Dubai debtors who prove inability to pay could avoid imprisonment

November 2, 2023 at 4:33 PM

Debtors in Dubai civil matters able to prove their inability to meet court-ordered payments are not subject to arrest warrants in most cases, the emirate’s highest judicial body has said.

According to The National, Creditors must provide evidence of the debtor’s solvency before the court can issue an arrest warrant for unpaid dues.

The Dubai Court of Cassation made the announcement on October 24, in an attempt to clarify the clauses of article 319 of the federal civil procedure law and avoid creditors making claims without sufficient cause.

The court said insolvency should be presumed unless proved otherwise and that creditors need to provide evidence.

Dr Hassan Elhais, a legal consultant at Awatif Mohammad Shoqi Advocates and Legal Consultants in Dubai, said the law allows for the imprisonment of debtors who fail to comply with court-ordered payments unless they can prove their insolvency. (NewsWire)