38.6c New Delhi, India, Friday, March 29, 2024
International

Rulings Of UAE Courts In Civil Cases Now Enforceable in India

By LawStreet News Network      08 February, 2020 09:02 PM      0 Comments
Rulings Of UAE Courts In Civil Cases Now Enforceable in India

On January 17, 2020, the Ministry of Law and Justice issued a notification allowing rulings of Emirati courts in civil cases to become enforceable in India. This means that loan defaulters who have fled to India without repaying loans in Dubai, can be sued by banks in UAE which can get a decree from Emirati courts in their favour and get them enforeced against defaulters in India. Many corporates had taken loans from UAE based banks and absconded to India without repaying their debts. Reportedly, at least 9 banks have initiated legal action to recover loans, which amount approximately to Rs. 50,000 crores, from defaulters in India.

“Earlier UAE-based banks had no recourse to enforce judgements directly to recover their corporate or retail loans given to Indians in the UAE, but now they can take action in India. So, now UAE banks can initiate execution proceedings in India after they take a decree from a UAE court and may also explore initiating proceedings under the IBC (India’s Insolvency and Bankruptcy Code),” said Ajay Monga, a partner at law firm SNG & Partners.

These banks include UAE-based Emirates NBD, Mashreq Bank and Abu Dhabi Commercial Bank. A few other lenders such as Doha Bank, National Bank of Oman and National Bank of Bahrain, which have exposure to Indian entities or citizens through their branches in Dubai or Abu Dhabi, have also either already moved courts in UAE or are in the process of doing so in the coming weeks, the people said.

Most of the loan defaulter from India are Corporates. Subsidiaries of Indian Companies based in Dubai borrowed loans there and fled back to India without repaying them. The culprits' list also includes personal loan defaulters who did the same. Most of the loans were taken in the last 10-15 years.

“Most of the cases are of corporate loans and that is also the priority for the banks as the amounts involved are huge. But some banks also have retail loan exposure to India,” said one of the people.

In its notification, the Ministry of Law and Justice said that UAE would be a ‘reciprocating territory’ under Section 44A of Civil Procedure Code, 1908.  Section 44A essentially says that any decree passed by the superior courts of any ‘reciprocating territory’ may be executed in India, as if it has been passed by Indian courts. Similarly, UAE will allow the execution of rulings of Indian courts in civil cases within it's territory. The government notification allows the ruling of two UAE-based federal courts and five other courts to be enforceable in India.

 

Author – Satwik Sharma



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

arvind-kejriwals-plea-for-interim-release-rejected-by-delhi-high-court
Trending Judiciary
Arvind Kejriwal's plea for interim release rejected by Delhi High Court [Read Order]

Delhi High Court rejects Arvind Kejriwal's plea for interim release in money laundering case related to liquor policy scam, pending ED's response.

28 March, 2024 10:50 AM
youtuber-strings-plea-against-youtube-accounts-suspension-andhra-pradesh-hc-issues-notice-to-centre-google
Trending Top Stories
BREAKING: Youtuber String’s plea against Youtube accounts suspension: Andhra Pradesh HC issues notice to Centre, Google

Andhra Pradesh High Court issues notice to the Centre and Google LLC on Youtube journalist String’s plea against suspension of its accounts by Google (which owns Youtube).

28 March, 2024 11:26 AM

TOP STORIES

delhi-liquor-scam-court-remands-arvind-kejriwal-to-ed-custody-till-march-28-read-remand-application
Trending Judiciary
Delhi liquor scam: Court remands Arvind Kejriwal to ED custody till March 28 [Read Order]

Delhi liquor scam: Arvind Kejriwal remanded to ED custody till March 28. Court grants agency permission for interrogation in liquor policy case.

23 March, 2024 11:53 AM
sc-dismisses-centres-plea-for-review-of-judgment-directing-ed-to-furnish-written-grounds-of-arrest-to-pmla-accused
Trending Judiciary
SC dismisses Centre’s plea for review of judgment directing ED to furnish written grounds of arrest to PMLA accused [Read Order]

Supreme Court dismisses Centre's plea, upholds judgment mandating Enforcement Directorate to provide written grounds of arrest in PMLA cases.

23 March, 2024 03:14 PM
kerala-hc-to-hear-lesbian-couples-plea-against-forced-conversion-therapy-on-april-9
Trending Judiciary
Kerala HC to hear lesbian couple’s plea against forced conversion therapy on April 9

Kerala HC will hear a lesbian couple’s plea highlighting that one of them was subjected to forced conversion therapy.

23 March, 2024 03:30 PM
how-can-people-be-compelled-to-vote-madras-hc-asks
Trending Judiciary
“How can people be compelled to vote? Madras HC asks

“How can people be compelled to vote?”, the Madras HC queried in a plea asking employers in Tamil Nadu to demand proof from employees of having voted on polling day.

23 March, 2024 05:04 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email