Strict legal principles in bankruptcy

#Counselor-Alaa-Nasr
His Excellency Abdullah Sultan Bin Awad Al Nuaimi, Minister of Justice and Chairman of the Federal Judicial Council, issued a resolution on regulating the Bankruptcy Court. This move aims to develop the judicial structure supporting the national economy and enhance the effectiveness of the justice system in handling financial distress and bankruptcy cases.

The resolution stipulates that the Bankruptcy Court will be based at the Abu Dhabi Federal Court of First Instance and will be responsible for adjudicating all applications and disputes arising from the implementation of the Federal Decree-Law on financial reorganization and bankruptcy. The resolution also allows the Federal Judicial Council, when necessary, to establish one or more branches of the court in any of the emirates, which would be affiliated with the main court and handle the same applications and disputes.

The court will be composed of a president with a rank of no less than an appeals judge and a number of specialized judges appointed by a resolution from the Federal Judicial Council. The resolution also included the establishment of a bankruptcy administration within the court, headed by a judge with a rank of no less than an appeals judge. This administration will be responsible for a set of tasks, most notably receiving applications, objections, and grievances, registering applications, and directing notifications to relevant parties in accordance with the provisions of the Decree-Law. Additionally, it will verify that applications for preventive settlement, restructuring, and publication meet the required data and documents.

The resolution specified the administrative units affiliated with the court and their jurisdictions, ensuring the integration of roles and the effectiveness of performance. The resolution also included special provisions for bankruptcy experts and consultants. It allows the court to seek assistance from those with expertise and specialization in this field to perform several tasks, including managing the debtor's assets and business, implementing precautionary measures, expediting procedures, meeting with creditors, and hearing from the debtor or their representative on matters related to their debts, assets, or business.

This resolution is a qualitative step towards establishing a legal environment that supports financial stability. It contributes to expediting procedures and achieving a balance between the requirements of justice and ensuring the continuity of economic activity in line with the highest standards of efficiency and transparency.
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