Enforcing UAE Judgements in India for Debt Recovery
Debt recovery across borders can be a challenging process, especially when it involves different legal systems. ARRMS (India) Pvt Ltd, a leading debt resolution company in partnership with a prominent law firm with a pan-India presence, specializes in cross-border debt recovery. This guide outlines the steps involved in enforcing debt recovery in both the UAE and India.
Decree from UAE for Debt Recovery
To execute a judgment or decree in the UAE for debt recovery in India, the following steps are necessary:
A. Formal Request: Submit a formal request for execution through the UAE Ministry of Justice, supported by authenticated documents.
B. Required Documents:
– An official copy of the final judgment/decree.
– A certificate confirming the decree is final and executable.
– For decrees issued in absentia, an authenticated copy of the summons proving the defendant was duly notified.
– An official copy of the decree in executable form if only execution is required.
– An English translation of the decree if the original is in another language.
Debt Recovery in India
Enforcing a UAE judgment in India for debt recovery involves several legal and procedural steps:
A. Legal Action:
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- File an execution petition in the Indian court within the jurisdiction where the debtor resides, conducts business, or owns property for enforcing UAE judgements.
B. Role of Local Representatives:
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- In contrast to the UAE, Indian lawyers are not permitted to act under a power of attorney for their clients. Their role is limited to court-related processes such as preparing applications, filing documents, and attending court sessions. The Indian legal system requires the direct involvement of the litigant or an authorized representative in most actions, including signing applications and appearing in court when necessary.
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- The execution process in India demands active participation from the litigant at every stage. This includes signing all required applications, appearing in court to provide evidence, accompanying court staff during the service of summons, and assisting in the attachment of properties. Traditionally, Indian lawyers cannot offer services beyond the court process itself, meaning clients are responsible for managing all other aspects. Given these requirements, enforcing a judgment from UAE in India without appointing an authorized representative to act on the client’s behalf would be impractical.
C. Property Identification:
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- To enforce a judgment for payment, the court will typically seize and sell properties owned by the debtor. To facilitate this process, the applicant must provide the court with detailed information about the debtor’s properties. This includes obtaining official ownership documents from government authorities, which are necessary for the court to move forward with attaching and selling the debtor’s assets.
D. Assessing Debtor Solvency:
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- Before initiating enforcement, it is crucial to evaluate the debtor’s financial status and assets.
E. Debtor Tracing:
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- If the debtor is not available at the known address, efforts must be made to trace their whereabouts.
F. Jurisdiction Considerations:
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- Enforcement applications must be filed in the district court that has jurisdiction over the area where the borrower or debtor resides, conducts business, or owns property. Given that borrowers and defaulters are often spread across different regions of India, managing this process can be challenging. The vastness of the country and the need to engage multiple lawyers and representatives in various locations add significant complexity to filing and enforcing these applications.
ARRMS Expertise in Debt Recovery
ARRMS offers a range of comprehensive and specialized services to facilitate debt recovery in India using the judgement from UAE:
a. Debtor Engagement: Conduct visits, follow-ups, negotiations, and counseling.
b. Property Identification: Locate and identify borrower-owned properties.
c. Document Procurement: Obtain property details and ownership documents from authorities.
d. Borrower Tracing: Track down untraceable borrowers.
e. Legal Strategy: Analyze borrower backgrounds and develop tailored legal approaches.
f. Court Representation: Provide authorized representatives to:
i. Appear in court.
ii. Sign legal documents.
iii. Grant authority (vakalat nama) to lawyers and manage follow-ups.
g. Legal Action: File and attend execution proceedings through a law firm.
h. Centralized Support: Offer telephonic counseling and coordinate with legal teams.
i. Securing Property: Identify and secure both movable and immovable assets.
j. Settlement Negotiation: Engage in settlement discussions with borrower(s).
k. Summons Service: Serve legal notices through court officers.
l. Property Attachment: Assist in physically attaching debtor properties, including arranging police protection.
m. Asset Sale: Manage the sale process, including issuing advertisements and conducting auctions.
n. Warrant Execution: Execute arrest warrants with court officers and police.
o. Recovery Efforts: Implement all necessary steps to recover the debt.
p. Fund Transfer Assistance: Facilitate the transfer of recovered funds to the UAE.
Conclusion
Debt recovery, especially across borders, demands a thorough understanding of legal processes as well as strategic execution. To address these challenges, ARRMS (India) Pvt Ltd offers a comprehensive debt recovery solution, effectively managing the complexities in both the UAE and India. Consequently, this ensures that judgments are properly enforced, and debts are successfully recovered.
ARRMS was listed as one of the Top 25 Debt Collection Agency in 2022 by StartUpTalky.Com. Refer Debt Recovery | List of Top 25 Debt Collection Agencies (startuptalky.com)
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