By James Mathew
Prior to the agreement, there was a long procedure to execute a UAE court verdict in India
India has declared the UAE as a reciprocating territory for the purpose of enforcing foreign civil decrees in India, a move which is widely seen to act as a major deterrent for those fleeing to India after committing major financial fraud, including bank loan default in UAE.
A government notification, issued on Saturday, said foreign civil decrees passed by courts in the United Arab Emirates can now be executed in India in line with Section 44A of the Code of Civil Procedure (CPC).
Legal and corporate experts said there has been a long-standing demand for India to include UAE as a reciprocating territory for enforcing foreign civil decrees to deter citizens fleeing to India after committing financial fraud or civil offences in UAE.
“This is a major move to bring to books Indian citizens who flee back to their country from the legal system there, after committing major financial frauds in that country,” M R Rajaram, a leading corporate sector advisor, told Arabian Business.
“Other foreign nationals generally flee to western countries or other Muslim countries after committing such economic frauds, and therefore this move by India will be more of a show of bilateral respect of each other’s legal system,” Rajaram added.
Since the UAE was not in the list of reciprocating territory, there was a long procedure to execute a court verdict in India.
According to legal experts, the move by India will also pave the way for implementation of civil verdicts such as divorce cases, ordered by designated courts in the UAE, through Indian courts.
The UAE courts that have been identified by India that are part of the reciprocal agreement include the Federal Supreme Court, Dubai Courts, Abu Dhabi Judicial Department, Courts of Abu Dhabi Global Markets and Courts of Dubai International Financial Centre.