This article highlights a recent order issued by the Dubai Courts in commercial execution proceedings, where Alsuwaidi & Company successfully secured an arrest and production order against a company manager in connection with an outstanding debt exceeding AED 7.4 million. The matter involved complex enforcement proceedings and allegations of deliberate obstruction of execution measures under Article 322 of the UAE Civil Procedures Law.
BACKGROUND
The proceedings arose during the enforcement of a commercial debt amounting to AED 7,413,846.09. During the course of the execution proceedings, the Court directed the company manager to submit a certified financial report explaining the failure to satisfy the debt.
Despite being properly notified of the Court’s request and having full knowledge of the proceedings, no financial report was submitted. Based on the circumstances of the matter, the Court concluded that the conduct amounted to deliberate obstruction of the execution proceedings.
KEY ENFORCEMENT ISSUES
Whether the failure to comply with the Court’s direction to submit a certified financial report constituted deliberate obstruction of enforcement proceedings.
Whether sufficient grounds existed for the execution court to issue an arrest and production order against the company manager pursuant to Article 322 of the UAE Civil Procedures Law.
COURT FINDINGS AND EXECUTION MEASURES
Following review of the circumstances and the manager’s failure to comply with the Court’s direction, the execution court issued an arrest and production order against the company manager under Article 322 of the UAE Civil Procedures Law.
Execution courts generally exercise caution when considering such measures in commercial matters, particularly given the evidentiary threshold associated with proving intentional obstruction or concealment in execution proceedings. The matter therefore highlights the importance of strategic enforcement measures and detailed evidentiary preparation in complex recovery proceedings.
WHAT THIS MEANS FOR CREDITORS AND ENFORCEMENT PROCEEDINGS
The order demonstrates that UAE execution courts may, in appropriate circumstances, adopt firm enforcement measures where parties deliberately obstruct execution proceedings or fail to comply with court-directed disclosure obligations.
The matter also highlights the increasing importance of strategic execution proceedings and procedural enforcement tools in high-value commercial recovery matters before the UAE courts.
The matter was led by Reda Hegazy, Partner and Head of the Litigation Practice Group, and Ahmed Adel, Legal Researcher specialising in litigation and execution matters before the UAE courts.