This month we bring you a special focus on a continent that boasts the world’s largest free trade area, a diverse economic make-up and increasing political stability. The latest edition of Law Update focuses on Africa, a territory that continues to be an attractive business and investment destination.
Like the rest of the world, Africa is still re-building from the impact of COVID-19, however, there continues to be an optimistic view of the opportunities the continent presents. An example of the appetite for investment into Africa was captured in a report we commissioned, titled Legal Leaders in MENA. Our survey of legal leaders revealed a resounding desire to expand into new territories, with 81% naming Africa as their investment destination of choice.Read the full edition
Hiam Abdullah - Associate - Litigation
This article will provide an overview of the structure of the Centre as well as the process and procedures of litigation in cases pertaining to outstanding rent and eviction of tenants.
The scope and structure of the centre
His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai issued a decree concerning rent disputes in the Emirate of Dubai (Decree No. 26 of 2013) establishing the Rent Disputes Settlement Centre.
The Centre exclusively carries out the following competences:
However, the Centre is not empowered to hear the following rental disputes:
The structure of the Centre consists of two sectors, a judicial and administrative division. The judicial sector consists of the following departments:
The administrative sector of the Centre consists of a number of divisions mandated to provide technical and administrative support for the judicial sector.
The Reconciliation Department aims at assisting parties to settle rental disputes amicably within a maximum period of 15 days. This period may be extended at the discretion of the supervising judge. If the parties agree settlement terms, it will be documented by way of a settlement agreement signed by the parties and approved by the judge supervising the Department.
Litigation Before The Centre: Process And Procedure
First Instance Department:
The First Instance Department consists of committees each having a chairman (judge) and two members from both the legal and real estate field.
All proceedings at the Centre are conducted in Arabic. Accordingly all the court pleadings will be drafted in Arabic and official Arabic translations of all the documents upon which parties seek to rely in the litigation will be required.
Once the claim has been filed and served, there will be a series of hearings during which parties formally appear and file memoranda which set out the claim, defence and all other evidence upon which the parties rely. In practice all arguments, pleadings and documents submitted to the Centre are made by written submission.
The number of hearings and the time it will take to set the matter down for judgment will depend on matters such as the length of time taken to serve the defendants, the complexity of the case and the number of memorandums that are filed.
If the Centre considers the case sufficiently complex or technical it will appoint an expert to review the documents, meet with the parties and ultimately provide an expert report to the Centre.
Once all the pleadings have been exchanged, and the expert report has been submitted where applicable, the Centre will set the matter down for judgment.
There is a right of appeal from the First Instance Department to the Appeal Department within 15 days from the date the judgment is issued.
The appeal department of the Centre consists of a number of committees; each of which has a chairman (judge) and two members, one of them being a judge and the other with extensive experience and competence in real estate. These committees are responsible for rendering decisions in relation to appeals filed against decisions and judgments issued by the First Instance Department.
The judgments of the Appeal Department are deemed final.
Judgments issued in rental claims that are less than AED 100,000 (or if the annual rent is less than AED 100,000) will not be accepted by the appeal department save in the following circumstances:
Enforcement of Judgments:
All final judgments issued by both the First Instance and Appeal Department must be enforced before the execution department of the Centre. The enforcement procedures will commence following the lapse of 15 days from the date the tenant is notified of the execution proceedings.
The First Instance Department’s judgment will be considered final if the judgment cannot be appealed for the reasons set out above and/or if it is not appealed by the parties within the statutory time frame.
In cases where the Centre issued decisions for eviction, the eviction date will be scheduled by the Centre (i.e. for the bailiff to visit the premises and carry out the handover process) following the lapse of the notification period.
When the eviction process is concluded the landlord must file another application before the execution department of the Centre to claim rent and other charges against the tenant until the eviction date. The Centre will subsequently carry out an asset search to identify and locate monies and assets owned by the tenant before the concerned authorities.
Eviction of Tenants:
Article 25 (1) of Law No. 26 of 2007, as amended by Law No. 33 of 2008, regulating the relationship between landlord and tenants in the Emirates of Dubai (the “Landlord and Tenant Law”) provides that landlords may demand eviction of tenants prior to the expiry of a tenancy contract in the following circumstances:
And for the purpose of this Article 25(1) the landlord must notify the tenant through the Notary Public or by registered mail.
Article 25 (2) of the Law also provides grounds for eviction upon the expiry of a tenancy contract which are limited to the following cases:
And for the purpose of clause (2) of this Article, the landlord must notify the tenant with reasons for eviction at least twelve months prior to the determined date of eviction subject that such notice be sent through the Notary Public or by registered mail.
If a landlord demands recovery of the property for his own use, then the landlord cannot rent the property to others for at least two years for residential property and three years for non residential property.
We trust that this article acts as a helpful overview of the structure and function of the Centre and the applicable procedures that shape how litigation before the Centre is conducted.