UAE civil court verdicts against loan defaulters can be executed in India

Indian expats in the UAE can no longer seek safe haven in their home country if they are convicted in a civil case here. Verdicts against bank loan defaulters and other civil case convicts can now be executed in India, legal experts told Khaleej Times.
On January 18, the Indian Ministry of Law and Justice issued a gazette notification declaring the UAE as a "reciprocating territory" for the Code of Civil Procedure. It also identified the UAE courts whose orders can be executed through Indian courts.
The notification in the official gazette said: "In exercise of the powers conferred by Explanation 1 to Section 44A of the Code of Civil Procedure, 1908 (5 of 1908), the Central Government hereby declares, United Arab Emirates to be a reciprocating territory for the purposes of the said section."
The courts here are Federal Supreme Court; Federal First Instance and Appeals Courts in Abu Dhabi, Sharjah, Ajman, Umm Al Quwain and Fujairah; Abu Dhabi Judicial Department; Dubai Courts; Ras Al Khaimah Judicial Department; Courts of Abu Dhabi Global Markets; and Courts of Dubai International Financial Centre.
Anuradha Vobbilisetty, a lawyer with Dr Ibrahim Al Mulla Legal Consultants, said legal teams are still "awaiting clarifications on the matter". "The execution processes continue to remain unclear. However, it is a very good decision as there are several hundreds of such convicts living in India."
According to Vobbilisetty, between 2008 and 2012, many people have fled with millions from banks in the UAE. "Once it comes to executions, convicts will be forced to attach land and other immovable properties and stop taking advantage of the loophole. It also comes as a warning to those who fled to India after taking huge loans from banks in the UAE."
dhanusha@khaleejtimes.com