The Dubai Commercial Court of Appeal upheld the declaration of bankruptcy of a debtor in the amount of 337 million dirhams, after he was unable to pay or settle his debts, and all his property of all types and forms were seized and distributed to creditors.
According to the lawsuit papers, the bankruptcy applicant submitted a request to accept the opening of his bankruptcy procedures, in April 2023, because he is a debtor and has stopped paying his debts for 30 working days due to the instability of his financial situation. The court of first instance examined the request and appointed an expert to evaluate the applicant’s financial situation, and after submitting the report The court consulted the opinion of the Public Prosecution, which recommended opening bankruptcy proceedings, and the court decided in November 2023 to accept the request to open the debtor’s bankruptcy proceedings.
The details stated that the bankruptcy trustee initiated the legal procedures and deposited a list of creditors, and their number reached three creditors, namely: banks within the state, with a total amount of 337 million dirhams, and two bank agents attended and deposited two memoranda at the conclusion of which they requested that the case not be accepted because the plaintiff did not complete the necessary data and documents to accept the application. Initiating the bankruptcy procedures stipulated in Article No. (73) of the Bankruptcy Law, and rejecting the case for lack of validity and lack of proof. The court of first instance ruled in its session last March declaring the debtor’s bankruptcy, initiating the sale, liquidation and distribution procedures to the creditors, and disqualifying the debtor and restricting him from managing his money or Dispose of it or pay any claims that arose before the issuance of the decision to open the procedures, or borrow any amounts in his name, and obligated him to hand over to the procedures trustee all his funds and documents, which are under his hands within five days from the date of the ruling, and to impose a precautionary seizure on the balances, accounts and funds of the debtor declared bankrupt, the subject of the bankruptcy application. All banks and their branches in the country, and real estate, stocks, bonds, cars and vehicles belonging to them, with the competent authorities.
Lawyer Dr. Alaa Nasr, the legal representative of the appellant (declared bankrupt), said that the ruling of the court of first instance was not acceptable to the two defendant banks, so the two banks appealed in order to cancel the appealed ruling and rule again that the case was not accepted because the plaintiff did not complete the necessary data and documents to accept the opening request. Bankruptcy procedures stipulated in Article No. (73) of the Bankruptcy Law, indicating that the court considered the appeal, and stipulated in its ruling that the creditor or all creditors have an ordinary debt of not less than one hundred thousand dirhams, and that they submit a request to the court to open bankruptcy procedures, in accordance with the provisions of Bankruptcy Law if the creditor has previously excused the debtor in writing to pay the debt due and the debtor does not take the initiative to pay it within 30 consecutive business days from the date of his notification.
He added that the trial court has the right to evaluate the evidence presented to it, including the report of the expert assigned to the case, and adopt it when it is satisfied with it, and the reasons on which it was based, and that whenever it decides to adopt it based on its reasons, it is no longer bound by the objections that the opponents direct to it whenever the report is He has undertaken to respond to it, and when the court finds in his report and in the rest of the case papers sufficient to form its doctrine in the case, and that what was stated in the final business report is that the debtor requesting bankruptcy does not have the ability and capacity to continue his business and conduct his activities, and the debtor has not expressed his willingness to pump any amounts to pay Debts, and therefore restructuring procedures are not appropriate for the debtor, and it is one of the legally prescribed cases for declaring the debtor bankrupt, and therefore the court orders the debtor to be declared bankrupt.