UAE creates Bankruptcy Court to handle related financial disputes

In a monumental decision on Thursday, the Ministry of Justice announced a decision regarding the organisation of the Bankruptcy Court, which will be headquartered at the Abu Dhabi Federal Court of First Instance.

The court will be responsible for adjudicating all applications and disputes arising from the implementation of the provisions of the Federal Decree-Law on Financial Reorganisation and Bankruptcy.

Recommended For You

E-Home Movers expands office relocation services to power Dubai’s business growth

US: Cleaning woman shot dead by homeowner after arriving at wrong address

Dubai: How residents can avoid power cuts amid rainy season; 6 steps to take

Turkey issues genocide arrest warrant against Israel PM Netanyahu

Ajman's real estate ascent: Why people are moving to UAE's smallest emirate

 

The Federal Judiciary Council will also be able to establish one or more branches of the court in any other emirate, subordinate to the main court, to handle these applications and disputes.

Abdullah Sultan bin Awad Al Nuaimi, Minister of Justice and Chairman of the Federal Judiciary Council issued the decision. This aims to develop the judicial infrastructure that supports the economy and enhance the efficiency of the justice system in dealing with cases of financial distress and bankruptcy.

What the decision outlines

The court shall consist of a chief judge with a rank no lower than that of an appellate judge, and several specialised judges appointed by the Federal Judiciary Council.

A bankruptcy division will also be created within the court, headed by a judge of at least appellate rank, which will be responsible for tasks, including receiving applications, objections, and grievances, registering applications, among others.

The decision also defines the administrative units affiliated with the court and their respective jurisdictions, ensuring role integration and operational efficiency.

It further includes provisions concerning bankruptcy experts and consultants, allowing the court to engage professionals with relevant experience and expertise to perform various tasks such as managing the debtor’s funds and business operations, implementing precautionary measures, expediting procedures, meeting with creditors, and hearing the debtor or their representative on matters related to debts, assets, or operations.

This move represents a significant step toward establishing a legal environment that supports financial stability, facilitates procedural efficiency, and ensures a balance between the requirements of justice and the continuity of economic activity in accordance with the highest standards of efficiency and transparency.

Meher Dhanjal

meher@khaleejtimes.com

Meher Dhanjal is a Digital Journalist who breaks news first and breathes second. She loves chasing page views and finding stories that tug at readers’ heartstrings.