Federal Decree-Law Promulgating the Financial and Bankruptcy Law

Article 14 — Use of Modern Technology ¶

Chapter Two: Initiation of Proceedings

Article 35 — Announcement of the Decision ¶

Chapter Three: Appointment of the Trustee and Controller

Article 55 — Confidentiality of Debtor-Related Information and Data ¶

Part One: Preventive Settlement
Chapter One: Application for Initiation of Preventive Settlement Proceedings

Article 57 — Particulars of the Application for Initiation of Preventive Settlement Proceedings and ¶

Chapter Two: Effect of Issuance of Decision to Initiate Preventive Settlement Proceedings

Article 80 — Amendment of Preventive Settlement Proposal During Implementation ¶

Chapter Three: Termination of Preventive Settlement Proceedings Prior to Full Implementation

Article 86 — Creditors' Refund of Debts Collected ¶

Part Two
Chapter One: Application for Initiation of Proceedings

Article 88 — Particulars of Application for Initiation of Proceedings and its Attachments ¶

Chapter Two: Consequences of the Decision to Initiate Proceedings

Article 106 — Amendment of the List of Debts ¶

Chapter Three: Initiation of Proceedings

Article 111 — Content of Plan ¶

Chapter Four: Approval and Endorsement of the Plan

Article 117 — Amendment of the Plan ¶

Chapter Five: Termination of Proceedings Prior to Full Implementation

Article 119 — Judgment Establishing Termination of Proceedings ¶

Part Three: Declaration of Bankruptcy
Chapter One: General Provisions

Article 124 — Voluntary Preparation of Debt List ¶

Chapter Two: Effects of Issuance of Decision to Initiate Bankruptcy Proceedings

Article 132 — Trustee's Preparation of Balance Sheet ¶

Chapter Three: Management of the Debtor's Assets and Business

Article 159 — Deducting Interests from Deferred Debt ¶

Chapter Five: Debtor's Engagement in New Business

Article 161 — Debtor's Payment of Negotiable Instrument's Value After Cessation of Payment Date ¶

Chapter Six: Announcement of Bankruptcy Judgment and its Effects

Article 168 — Overturning the Bankruptcy judgment Before Becoming Final ¶

Chapter Seven: Liquidation and Distribution

Article 171 — Liquidation and Distribution Plan's Particulars and Attachments ¶

Chapter Eight: Voting on Liquidation and Distribution Plan

Article 174 — Minutes of Liquidation Plan Voting Meeting ¶

Chapter Nine: Effects of Liquidation and Distribution Plan Approval

Article 185 — Creditors to Take Unilateral Actions ¶

Chapter Ten: Closure and Termination of Bankruptcy Proceeding

Article 190 — Bankruptcy Proceeding Termination Decision by Bankruptcy Court ¶

Chapter Eleven: Execution and Effects of Composition

Article 210 — Creditors' Recovery of Full Debts ¶

Part Four: Common Provisions
Chapter One: Effects of Decision to Initiate the Proceedings

Article 246 — Liability of Directors, Managers and Liquidator for Company's Debts ¶

Chapter Three: Procedures for Small Debtors

Article 250 — Cases where Debtor may not be Discharged ¶

Part Five: Proceedings for Preventive Settlement, or Bankruptcy Declaration During Emergency Financi

Article 257 — Permission for Debtor to Obtain New Finance ¶

Part Six: Grievances and Appeals
Chapter One: Grievances

Article 265 — Judgment on the Appeal ¶

Part Seven
Chapter One: Crimes, Penalties and Rehabilitation

Article 284 — Prohibition from Management or Practice of Business ¶

Chapter Two: Rehabilitation of Insolvent Debtor

Article 297 — Effect of Judgment Establishing Rehabilitation of Insolvent Debtor ¶

=== BODY TEXT PREVIEWS (each item below is a heading or a truncated text preview of the corresponding article; long paragraphs are cut off at ~100 characters by the capture tool) ===

## Federal Decree-Law No. (51) of 2023 Promulgating the Financial and Bankruptcy Law
We, Mohamed Bin Zayed Al Nahyan, President of the United Arab Emirates
- Having reviewed the Constitution;
- Federal Law No. (1) of 1972 Concerning the Competences of Ministries and Powers of Ministers, as a
- Based on the Minister of Justice's proposal,
Do hereby promulgate the following decree-law:
Article (1)
The Financial Restructuring and Bankruptcy Law, attached with this Decree-Law, shall enter into forc
Article (2)
The provisions of Civil Procedure Law, as well as the provisions of Law of Evidence in Civil and Com
Article (3)
1. The Court shall, sua sponte and without fees, transfer all claims, legal proceedings, grievances
2. Clause (1) of this Article shall not apply to the legal proceedings and actions that are already
Article (4)
The Cabinet shall, based upon the Minister's proposal, issue the executive regulations and resolutio
Article (5)
1. Federal Decree-Law No. (9) of 2016 on Bankruptcy, as amended, shall hereby be repealed.
2. Any provision that goes against or conflicts with the provisions of the law attached herewith ...
Article (6)
The regulations and resolutions issued in implementation of the provisions of the above-referenced F
Article (7)
This Decree Law shall be published in the Official Gazette, and shall enter into force six (6) month
## Introductory Part
## Chapter One: General Provisions
## Article (1) Definitions
For the purpose of applying the provisions of this Law, the following words and expressions shall be
The State:
The Ministry:
The Minister:
The Regulatory Authority:
Competent Judicial Authority:
Bankruptcy Court:
Bankruptcy Department:
The Unit:
Bankruptcy Register:
Roster of Experts:
Debtor:
Financial Restructuring:
Preventive Settlement:
Bankruptcy:
Debtor's Debts:
Cessation of Payment:
Instability of the Debtor's Financial Position:
Entry:
Composition:
The Debtor's Assets:
Debtor's Business:
Bankruptcy Estate:
Trustee:
Controller:
Insider:
Announcement:
Related Party:
Discontinuance of Claims:
Ranking of Creditors:
Required Majority:
Viability of the Debtor's Business' Continuation:
Existing Business:
Precautionary Measures:
Financial Emergency:
Day:
Exchange Rate:
Balance Sheet:
## Article (2) Objectives of the Law
Upon applying or interpreting the provisions of this Law, the following objectives shall be observed
## Article (3) Scope of Application
1. The provisions hereof shall apply to: a. That companies that are subject to the provisions of ...
## Article (4) Notification of Regulatory Authorities
No application may be filed in relation to any debt owed by any of the companies and corporate bodie
## Article (5) Bankruptcy Court
Federal and local courts shall have the jurisdiction, according to the rules of jurisdiction set for
## Article (6) Experts and Auditors Providing Assistance to Bankruptcy Court
1. The Bankruptcy Court may seek the assistance of a sufficient number of experts and auditors to be
## Article (7) Bankruptcy Court's Judgments
Judgments rendered by the Bankruptcy Court according to this law shall become immediately enforceabl
## Article (8) Bankruptcy Court's Decisions
Decisions issued by the Bankruptcy Court according to this law shall become writs of execution, and
## Article (9) Bankruptcy Department
1. An organizational unit to be known as \
## Article (10) Bankruptcy Department's Functions
The Bankruptcy Department shall perform the following functions: 1. To receive and register the appl
## Article (11) Submission to Head of Bankruptcy Department
The Bankruptcy Department shall submit all applications, notices, objections, grievances and memoran
## Article (12) Financial Restructuring and Bankruptcy Unit
1. A unit, to be known as the \
## Article (13) Financial Restructuring and Bankruptcy Unit's Functions
The Financial Restructuring and Bankruptcy Unit shall perform the following functions: 1. To coordin
## Article (14) Use of Modern Technology
All the procedures set forth in this law may be carried out through modern technology, including, in
## Chapter Two: Initiation of Proceedings
## Article (15) Submission of the Application by the Debtor
1. The debtor may submit to the Bankruptcy Department an application for the initiation of preventiv
## Article (16) Submission of the Application by Creditors
1. An ordinary creditor or a group of ordinary creditors may submit an application to initiate or Ba
## Article (17) Creditor's Discontinuance of its Claim for Debt
If the creditor or any of the creditors refrains from claiming its debt due to the settlement of suc
## Article (18) Submission of the Application by the Regulatory Authority
1. The regulatory authority may submit an application to initiate proceedings or a bankruptcy applic
## Article (19) Multiple Applications
1. If multiple applications are submitted regarding the debts of the same debtor, they shall all be
## Article (20) Applications Filed on Corporate Debts
1. If the debtor is a company, it is permissible to submit an application for the initiation of proc
## Article (21) Applications filed on Debts of a Deceased, Retired or Incapacitated Debtor
1. Subject to the provisions of Article (16) of this Law, an application to initiate the proceedings
## Article (22) Data of the Application
The application shall be submitted by the debtor or the regulatory authority, indicating the require
## Article (23) Submission of Data, Information and Documents
1. If the applicant fails to submit data, information and documents in accordance with Article (22)
## Article (24) Application Submitted by the Creditor
The application submitted by the creditor shall contain a statement of the reasons and shall be acco
## Article (25) Costs and Guarantee
1. Except for the applications submitted by regulatory authorities, the applicant shall deposit with
## Article (26) Notifying the Financial and Bankruptcy Unit
The Bankruptcy Department shall notify the Unit of application for initiation of the proceedings and
## Article (27) Evaluation of the Debtor's Position
Within (10) ten days from the date of being notified of the application or within the period specifi
## Article (28) Notification of the Application
1. The Bankruptcy Department shall notify the debtor of the application, not later than (10) ten day
## Article (29) Waiver of the Application
1. Except for the cases where an application to initiate the proceedings is submitted by the debtor,
## Article (30) Subpoena and Impleader of Persons
In accordance with conditions that provide for appropriate and adequate protection for creditors, th
## Article (31) Setting the Cessation of Payment Date
1. The Bankruptcy Court shall decide on the application within (10) ten days from the expiry of the
## Article (32) Amendment of Cessation of Payment Date
The Bankruptcy Court may, sua sponte or upon motion of the debtor, any of the creditors, the Trustee
## Article (33) Inadmissibility or Dismissal of the Application
1. The Bankruptcy Court shall issue its decision not to admit the application if the documents, data
## Article (34) Precautionary Measures
1. The Bankruptcy Court may, sua sponte or upon a motion submitted thereto by the Unit, if the debto
## Article (35) Announcement of the Decision
1. The Bankruptcy Department shall, not later than (10) ten days following the date of issuance of t
## Chapter Three: Appointment of the Trustee and Controller
## Article (36) Appointment of the Trustee
If the Bankruptcy Court decides to admit the application to initiate or bankruptcy proceedings, the
## Article (37) Appointment of Multiple Trustees
1. The Bankruptcy Court may, sua sponte or upon motion of the debtor or the Unit, if the debtor is s
## Article (38) Appointment of Trustee Following Approval of Creditors List
1. In all cases in which a decision is issued to appoint a Trustee after approving the list of credi
## Article (39) Appointment of Legal Person as Trustee
If a legal person is appointed as a Trustee, it shall nominate one or more representatives to assume
## Article (40) Applications of the Trustee
The Trustee appointed in accordance with the provisions of this Law may submit to the Bankruptcy Dep
## Article (41) Persons Prohibited from Being Appointed as Trustees
The following persons may not be appointed as Trustees: 1. Any of the creditors. 2. Debtor-related p
## Article (42) Duties of the Trustee
The Trustee shall carry out his duties under the supervision of the Bankruptcy Department, and he sh
## Article (43) Powers of the Trustee
1. In cases where the Trustee is entrusted with the management of the debtor's assets and business,
## Article (44) Trustee's Powers on Legal Proceedings Relating to Debtor's Assets and Business
In the cases referred to in Article (43) of this Law, the Trustee may, with permission from the Bank
## Article (45) Trustee-Debtor Relationship
Once appointed to take over the management of the debtor's assets and business, the Trustee shall ta
## Article (46) Trustee's Handover of Amounts Received
1. The Trustee shall credit any amount he receives with regard to the proceedings to a special accou
## Article (47) Recording the Trustee's Activities
1. The Trustee shall record all actions taken in connection with the management of the debtor's asse
## Article (48) Objection to Trustee's Acts
1. In the event that the debtor is supervised by the regulatory authority, the debtor, the creditors
## Article (49) Report of the Trustee
The Trustee shall submit to the Bankruptcy Department and to the Unit, where the debtor is supervise
## Article (50) Determination of Scope of Trustee's Powers
The Trustee, the debtor, any creditor or the Unit, where the debtor is supervised by the regulatory
## Article (51) Fees of the Trustee
The Trustee shall receive his fees specified in the decision to appoint him, as well as the necessar
## Article (52) Appointment of the Controller
1. The Bankruptcy Court may, sua sponte or upon motion of the debtor, the creditors or the Unit, whe
## Article (53) Replacement or removal of Trustee or Controller
1. The Bankruptcy Court may at any time, after taking the opinion of the Unit, where the debtor is s
## Article (54) Notices
1. Notifications and notices made in accordance with the provisions of this Law shall be deemed effe
## Article (55) Confidentiality of Debtor-Related Information and Data
1. The Trustee, the controller, the creditors, the Creditors' Committee and all proceeding-related p
## Part One: Preventive Settlement
## Chapter One: Application for Initiation of Preventive Settlement Proceedings
## Article (56) Debtor's Submission of Application for Initiation of the Preventive Settlement Proceedi
1. Subject to the provisions set forth with regard to the application for the initiation of proceedi
## Article (57) Particulars of the Application for Initiation of Preventive Settlement Proceedings and
Subject to the provisions of Article )22( of this Law, the debtor shall attach the following attachm
## Chapter Two: Effect of Issuance of Decision to Initiate Preventive Settlement Proceedings
## Article (58) Management of Debtor's Business and Assets
1. After a decision to initiate the preventive settlement proceedings is made, the debtor shall cont
## Article (59) Suspension of Claims
1. The issuance of a decision to initiate preventive settlement proceedings shall result in the susp
## Article (60) End of Claim Suspension Period
The claim suspension period shall come to an end in any of the following cases: 1. The Bankruptcy Co
## Article (61) Debts, Interest and Contracts
1. The issuance of the decision to initiate preventive settlement proceedings shall not result in th
## Article (62) New Finance
1. The debtor may borrow or obtain banking facilities with or without guarantee, in accordance with
## Article (63) Formation of Creditors' Committee
1. Within (10) ten days following the date of issuance of the decision to initiate preventive settle
## Article (64) List of Debt Categories and Rankings
The debtor shall submit to the Bankruptcy Department, within (10) ten days as of the end of the peri
## Article (65) Representative of Creditors' Committee
1. The Creditors' Committee shall, within ten (10) days from the date of its notification of the dec
## Article (66) Preventive Settlement Proposal
The preventive settlement proposal shall include the following: 1. The debtor's plan to carry out it
## Article (67) Filing of Preventive Settlement Proposal
1. The debtor shall file a copy of the preventive settlement proposal with the Bankruptcy Department
## Article (68) Content of the Proposal
The settlement proposal may be based on the debtor's assignment of part of its property in considera
## Article (69) Calling on Creditors to Approve the Preventive Settlement Proposal
1. The debtor shall call on the creditors to approve the preventive settlement proposal, pursuant to
## Article (70) Voting on Preventive Settlement Proposal
1. The right to vote on the preventive settlement proposal shall be limited to ordinary creditors wh
## Article (71) Explanation of and Voting on Preventive Settlement Proposal
1. The debtor shall provide a sufficient explanation for the settlement proposal items during the me
## Article (72) Approval or Rejection of Preventive Settlement Proposal
1. The preventive settlement proposal shall be deemed approved by the creditors when it is approved
## Article (73) Meeting Held for Voting on Preventive Settlement Proposal
1. A report shall be draw up on the outcomes of the meeting held for voting on the preventive settle
## Article (74) Actions Depending on Voting Outcome
1. Not later than (10) ten days following the approval or rejection of the preventive settlement pro
## Article (75) Endorsement of Preventive Settlement Proposal
Within (10) ten days following the Bankruptcy Department's receipt of the notification on approval b
## Article (76) Rejection or Suspension of Endorsement of Preventive Settlement Proposal
1. The Bankruptcy Court shall issue a decision to disapprove or suspend the ratification of the prev
## Article (77) Grievance Against the Decision Approving the Preventive Settlement Proposal
1. Any of the creditors, who did not vote for the approval of the preventive settlement proposal, fi
## Article (78) Effects of Preventive Settlement Proposal Endorsement Decision
1. The preventive settlement proposal ratified by the Bankruptcy Court shall be effective with respe
## Article (79) Implementation of Preventive Settlement Proposal
1. The debtor shall implement the preventive settlement proposal in accordance with the terms agreed
## Article (80) Amendment of Preventive Settlement Proposal During Implementation
1. The debtor may, at any time during the implementation of the preventive settlement proposal, serv
## Chapter Three: Termination of Preventive Settlement Proceedings Prior to Full Implementation
## Article (81) Cases where Preventive Settlement Proceedings May Be Terminated
The Bankruptcy Court may, based on a motion submitted thereto by any of the creditors during the per
## Article (82) Effects of Termination on the Sureties
1. The termination of the preventive settlement proceedings in accordance with Clauses (81.1, 81.2 a
## Article (83) Termination of Preventive Settlement Proceedings upon Motion of Debtor or Regulatory Au
1. The Bankruptcy Court may, based on a motion submitted thereto during the period following the dec
## Article (84) Judgment Terminating the Preventive Settlement Proceedings
1. If the Bankruptcy Court decides that the preventive settlement proceedings be terminated, it may,
## Article (85) Debtor's Acts Following Issuance of Preventive Settlement Proposal Endorsement Decision
The actions issued by the debtor after the issuance of the decision to ratify the preventive settlem
## Article (86) Creditors' Refund of Debts Collected
Terminating preventive settlement proceedings shall not oblige creditors to refund the debts they co
## Part Two
## Chapter One: Application for Initiation of Proceedings
## Article (87) Submission of Application for Initiation of Proceedings
1. Subject to the provisions stipulated regarding the application for the initiation of proceedings
## Article (88) Particulars of Application for Initiation of Proceedings and its Attachments
Subject to the provisions of Article (22) of this Law, the application for initiation of proceedings
## Chapter Two: Consequences of the Decision to Initiate Proceedings
## Article (89) Management of Debtor's Business and Assets
1. After the issuance of the decision to initiate the proceedings, the debtor shall continue to mana
## Article (90) Preventing Debtor from Managing its Own Assets and Business
1. Within (10) ten days from the date of submitting the application, the Bankruptcy Court may, sua s
## Article (91) Trustee's Temporary Suspension of the Management of the Debtor's Business and assets
If the Bankruptcy Court has appointed a temporary Trustee to manage the debtor's business and assets
## Article (92) Suspension of Claims
The issuance of a decision to initiate proceedings result in the suspension of claims from the day f
## Article (93) Expiry of Claim Suspension Period
The claims suspension period shall end in any of the following cases: 1. The Bankruptcy Court approv
## Article (94) Provisions Applicable to Contracts, New Financing and the Creditors' Committee
The provisions stipulated in Part I of this Law regarding preventive settlement shall apply to contr
## Article (95) Duties of the Trustee
1. The Bankruptcy Department shall notify the Trustee of the decision issued to appoint him within (
## Article (96) Creation of Creditors Register
The Trustee shall create a register in which he records the data of all the creditors of the debtor
## Article (97) Requesting Data or Information Related to Debtor's Assets or Business
1. The Trustee may request any data or information in relation to the debtor's property or business
## Article (98) Creditors' Handover to Trustee of Documents related to their Debts
1. All creditors, even if their debts are not payable or guaranteed by a mortgage or lien or are not
## Article (99) Claims of Debtor's Sureties or Third Parties
The creditor who received an advance payment on account of its claim from the debtor's Sureties or a
## Article (100) Verification of Debts and Creation of Debt List
1. The Trustee shall scrutinize the debts within (30) thirty days from the expiration date of the pe
## Article (101) Grievance against Debts Included in the Debt List
The debtor and every creditor, even if its name is not included in the list of debts, may file a gri
## Article (102) Approval of the Final List of Undisputed Debts
After the expiry of the period stipulated in Article (101) of this Law, the Bankruptcy Court shall a
## Article (103) Approval of List of Creditors Whose Debts Are Temporarily Approved
1. The Bankruptcy Court may, before deciding on the grievance or on the challenge filed against the
## Article (104) Disputes on Debt Security
If a dispute arises in relation to debt guarantees, it shall be temporarily admitted as an ordinary
## Article (105) Retention of Share of Temporarily-Approved Debt
The share of temporarily approved debt shall be retained from the proceeds of the sale of the debtor
## Article (106) Amendment of the List of Debts
1. A creditor, who does not submit documents supporting its debt within the dates stipulated in Arti
## Chapter Three: Initiation of Proceedings
## Article (107) Development of Plan
1. If the Bankruptcy Court issues a decision to initiate proceedings, the debtor, under the supervis
## Article (108) Plan Particulars and Attachments
The plan shall include the following attachments: 1. The debtor's plan to conduct its activity. 2. A
## Article (109) Periodic Report on Progress of Developing the Plan
The Trustee shall notify the Bankruptcy Department and the Unit, where the debtor is supervised by t
## Article (110) Notification of Plan and Attachments
The debtor shall, within the time stipulated in Clause (1) of Article (107) of this Law, notify the
## Article (111) Content of Plan
A plan may be developed on the basis of the debtor giving up all or any of its assets in considerati
## Chapter Four: Approval and Endorsement of the Plan
## Article (112) Provisions Applicable to Plan Approval and its Consequences
Notwithstanding the provisions of Articles (113) and (114) of this Law, the provisions set forth in
## Article (113) Plan Approval Meeting
1. The debtor shall call the creditors to approve the plan pursuant to a notice containing the date
## Article (114) Acts Depending on Plan Approval Meeting Outcome
1. The Trustee shall, within a maximum period of (10) ten days from the date of the required majorit
## Article (115) Supervision of Plan Implementation
The Trustee shall supervise the implementation of the plan throughout the plan's validity term and u
## Article (116) Trustee's Obligations When Supervising the Implementation of Plan
When supervising the implementation of the plan, the Trustee shall take the following measures: 1. M
## Article (117) Amendment of the Plan
1. The debtor may, at any time during the implementation of the plan, after notifying the Trustee an
## Chapter Five: Termination of Proceedings Prior to Full Implementation
## Article (118) Cases of Termination of Proceedings
1. The Bankruptcy Court may, based on a motion to be submitted thereto during the period following t
## Article (119) Judgment Establishing Termination of Proceedings
1. If the Bankruptcy Court decides to be submitted thereto by the debtor, the Trustee, the regulator
## Part Three: Declaration of Bankruptcy
## Chapter One: General Provisions
## Article (120) Initiation of Bankruptcy Proceedings
Subject to the provisions regulating the application for initiation of the proceedings in the Prelim
## Article (121) Issuance of a Decision to Initiate Bankruptcy Proceedings
The Bankruptcy Department shall refer the file of the application for the initiation of proceedings
## Article (122) List of Debts
1. Where a list of debts has not previously been prepared in accordance with the provisions stipulat
## Article (123) Claims Dismissed
Any claims previously dismissed by the Bankruptcy Court shall not be admitted, once the dismissal de
## Article (124) Voluntary Preparation of Debt List
The Trustee is not obligated to conduct or complete a debt audit or prepare a list thereof if it bec
## Chapter Two: Effects of Issuance of Decision to Initiate Bankruptcy Proceedings
## Article (125) Affixation of Seals
1. The Bankruptcy Court assigns an employee of the Bankruptcy Department to, within (10) ten days fo
## Article (126) Cases in Which the Seals May Be Affixed
1. The seals may not be affixed to the clothing, movables and necessary items of the debtor and its
## Article (127) Removal of Seals for Inventory Counting of Debtor's Assets
The Bankruptcy Court shall order, upon the Trustee's request, the removal of the seals and inventory
## Article (128) Inventory Counting of Debtor's Assets
The inventory shall be conducted in the presence of the head of the Bankruptcy Department or its del
## Article (129) Attendance of the Public Prosecution During Inventory Counting
The Public Prosecution has the right to attend the inventory, and it may, at all times, request to b
## Article (130) Death of Debtor During the Assets Inventory Counting
1. If the decision to initiate the proceedings was issued after the death of the debtor and an inven
## Article (131) Trustee's Receipt of Debtor's Assets, Books and Paperwork
1. After the inventory, the Trustee shall take over the debtor's assets, books and papers, and he sh
## Article (132) Trustee's Preparation of Balance Sheet
If the debtor has failed to submit the balance sheet, the Trustee shall prepare it immediately and f
## Chapter Three: Management of the Debtor's Assets and Business
## Article (133) Preventing the Debtor from Disposing of its Own Assets
1. As soon as a decision is issued to initiate Bankruptcy Proceedings, the debtor shall be prohibite
## Article (134) Disposition That Cannot Be Invoked vis-à-vis Creditors
If the disposition is not valid and cannot be invoked unless upon notation, registration or other pr
## Article (135) Scope of Prevention of Debtor's Dispositions
1. The prevention of the debtor from disposing of its assets include all the assets owned by it on t
## Article (136) Permission to Debtor to Continue to Practice its Business
1. The Bankruptcy Court may, upon motion of the Trustee or the debtor, authorize the debtor to conti
## Article (137) Disposing of Debtor's Assets During Preliminary Proceedings Period
1. The debtor's assets may not be sold during the period of preliminary proceedings extending from t
## Article (138) Repayment of Debts to Secured Creditors
1. The Bankruptcy Court may, based on the Trustee's proposal, order, when necessary, that the first
## Article (139) Lien Created in favor of Government
The lien created in favor of the government shall not include taxes of all types except the tax due
## Chapter Four: Contracts
## Article (140) Lease agreement
If the debtor is a lessee of the property in which it conducts business, the lease agreement shall c
## Article (141) Termination of Lease agreement
Notwithstanding the provisions of Article (140) of this Law, the Trustee may, within sixty (60) days
## Article (142) Lessor's Lien
1. In the event of termination of a lease agreement in accordance with the provisions of this Law, t
## Article (143) Continuation of Lease
1. The Trustee decides to continue the lease, and he shall pay the overdue rent, without prejudice t
## Article (144) Employment Contracts
1. If a decision is issued to initiate bankruptcy proceedings for the employer, the contracts of the
## Article (145) Contracts with Suppliers of Goods and Service Providers
If it is decided to continue the debtor's business, the Trustee shall pay the necessary amounts to t
## Article (146) Wages and Salaries Due Prior to Issuance of Decision to Initiate the Proceedings
1. The Trustee shall, not later than the ten (10) days following the issuance of a decision to initi
## Article (147) Assignment of Existing Contracts
1. If the Trustee is of the opinion that the assignment of an existing contract largely would serve
## Article (148) Debtor's Depositions that are Unenforceable vis-à-vis Creditors
1. The following actions may not be invoked vis-à-vis the creditors, if they are carried out by the
## Article (149) Unenforceable Registration of Mortgage or Lien over Debtor's Assets
1. A court may order that the registration of the mortgage or lien over the assets of the debtor in
## Article (150) Dismissal and Inadmissibility of Unenforceability Action
1. The Bankruptcy Court may order to dismiss the actions referred to in Articles (148) and (149) of
## Article (151) Action for Unenforceability of Debtor's Acts Detrimental to Creditors
The Trustee may request that the debtor's acts occurring before the issuance of the decision to init
## Article (152) Effect of Judgment Invalidating the Debtor's Acts vis-à-vis Creditors
1. If the debtor's acts are ordered invalidated vis-à-vis the creditors, the party, with which the d
## Article (153) Enabling the Debtor to Pay Salaries and Periodic Installments
If the debtor has an obligation to pay a periodic salary for life or pay installments, and the same
## Article (154) Involvement of Creditor Whose Debt Is Contingent upon Resolutory Condition
The creditor, whose debt is contingent upon a resolutory condition, shall only be involved in the pr
## Article (155) Determination of Living Expenses for the Debtor
The Bankruptcy Court may, upon motion of the debtor or its dependents and after hearing the Trustee'
## Article (156) New and Existing Actions Against the Debtor
1. After the issuance of the decision to initiate bankruptcy proceedings, no case may be filed again
## Article (157) POA Issued to or by the Debtor and the Corporate Management
1. The power of attorney shall be terminated upon the issuance of a decision to initiate bankruptcy
## Article (158) Extinguishment of Due Dates of Debts
1. The issuance of a decision to initiate bankruptcy proceedings shall result in the extinguishment
## Article (159) Deducting Interests from Deferred Debt
The Bankruptcy Court may deduct from the deferred debt, for which no interest is stipulated, an amou
## Chapter Five: Debtor's Engagement in New Business
## Article (160) Conditions for Debtor's Engagement in New Business
Notwithstanding Article (157.2) of this Law, the debtor may, with the permission of the Bankruptcy C
## Article (161) Debtor's Payment of Negotiable Instrument's Value After Cessation of Payment Date
1. If a debtor pays the value of a negotiable instrument after the cessation of payment date and bef
## Chapter Six: Announcement of Bankruptcy Judgment and its Effects
## Article (162) Announcement of Bankruptcy Judgment
1. Bankruptcy shall only be established under a judgment declaring bankruptcy. 2. The Bankruptcy Dep
## Article (163) Effects of Bankruptcy Judgment
Other than the provisions contained in this Chapter, the effects resulting from the issuance of the
## Article (164) Deprivation from Exercising Political Rights
A person, against whom a final judgment has been issued for committing any of the crimes of fraudule
## Article (165) Bankrupt's Absence from or Relocation of its Domicile
The insolvent debtor may not be absent from its domicile without notifying the Trustee in writing of
## Article (166) Communications on Bankrupt's Business
It is required to include in all correspondence in relation to the bankrupt's business during bankru
## Article (167) Placing the Insolvent Debtor under Surveillance
The Bankruptcy Court may, sua sponte or upon the motion of the Public Prosecution or the Trustee, de
## Article (168) Overturning the Bankruptcy judgment Before Becoming Final
1. If the debtor, before the bankruptcy declaration judgment becomes final, becomes able to repay al
## Chapter Seven: Liquidation and Distribution
## Article (169) Meeting for Providing Liquidation and Distribution Proposals
1. The Trustee shall call the debtor and the creditors to a meeting to provide their proposals regar
## Article (170) Preparation of Liquidation and Distribution Plan
The Trustee shall develop a plan to liquidate and distribute the debtor's assets to the creditors, p
## Article (171) Liquidation and Distribution Plan's Particulars and Attachments
The liquidation and distribution plan shall include the following attachments: 1. A statement of all
## Chapter Eight: Voting on Liquidation and Distribution Plan
## Article (172) Liquidation and Distribution Plan Voting Meeting
1. The Trustee shall call the creditors to approve the liquidation and distribution plan pursuant to
## Article (173) Involvement in Voting on Liquidation Plan
1. Only creditors whose debts are approved, even temporarily, may engage in voting on the liquidatio
## Article (174) Minutes of Liquidation Plan Voting Meeting
1. A minutes shall be drawn up of the results of the voting meeting on the liquidation and distribut
## Chapter Nine: Effects of Liquidation and Distribution Plan Approval
## Article (175)
1. The Trustee shall, within ten (10) days from the date of the creditors' approval or rejection of
## Article (176) Auction Sale of Debtor's Assets
1. The Bankruptcy Court may approve the liquidation and distribution plan even if it proposes the sa
## Article (177) Bid Submitted by Debtor or Related Party for Purchase of Debtor's Assets
The debtor or any related party may not submit a bid to purchase any of the debtor's assets offered
## Article (178) Periodic Progress Report on Liquidation and Distribution Plan
The Trustee shall submit to the Bankruptcy Court a monthly statement on the status of liquidation, t
## Article (179) Order of Debts
1. The creditors, whose rights are secured by movable or immovable property, shall take precedence o
## Article (180) Implementation of Liquidation and Distribution Plan
1. The Trustee may only pay the creditor's distribution share if the creditor submits the debt deed
## Article (181) Liquidation or Distribution Plan Progress Report
1. If six (6) months have passed without the liquidation process being completed, or without any rem
## Article (182) Final Account of Bankruptcy Work
1. The Trustee shall, within ten (10) days following the completion date of the liquidation work, no
## Article (183) Completion of Bankruptcy
1. The Trustee shall serve upon both the Bankruptcy Department and the creditors a copy of the minut
## Article (184) Handover of Surplus Amounts
The Trustee shall hand over to the debtor any surplus amounts resulting from the liquidation after a
## Article (185) Creditors to Take Unilateral Actions
1. Each creditor shall have the right, after the bankruptcy proceeding is completed, to take unilate
## Chapter Ten: Closure and Termination of Bankruptcy Proceeding
## Article (186) Closure of Bankruptcy Proceeding due to Lack of Assets
1. If the bankruptcy proceeding is suspended due to lack of debtor's assets before the composition i
## Article (187) Motion to Revoke Bankruptcy Proceeding Closure Decision
The insolvent debtor and every stakeholder may file a motion with the Bankruptcy Court to revoke the
## Article (188) Service of Bankruptcy Proceeding Closure Decision
The Bankruptcy Department shall serve the bankruptcy proceeding closure decision pursuant to Article
## Article (189) Termination of Bankruptcy Proceeding due to Extinguishment of Creditors' Interest
The bankruptcy court may decide, after the final list of creditors is announced as described herein,
## Article (190) Bankruptcy Proceeding Termination Decision by Bankruptcy Court
1. The bankruptcy court may only issue a decision establishing termination of bankruptcy proceeding
## Chapter Eleven: Execution and Effects of Composition
## Article (191) Composition
1. Composition may be established in respect of a debt after a final judgment declaring the debtor b
## Article (192) Filing an Application for Composition
The application for composition shall be submitted to the Bankruptcy Department by the debtor or the
## Article (193) Composition Application Filed by Trustee or Debtor
1. If the composition application is submitted by the trustee, the latter shall attach thereto a com
## Article (194) Notification of Submission of Composition Application
The Bankruptcy Department shall, within ten (10) days from the date of submitting the composition ap
## Article (195) Meeting for Discussing the Terms of Composition
1. The trustee shall, within ten (10) days from the date of his notification, call the creditors to
## Article (196) Action Based on Outcome of Composition Terms Discussion Meeting
1. The trustee shall notify the Bankruptcy Department of the creditors' approval or disapproval of t
## Article (197) Periodic Report on Implementation of Composition Terms
The trustee shall supervise the implementation of the terms of the composition, submit a monthly rep
## Article (198) Completion of Implementation of Composition Terms
1. In the event that the conditions for composition are fully implemented, the trustee shall submit
## Article (199) Submitting the Final Account on Bankruptcy Proceeding Ended in Composition
1. The trustee shall submit to the Bankruptcy Department a final account on the bankruptcy proceedin
## Article (200) Effects of Decision Terminating the Bankruptcy Proceeding due to Composition
All effects of bankruptcy shall cease to exist upon the issuance of a decision to terminate the bank
## Article (201) Rescission and Invalidation of Composition
1. Any stakeholder may request invalidation of the composition if the insolvent debtor fails to abid
## Article (202) Submission of Application to Invalidate or Rescind Composition by Creditor
1. An application to invalidate or rescind the composition shall be submitted to the Bankruptcy Depa
## Article (203) Admission of Application for the Invalidation or Rescission of the Composition
1. If the application for invalidation or rescission of the composition and its attachments reveal i
## Article (204) Service of Decision Granting the Application for Invalidation or Rescission of Composi
1. The decision to admit and refer the application for the invalidation or rescission of the composi
## Article (205) Revoking the Decision Granting the Application for Invalidation of Composition
The decision referred to in Article (204) of this Law shall be deemed annulled by force of law, with
## Article (206) Taking the Precautionary Measures Upon Investigation with the Insolvent Debtor
Subject to the provisions of Articles (202) and (203) of this Law, when the investigation is conduct
## Article (207) Judgment Invalidating the Composition
1. The Bankruptcy Court shall adjudicate the application submitted regarding the invalidity or resci
## Article (208) Verification of New Debts
The trustee shall call the new creditors to submit their debt documents in accordance with debt veri
## Article (209) Discharge of Bona Fide Surety
Invalidating the composition shall results in the discharge of the bona fide surety, who guarantees
## Article (210) Creditors' Recovery of Full Debts
1. After the composition is held invalid or rescinded, the creditors shall recover their full debts,
## Part Four: Common Provisions
## Chapter One: Effects of Decision to Initiate the Proceedings
## Article (211)
The provisions stipulated in this Part shall apply to the proceedings in relation to the preventive
## Article (212) Recovery of Assets
1. The owner of the assets in the possession of the debtor may, after obtaining permission from the
## Article (213) Enforcement against the Secured Assets
Creditors with secured debts may, after obtaining the permission of the Bankruptcy Court, initiate t
## Article (214) Application Submitted by the Secured Creditors
1. The trustee, the debtor and the Unit, where the debtor is supervised by the regulatory authority,
## Article (215) Deciding on the Application for Sale Permission
1. The Bankruptcy Court shall issue its decision not later than (10) ten days from the date of submi
## Article (216) Refusal to Permit the Sale
The Bankruptcy Court may refuse to grant sale permission, whether the debt is subject to preventive
## Article (217) Providing Alternative Security for Secured Debts
The trustee or debtor may offer to the secured creditors an alternative guarantee, provided that the
## Article (218) Repayment of Secured debt
The trustee or the debtor may, as the case may be, after obtaining permission from the Bankruptcy Co
## Article (219) Co-Principal Debtors
1. If there is a group of debtors who are liable for a single debt, and a decision is issued to init
## Article (220) Collecting the Debt from A Co-Principal Debtor
1. If a creditor collects part of the debt from any of the co-principal debtors, and then a decision
## Article (221) Involvement of Creditor in the Proceedings
1. If a decision is issued to imitate the proceedings for all co-principal debtors at once, the cred
## Article (222) Estate
1. If an estate is transferred to the debtor, the latter shall notify the trustee or the creditors,
## Article (223) Preventing the Debtor from Repaying Debts After Initiation of Proceedings
1. After the issuance of the decision to initiate the proceedings, the debtor may not repay its debt
## Article (224) Set-off
1. It is not permissible to set off debts payable after the decision to initiate the proceedings, un
## Article (225) Debt Owed to Creditor After Set-Off
The remainder of the debt owed to the creditor, after the set-off is carried out, shall be included
## Article (226) Conventional Subrogation of Creditor
The person, who has subrogated the creditor based on an agreement, may not demand a setoff between t
## Article (227) Distribution of Profits and Disposition of Shares
1. After the issuance of the decision to initiate the proceedings, the debtor or the trustee may not
## Article (228) Recovery
1. It is permissible that the goods, ownership interests, real estate and any other assets, which ar
## Article (229) Recovery of the Price
The owner may recover the price of the goods, ownership interests or real estate which the debtor so
## Article (230) Handover of Debtor's Rights to Trustee
In the cases referred to in Articles (228) and (229) of this Law, the recovering party shall hand ov
## Article (231) Recovery of the Goods, Ownership Interests or Real Estate from Debtor's Assets
1. If the sale contract is terminated by virtue of a judgment or a condition in the contract before
## Article (232) Withholding Assets or Recovering Possession of Transferred Assets
1. If a decision is issued to initiate bankruptcy proceedings for the purchaser before paying the pr
## Article (233) Cases of Inadmissibility of Rescission and Recovery
If a decision is issued to initiate bankruptcy proceedings regarding the purchaser's debt before pay
## Article (234) Recovery of Negotiable Instruments and Securities
1. Negotiable instruments and other instruments of value handed over to the debtor may be recovered
## Article (235) Recovery of Banknotes
Banknotes deposited with the debtor as a bailment may not be recovered unless the recovering party p
## Article (236) Recovery of Items
1. Any person shall have the right to recover from the debtor's assets any items proven to be owned
## Article (237) Recovery from the Spouse's Assets
It is not permissible for either spouse to recover from the other spouse's assets the gifts and dona
## Article (238) Spouse's Recovery of its own Assets
1. Each of the spouses may recover from the other spouse's assets its movable and immovable assets i
## Chapter Two: Companies
## Article (239) Corporate Debts
Unless there is a special provision in this Chapter, the provisions of this Law shall apply to preve
## Article (240) Approval of Partners' Majority to Submit Application for Initiation of Proceedings
1. The company manager, the liquidator or third parties may not submit an application for initiation
## Article (241) Suspension of Liquidating or Placing the Company under Receivership
If the debtor is a company and it is decided to initiate proceedings regarding its debts, adjudicati
## Article (242) Trustee's Representation of the Company
The trustee shall represent and act on behalf of the company that has been declared bankrupt in ever
## Article (243) Collecting the Company's Debts from Partners and Shareholders
1. With the exception of companies subject to preventive settlement proceedings, if any partners or
## Article (244) Application to Initiate Proceedings Applies to Active Partners
1. The application for initiation of the proceedings submitted regarding the company's debt shall be
## Article (245) Application for Initiation of Proceedings Applies to any User of the Company's Name an
The Bankruptcy Court may consider the application for the initiation of proceedings submitted regard
## Article (246) Liability of Directors, Managers and Liquidator for Company's Debts
1. If the company is declared bankrupt, the Bankruptcy Court may, upon the request of the trustee, t
## Chapter Three: Procedures for Small Debtors
## Article (247)
If, after an inventory of the debtor's assets, it becomes clear that their value does not exceed the
## Article (248) Discharge of Debtor
1. Notwithstanding the provisions of Article (185) of this Law, if bankruptcy proceeding ends for th
## Article (249) Effects of Discharge of Debtor
1. The debtor's discharge of debts in accordance with Article (248) of this Law may not result in th
## Article (250) Cases where Debtor may not be Discharged
The debtor may not be discharged from the remainder of the debt in accordance with Article (248) of
## Part Five: Proceedings for Preventive Settlement, or Bankruptcy Declaration During Emergency Financi
## Article (251) Provisions Applicable to Preventive Settlement, or Bankruptcy Proceedings During Emerg
As an exception to the provisions of this Law, the provisions of this Chapter and the decisions issu
## Article (252) Granting the Application for Initiation of Proceedings During Emergency Financial Cris
If the debtor submits an application for initiation of the proceedings for the preventive settlement
## Article (253) Giving the Debtor a Time Limit to Negotiate with Creditors
1. If the Bankruptcy Court admits the debtor's application stated in Article (252) of this Law, the
## Article (254) Postponing Consideration of Creditors' Application for Initiation of Proceedings
1. The Bankruptcy Court shall not take any precautionary measures on any of the debtor's assets nece
## Article (255) Amending the Deadlines and Time Limit Set out in the Law
If the application for the initiation of proceedings was submitted by the debtor or creditor and was
## Article (256) Actions of Directors and Managers During Emergency Financial Crisis
1. If the debtor is a legal person and ceases to repay the debts owed thereby due to the emergency f
## Article (257) Permission for Debtor to Obtain New Finance
If the debtor's application for the initiation of preventive settlement and proceedings is admitted
## Part Six: Grievances and Appeals
## Chapter One: Grievances
## Article (258) Grievances against Debtor's or Trustee's Acts
Any interested party may file a grievance before the Bankruptcy Court when the debtor or trustee com
## Article (259) Grievance against Bankruptcy Department's Acts
Any interested party may file a grievance before the Bankruptcy Court if the Bankruptcy Department f
## Article (260) Filing of Grievance
The grievance shall be submitted in accordance with this Part, not later than (10) ten days from the
## Article (261) Notification of and Responding to Grievance
1. The grievance shall be submitted to the Bankruptcy Department which shall notify the trustee, the
## Article (262) Effects of Filing of Grievance
1. The grievance shall not entail the suspension of the proceedings unless the Bankruptcy Court deci
## Chapter Two: Appeal
## Article (263) Appealing before the Court of Appeal
1. Any interested party may file an appeal against the Bankruptcy Court's decision before the Court
## Article (264) Appeal Filing Procedures
1. The challenge shall be submitted to the Bankruptcy Department, which shall register the same with
## Article (265) Judgment on the Appeal
1. The Bankruptcy Department shall refer the challenge file and the memorandums it has received to t
## Part Seven
## Chapter One: Crimes, Penalties and Rehabilitation
## Article (266) Application of the Most Severe Penalty
The penalties stipulated in this Part shall not prejudice to any more severe penalty stipulated in a
## Article (267) Considering the Trustee and Controller as Public Employees
The trustee and controller shall be considered a public employee with regard to actions for which th
## Article (268) Concealment of Books and Detrimental Acts Committed by the Debtor
Any debtor, whose bankruptcy has been declared based on a final judgment, and who, after having ceas
## Article (269) Concealment of Books and Embezzlement by Debtor's Managers
The chairman and members of the company's board of directors and its managers, auditors and officers
## Article (270) Bankruptcy by Default
Any debtor, who has been declared insolvent debtor by a final judgment and is proven to have committ
## Article (271) Fraudulent Behavior by Directors, Managers and Liquidators
In the event that a final judgment is issued declaring the bankruptcy of a company, the members of i
## Article (272) Effect of Criminal Action for Bankruptcy by Fraud or Default
If the criminal actions are filed for bankruptcy fraud or bankruptcy by default, or where a judgment
## Article (273) Embezzlement by the Trustee
1. A penalty of imprisonment and / or a fine of not more than (AED 1,000,000) a million UAE dirhams
## Article (274) Embezzlement by Third Parties
1. Whoever steals, embezzles or conceals the debtor's assets while being aware that a decision has b
## Article (275) Fraudulent Behavior of Creditors
1. A penalty of imprisonment and / or a fine of not more than (AED 300,000) three hundred thousand U
## Article (276) Submission of Fictitious Debts
Whoever fraudulently submits fictitious debts in their name or in the name of third parties shall be
## Article (277) Debtor's Fraudulent Acts
Any debtor who commits any of the following acts shall be punished with imprisonment and / or a fine
## Article (278) Unlawful Participation of Creditor in the Proceedings
Any creditor, who commits any of the following acts shall be punished with imprisonment for a period
## Article (279) Non-Creditor's Unlawful Participation in the Proceedings
The penalty of imprisonment for a period not exceeding one year and / or a fine of not more than (AE
## Article (280) Willful Refusal to Execute the Decisions Issued by Bankruptcy Court
Whoever abstains from executing a decision issued by the Bankruptcy Court in accordance with this La
## Article (281) Stay of the Criminal Proceedings
If the Bankruptcy Court decides to initiate preventive settlement or proceedings in accordance with
## Article (282) Effects of Stay of the Criminal Action
1. The effect of suspension of the criminal proceedings referred to in Article (281) of this Law sha
## Article (283) Service of Criminal Judgments
The Bankruptcy Department shall, within (10) ten days from the date of issuance of the criminal judg
## Article (284) Prohibition from Management or Practice of Business
When a court renders conviction judgment on the crimes stipulated in Articles (278, 279, and 280) of
## Chapter Two: Rehabilitation of Insolvent Debtor
## Article (285)
Unless otherwise stipulated in this Chapter, the debtor declared bankrupt shall recover the rights w
## Article (286) Rehabilitation for Payment of All Debts
1. A judgment shall be issued to establish rehabilitation of the insolvent debtor, even if the perio
## Article (287) Rehabilitation of Convicted Debtor
1. Rehabilitate may only be granted to an insolvent debtor who has been convicted of any of the crim
## Article (288) Rehabilitation of Insolvent Debtor after Death
The insolvent debtor shall be rehabilitated after their death upon motion of any of the heirs, and t
## Article (289) Creditor's Refusal to Collect Debt
If a creditor willfully refuses to collect their debt or is absent, or where it is not possible to i
## Article (290) Submission of Application for Rehabilitation
1. The application for establishing rehabilitation, accompanied by supporting documents, shall be su
## Article (291) Public Prosecution's Report on Rehabilitation Application
The Public Prosecution shall, within (10) ten days from the date of its receipt of a copy of the reh
## Article (292) Objection to Rehabilitation Application by Creditors
Any creditor, who has not collected their right, may submit an objection to the rehabilitation appli
## Article (293) Rehabilitation Application Hearing
1. The Bankruptcy Department shall, within ten (10) days of receiving the Public Prosecution's respo
## Article (294) Deciding on Rehabilitation Application
The Bankruptcy Court shall decide on the rehabilitation application under a final judgment. If the B
## Article (295) Suspension of Decision on the Rehabilitation Application
1. If, before the rehabilitation application is decided on, investigations are conducted with the in
## Article (296) Judgment Against the Debtor on any Bankruptcy Crime After Judgment Establishing Rehabi
If a judgment of conviction is rendered against the insolvent debtor on the grounds of any of the ba
## Article (297) Effect of Judgment Establishing Rehabilitation of Insolvent Debtor
The judgment establishing rehabilitation shall entitle to the insolvent debtor to recover their poli
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