Provisional Attachment of Assets under Articles 247 to 250
Provisional attachment is an important interim measure before the onshore UAE courts. It allows a creditor to preserve a debtor’s attachable movable or immovable assets where there is a risk that the security for the debt may be lost.
Under Article 247 of the Civil Procedure Law, a creditor may apply to the court hearing the case or the competent summary judge for a provisional attachment where the creditor fears losing the security for its right. This may arise where, for example, the debtor has no stable residence in the UAE, there is serious evidence that the debtor may abscond, remove, transfer, or conceal assets, or the debt documents are at risk of being lost.
A provisional attachment may also be sought where the creditor holds an official or ordinary document proving a due, unconditional, and specified debt, or a non-enforceable judgment confirming a specified amount. Before granting the attachment, the court may request statements, evidence, affidavits, or carry out a brief investigation where it considers this necessary.
Article 248 allows a person who owns a specific movable item, or has a legal right over it, to request provisional attachment while it is in someone else’s possession. The item must be clearly identified in the application. If the creditor has no writ of execution or the amount of the debt is not fixed, Article 249 applies. In these cases, the court may make an order of provisional attachment and temporary assessment of the debt . In case the attachment relates to real estate, the application shall be supplemented by an official copy of the title deed.
Attachment must be limited to the extent of the claim, and the debtor may request that it be reduced where the value of the attached assets is disproportionate to the debt. Article 242 also protects certain assets from attachment, including necessary household items and books, tools, and equipment required for the debtor to practise a profession or craft. In relation to wages and gross fixed salary, attachment is generally limited to one quarter, including where the amount has been transferred to a bank account.
Where attachment is ordered by the magistrate of summary justice, Article 250 requires the attachment applicant to file an action establishing the right within eight days from the date of the attachment order. Failing this, the attachment is treated as invalid from the beginning. The same consequence applies where the creditor does not commence execution of a final judgment in its favour within thirty days after that judgment becomes final.