On January 17, 2020, the Indian Ministry of Law and Justice announced that the UAE would be recognized as a ‘reciprocating territory’ under section 44 of India’s Code of Civil Procedure (Law No. 5 of 1908), commonly referred to as the CPC. This declaration allows for the enforcement of civil Judgments from certain Courts in the UAE as if they were local Judgments in India. The designated ‘Superior Courts’ listed in the notification include the UAE Federal Supreme Court, various federal, first instance, and appeals courts in different emirates, such as Courts in Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah, Abu Dhabi Global Market ”ADGM” Courts, and Dubai International Financial Center “DIFC” Courts.
Before this notification, although the UAE and India had a bilateral treaty for judicial cooperation and the mutual recognition and enforcement of Judgments since 1999, the simplified legal processes outlined in the agreement were not fully implemented. Consequently, individuals seeking to enforce a UAE Court Judgment in India generally had to initiate fresh proceedings and obtain a new civil Judgment from Indian Courts. This process was time-consuming and costly.
Under the current situation, foreign Judgments from Courts in ‘reciprocating territories,’ including the UAE, can be directly enforced in India as if they were Indian Court Judgments. This means that a UAE Court Judgment can now be enforced in India without the need to obtain a new civil Judgment from Indian Courts.
However, this new process is not automatic. The party seeking enforcement must initiate execution proceedings in the competent Court in India, most likely a district Court. They must provide a certified copy of the UAE Court Judgment and a certificate from the relevant UAE ‘Superior Court,’ confirming whether any part of the Judgment has been satisfied. The Judgment creditor will have an opportunity to object to the enforcement.
Importantly, the applicable limitation period for enforcing a UAE Court Judgment in India has been extended from three years (when the UAE was not recognized as a reciprocating territory) to 12 years under the new regime, as per the Indian Limitation Act 1963.
The notification holds significance due to the growing bilateral trade between the UAE and India, this development presents an opportunity for creditors to pursue debtors in India through the UAE Courts, including those in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Markets (ADGM). It is especially relevant in family law matters, where enforcement of UAE Court Judgments regarding divorce or alimony against Indian nationals or residents can now be done without initiating fresh proceedings in Indian Courts, thus reducing the risk of conflicting family law Judgments and the associated costs and delays.
In conclusion, the recognition of the United Arab Emirates (UAE) as a ‘reciprocating territory’ by the Indian Ministry of Law and Justice marks a significant milestone in cross-border legal cooperation between the two countries. This recognition allows for the direct enforcement of UAE Court Judgments in India, eliminating the need for time-consuming and expensive fresh proceedings in Indian Courts. Overall, the recognition of UAE Court Judgments in India opens up new avenues for efficient dispute resolution, enhances legal certainty, and paves the way for stronger ties between the two nations. It presents an exciting opportunity for individuals, businesses, and families to navigate cross-border legal matters more effectively, fostering greater trust and cooperation in the realm of international law.
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Written By: Mrs. Kavitha Panicker – Managing Partner at Al Safar and Partners Law Firm.
