New legislation covers asset seizure
Law outlines conditions for creditor’s who wish to seize assets or property from delinquent debtors.
June 14, 2010 10:50 by Rasha Reslan
Seizure of a debtor’s assets will be subject to new legislation issued by the Dubai Court of Cassation, Emirates Business reported Monday.
Provisional seizure of a debtor’s moveable assets will now be governed by a new ruling which establishes three conditions under which the seizure of assets and real estate / property may be accomplished. The ruling stipulates that if the debtor has no stable residency, moveable assets can be seized. Additionally, if the creditor fears the debtor will flee or conceal his funds, or if the debtor’s security deposits are under threat due to losses suffered, then seizure is permitted under the new ruling.
The new ruling was issued in connection with a pending case over a disputed plot of land, which was “allegedly split into different plots by defendants in the case to obtain two bank loans of Dh75 million and Dh27m,” the report said.