The UAE’s Ministry of Justice has recently issued a decision regulating the Bankruptcy Court. This step aims to develop a judicial structure that supports the national economy and enhances the effectiveness of the justice system in dealing with cases of financial distress and bankruptcy.
According to the decision, the Bankruptcy Court will be headquartered at the Abu Dhabi Federal Court of First Instance and will adjudicate all claims and disputes arising from the implementation of the provisions of the Federal Decree-Law on Financial Reorganization and Bankruptcy.
Court to have chief judge and several specialized judges
The decision also authorizes the Federal Judiciary Council, when necessary, to establish one or more court headquarters in any of the emirates affiliated with the original court, with jurisdiction over the same claims and disputes.
The UAE’s Ministry of Justice said the Bankruptcy Court shall consist of a chief judge, whose rank is no lower than that of an appeals judge. It shall also have a number of specialized judges appointed by a decision of the Federal Judiciary Council.
The resolution also stipulates the establishment of a bankruptcy department within the court, headed by a judge with a rank no lower than that of an appeals judge. This department will be responsible for a number of tasks, most notably receiving applications, objections, grievances, registering applications and issuing notifications to stakeholders in accordance with the provisions of the decree-law.
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Decision authorizes court to seek expert assistance
The UAE’s Ministry of Justice’s decision also defines the Bankruptcy Court’s administrative units and their jurisdictions, ensuring the integration of roles and effective performance.
It also includes provisions specific to bankruptcy experts and advisors, authorizing the court to seek the assistance of those with expertise and specialization in this field to carry out several tasks, including managing the debtor’s assets and businesses, implementing precautionary measures, expediting procedures, meeting with creditors, and hearing the debtor or their representative on matters related to their debts, assets or businesses.
This resolution represents a qualitative step towards establishing a legal environment that supports financial stability, contributing to expediting procedures, striking a balance between the requirements of justice and ensuring the continuity of economic activity in accordance with the highest standards of efficiency and transparency.
