Court of Cassation issues clear guidelines on how and when any arrest can be made.
In what is seen as a landmark judgement, debtors – personal and business - in the UAE will no longer face the risk of arrest if they failed to meet their payment obligations. This applies to individuals as well as businesses.
“As grounds for such defaults differ, it would be effective if the courts investigated the set of circumstances to qualify. If there was any kind of ‘bad faith’ of the debtor for the default and general inability to pay.
Due to the fact that imprisonment and arrest are considered severe punishments, the new judgement seems to be a reasonable mitigation of the general rules," commented Alexander Kukuev, Managing Partner at UPPERCASE LEGAL Advisory, to the Gulf News media.
“Moreover, the judgement imposes the burden of proof of ‘richness’ of the debtor on the creditor l, which is fair as the presumption of richness of the creditor would lead to abuse of right of the latter,” he added.
Read more on the Gulf News website