Interim Measures in Judicial Proceedings in UAE

1) What conditions must be met for the application of interim measures in the UAE?

In the UAE, precautionary measures are available to protect rights and interests before a final judgment is issued in cases. 

To apply for these measures, a petition must be filed with either the court looking at the substantive case or with the judge of urgent matters in any of the following situations:

1. When creditor seeks a restraining order (interim freeze order) against properties of its debtor to secure the creditors’ rights, however only in the following events:

• If the debtor has no permanent place of residence in the UAE;
• If there is a risk that the debtor syphons, hides, or transfers titles of its assets, such risk must be substantiated with concrete evidence;
• If the securities, which guarantee the debt, are at risk of loss.

2. A property owner may request a seizure of the tenant’s belongings within the leased property.

3. A creditor holding a casual or certified credit instrument related to an outstanding and unconditional debt, or when the creditor is a beneficial of a non-executable judgment for a fixed value debt.

4. An employee to secure his/her entitlements, when a settlement of his/her dues with the employer is not reached, provided his/her claim is estimated by the Ministry of Human Resources and Emiratization.

2) What types of interim measures can be applied by UAE courts?

UAE courts can implement various precautionary measures to protect rights and ensure judgments are enforced, including:

1. Interim Freeze Order: This measure allows the court to apply a temporary free on the defendant’s assets or funds to prevent disposal until a final ruling is issued in the case. It can involve freezing bank accounts, properties, stocks, or any other assets.

2. Travel Ban: The court may issue a travel ban order to retrain the debtor from traveling outside the UAE if there’s a likelihood that leaving the country would hinder enforcement of the judgment or result in avoiding enforcement of rights.

3. Seizure of Ships and Aircraft: The courts may order to seize a vessel or an aircraft that is registered in the UAE or when found within the UAE’s territory, if the court found that such action is necessary to protect creditor rights.

4. Appointment of a Receiver: The court may appoint a receiver to manage disputed assets and to prevent asset deterioration or misuse, until a judgment is made on the dispute.

5. Freezing Stocks or Shares: In certain cases, the court may freeze a defendant’s right to control or dispose of its shares or stocks held in one or more companies.

3) What documents and evidence are required to file a motion for interim measures?

To apply for precautionary measures in the UAE, the applicant must submit supporting documents and evidence demonstrating the seriousness of his motion and his entitlement to make such a petition application. 

Required documents typically include:

1. Petition: The creditor or their legal representative must submit a petition to the judge of urgent matters if the main substantive lawsuit has not been filed, noting that a formal lawsuit must be registered within eight days if an order in respect of his petition is granted. Alternatively, the petition may be filed to the court hearing the main lawsuit if already registered.

2. Evidence of Creditor’s Claim: Documents demonstrating the creditor’s claim, such as contracts, agreements, invoices, receipts, or other supporting documents, must be provided.

3. Proof of Urgency: The applicant should present evidence indicating that the absence of applying the required interim measures could result in harm or endanger to the applicant’s ability to recover or enforce his claim. Proof may include statements detailing the nature of the potential risks or the risk of disposing of the asset.

4. Creditor’s Covenant / Undertaking: The creditor must issue a covenant statement in a form of undertaking to indemnify the debtor of any damages that the debtor may suffer or sustain as a result of wrongly applying the precautionary measures.

5. Financial Bond: Judge may often require a financial guarantee from the applicant to approve a precautionary measure, ensuring protection of the opponent’s interests if the action is later deemed unwarranted.

6. Identification Documents: The applicant must provide copies of the debtor’s Emirates ID Card or passport, or trade license if the debtor is a legal entity.

7. Information of the Targeted Assets: The applicant may support his petition with details of the debtor's assets that he targets to freeze, this can assist the court in evaluating his petition.

4) How long do interim measures last in the UAE?

Precautionary measures in the UAE are temporary and intended to protect rights until a final judgment is issued or the reason for the measure is no longer valid. The duration depends on the type of measure and the court’s assessment, including:

1. Issuance of Final Judgment: In many cases, precautionary measures remain valid until a final judgment is issued, after which they may be canceled or converted to permanent measures depending on the ruling.

2. Change of Circumstances: If the circumstances for which the precautionary measure ceased (e.g., debt repayment or settlement), the measure may be lifted before a final judgment is issued on the substantive claim.

3. Expiry of the Order: Some measures, like asset freezes or travel bans, are ordered for a specific period.

5) Can interim measures be appealed in UAE?

Both the applicant, or his opponent (as the case may be), may file an objection against the order/decision issued in relation to a petition regarding an interim measure. The objection must be filed with the same judge who issued the order/decision. The party who files the objection must also apply to notify and service his opponent, giving him a chance to defend his position.

1. Objection Period: The objection must be filed within seven (7) days from the date the order/decision is issued.

2. Substantiation: The objecting party must demonstrate either (a) the order/decision was unjustified, (b) there is misapplication of the law, or (3) there are new circumstances warrant reconsideration of the order/decision.

3. New Evidence: The court may consider new evidence or additional circumstances affecting the legitimacy of the original precautionary measure.

4. Court Decision: After reviewing the objection, the court may confirm, modify, or cancel the precautionary measure based on the facts and legal grounds.

The judge’s decision on the objection application may be appealed before the court of appeal on similar grounds. 

Therefore, the UAE judicial system ensures fairness by allowing both parties to object, thus promoting justice and preventing the misuse of precautionary measures.

Author: Firas Dabbagh