governing law to ensure if the law regulating the contract is the law of the UAE. In addition, he must check the method for resolving disputes which can be either through UAE courts or independent arbitration centers. In case the contract opts for arbitration, buyers must seek legal advice from Arbitration Lawyers in Dubai.

 

  1. TERMINATION CLAUSE:

Termination provisions in a SPA are the most debatable clause as evident from the numerous cases filed before the competent courts in Dubai. In a general termination clause, the Developer retains the initial investment amount paid by the purchaser in the event of termination of the agreement or if the buyer fails to abide by his financial obligations. Accordingly, the buyer must carefully examine the termination clause allowing him to rescind the contract, upon default of seller’s obligations such as delay in handing over the property or failing to register the property with the authority and similar.

 

  1. COMPLETION DATE OF THE PROJECT:

Every sale purchase agreement has a completion date on which the seller will hand over the unit to the buyer. However, we have witnessed numerous cases, wherein the sellers fail to oblige with the hand over date. On the other hand, buyers being unaware of the completion date lose their right of terminating the property and seeking compensation. Therefore, buyers must determine the completion date of the project and should understand the legal consequences for the seller, if they breach the provision of the contract.

 

  1. AUTHORIZED SIGNATORY:

Sometimes, the developers authorize third parties to sign the contract on their behalf which is commonly known as authorized signatories. Thus, the buyers must carefully review power of attorney granting signatory rights to the authorized signatory.

For any queries or services regarding Purchasing Property and Reviewing Property Sale and Purchase Agreements in Dubai and the UAE in general, you can contact us at +971 4 3298711 or send us an e-mail on consultants@uaeahead.com . Also visit our website www.uaeahead.com

Article by ProConsult Advocates & Legal Consultants the Leading Dubai Law Firm providing full legal services & legal representation in UAE courts

Enforcement of UAE Judgments in India – All You Need to Know

Court Representation by Top Dubai Lawyers Experts on Dubai Law and the UAE Legal System

The Central Government of India, on 17th January 2020 notified an amendment to section 44 of the Indian Code of Civil Procedure (CPC), 1908 wherein the United Arab Emirates (UAE) has been declared as a “reciprocating territory” and accordingly, the civil judgments passed by the Courts of UAE can be directly executed in India.

The amendment provides a fast-track route for the UAE companies providing banking and financial services as they can recover the debts and enforce the UAE Court verdicts against the defaulters who fled to India with significant unpaid debts.

The notification issued by the Indian Ministry of Law and Justice reads as below –

“In exercise of the powers conferred by Explanation 1 to section 44A of the Code of Civil Procedure, 1908 (5 of 1908), the Central Government hereby declares, United Arab Emirates to be a reciprocating territory for the purposes of the said section and the following Courts in United Arab Emirates to be superior Courts of that territory, namely: –

(1) Federal Court–

(a) Federal Supreme Court;

(b) Federal, First Instance and Appeal Courts in the Emirates of Abu Dhabi, Sharjah, Ajman, Umm Al Quwain and Fujairah;

(2) Local Courts–

(a) Abu Dhabi Judicial Department;

(b) Dubai Courts;

(c) Ras Al Khaimah Judicial Department;

(d) Courts of Abu Dhabi Global Markets;

(e) Courts of Dubai International Financial Center.”

The outcome of the above notified amendment is that the orders passed by the above-mentioned ‘superior courts’ of the UAE can now be executed in India as if they had been passed by the Indian Courts. However, the benefit is extended to civil decrees only.

As per the Indian laws, the decrees passed by the foreign courts has no evidentiary value before the Indian Courts unless they are declared as ‘reciprocating territory’ under section 44 of the Civil Procedure Code of India.

The term “Reciprocating territory” has been defined under Explanation I of section 44A of the Indian Civil Procedure Code as “any country or territory outside India which the Central Government may, by notification in the Official Gazette, declare to be a reciprocating territory for the purposes of this section; and superior Courts, with reference to any such territory, means such Courts as may be specified in the said notification.”

 

Procedure to be followed for the Execution of Decrees of UAE Courts in India

Section 44A of the Indian Civil Procedure Code, 1908 elaborates the procedure to be followed in order to execute the decrees passed by the UAE Courts in India.

1) A certified copy of the decree passed by the above-mentioned superior Courts should be filed before a District Court in India. The decree may be executed in India as if it had been passed by the District Court.

2) The applicant should, along with the certified copy of the decree, file a certificate from the superior Court stating the extent, if any, to which the decree has been satisfied or adjusted and such certificate shall, for the purposes of proceedings under this section, be conclusive proof of the extent of such satisfaction or adjustment.

(3) The provisions of section 47 of the Indian Civil Procedure Code shall, as from the filing of the certified copy of the decree apply to the proceedings of a District Court executing a decree under this section, and the District Court shall refuse execution of any such decree, if it is shown to the satisfaction of the Court that the decree falls within any of the exceptions specified in clauses (a) to (f) of section 13.

The third condition implies that if the decree passed by the UAE Courts fails to fulfil the requirements provided under section 13 of the Civil Procedure Code of India, it cannot be enforced using the benefit of the subject notification.

Section 13 of the Indian Civil Procedure Code provides for a ‘Test for Conclusiveness’, in failure of which, a foreign judgment cannot be treated as conclusive. In simple words, a foreign judgment can be refused by the Indian Courts in the following circumstances;

(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.

Even though the implementation of the recent notification of the Indian Government is subject to the above procedures and conditions, the declaration of the UAE as a reciprocating territory will have a significant impact as it safeguards the companies here to proceed against the defaulters who fled to India in order to avoid prosecution by the UAE Courts.

Prior to the amendment, executing such judgments in India previously entailed double the cost and time due to filing a fresh suit with the concerned Courts in India; following the standard procedures of acquiring a favourable judgment and then filing an enforcement action against the defaulter. The amendment came up with a solution for all these complications.

For any queries or services regarding Enforcement of UAE Judgments in India, you can contact us at +971 4 3298711 or send us an e-mail on consultants@uaeahead.com . Also visit our website www.uaeahead.com

Article by ProConsult Advocates & Legal Consultants the Leading Dubai Law Firm providing full legal services & legal representation in UAE courts