Claim
In this case the Claimant sought, on two grounds, a stay of
execution of a judgment. The Claimant's first argument in
support of the stay was that the case related to property
ownership. The second argument was that the judgment was the
subject of an appeal to the Court of Cassation.
Facts of the case
A judgment was issued by the Court of First Instance in favour of
the Defendant, which judgment cancelled a Sales & Purchase
Contract entered into between the parties and compelled the
Claimant to pay the Defendant the amount of AED 3,184,500 plus
interest and legal fees. The Court of Appeal upheld the first
instance decision and the Defendant consequently filed a claim with
the execution judge in order to enforce the judgment. The Claimant
subsequently appealed to the Court of Cassation by filing an urgent
request that the execution of the judgment be stayed based on
article 175 of the UAE Civil Procedure Law (CPL).
Court of First Instance
As to the form
The Court of First Instance confirmed that pursuant to Article
220(1) of the CPL, only the execution judge is competent to decide
on the temporary execution objection.
As to the substance
The effect of Article 175 of the CPL was clarified by the Court of
First Instance. It was held that there are two categories of stays
of enforcement capable of submission to the Court of Cassation,
being a compulsory stay of enforcement and an optional stay of
enforcement.
Compulsory stays of enforcement are normally granted when the
appealed judgment is related to divorce, annulment of marriage or
proprietorship/ownership. Optional stays of enforcement are
generally granted in other circumstances falling within the full
discretion of the Court.
The Court ruled that with respect to compulsory stays of
enforcement the objector may lodge its objection with the execution
judge on the grounds prescribed by Article 175 of the CPL. The
granting of optional stays of enforcement, on the other hand, falls
within the full discretion of the Court.
Importantly, however, the Court held that the appeal of a judgment
relating to the proprietorship/ ownership of a property
automatically attracts a stay of enforcement.
Finally, the Court ordered that as the appealed judgment related to
the proprietorship / ownership of a property and its execution
should be stayed.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
