By Mohamed Ghanem
Lawyer I LLM I Lecturer I Speaker I DIAC Arbitrator
February 7, 2023
In a judicial precedent, the Dubai courts issued its ruling to open bankruptcy procedures for a company in the free zone in Sharjah and its owner, despite the fact that the Public Prosecution recommended that the Dubai courts not have jurisdiction to hear the case, given that the debtor’s headquarters is in the Emirate of Sharjah.
The court supported the defence of the company seeking bankruptcy “creditor” regarding the exceptional jurisdiction in bankruptcy cases in the event that the merchant retired from trade, as stipulated in Article 35 of the Federal Civil Procedure Law, then the lawsuit can be filed before the court of which the domicile of the defendant belongs, in contrary to the general jurisdiction in bankruptcy cases, “the domicile court The trader” and that after it was proven from the documents submitted and the defence that the commercial license of the company whose bankruptcy is required is expired, and the ruling was adopted that not to renew the license as evidence of the retirement of trade and that its owner resides in the Emirate of Dubai, and from there the jurisdiction is held to consider the request to open bankruptcy procedures to the court of the domicile of the defendant according to the aforementioned exceptional jurisdiction .