Legal principles adjudicated by court of cassation.
  • It is established in Dubai Court of Cassation that the purport of the provisions of Article 645/1, 647/1, 650/1, 801/1, 802/1 of the Commercial Transactions Code, stipulate that, the Creditor of a Limited Liability Company may apply to the court to declare its bankruptcy, if it defaulted to pay commercial debts due by it on their maturity because of disorder of its financial positions and stake of its trust. And established that, if the debtors refusal to pay his commercial due debts without having legal reasons, this will be regarded as presumption against him,   however he will not be considered defaulter in the above context because, may be the reason for this refusal is contingent reason, while he is capable to pay or may be due to dispute in the debt in respect of its correctness or amount or maturity date or its abatement for any reason or in order to adapt, default in the abovementioned meaning is a matter of law, which the court of merits must consider by itself, and subject to the control of cassation court as the state of default to pay is one of conditions which the law requires to declare the debtor’s bankruptcy. And it is established that it is not  a condition to declare the debtor’s bankruptcy, when he was defaulted to pay his several commercial debts, but only his default to pay one commercial debt is sufficient to declare his bankruptcy, since that will prove his financial disorder shake his trust.

 

  • It is hereby established by Dubai Cassation Court judiciary, that the provision of para first  of Article 220 of Civil Procedure Law stipulates  that   the execution judge alone solely is competent to execute the executive deed and to decide all execution  temporary disputes expeditiously, he is also competent to issue judgments and orders related to this jurisdiction to execute the executive deed and decide all execution disputes whatsoever their amount or nature, temporary or material, save what is expected by special provisions. And  in order the dispute in execution be valid, the execution , the execution must be compulsory and related to the dispute in execution procedure.  And if the dispute does not relate to execution procedure or to continue proceedings, then it shall not be regarded as dispute in execution and accordingly is regarded away from the execution judge competence even if it raised during the compulsory execution.



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