• Chapter 3: Chapter 3: Charging Orders

    • 115. Charging orders

      (1) Where, under a judgment or order of the Courts, a person (the "debtor") is required to pay a sum of money to another person (the "creditor") then, for the purposes of enforcing that judgment or order, the Court of First Instance may make an order in accordance with the provisions of this Part 6 imposing on any such property of the debtor as may be specified in the order a charge for securing the payment of any money due or to become due under the judgment or order.
      (2) An order under subsection (1) is referred to in these Regulations as a "charging order".
      (3) A person may apply to the Court of First Instance for a charging order to enforce more than one judgment or order.
      (4) In deciding whether to make a charging order, the Court shall consider all the circumstances of the case and, in particular, any evidence before it as to —
      (a) the circumstances (including, where relevant and appropriate, the personal circumstances) of the debtor; and
      (b) whether any other creditor of the debtor would be likely to be unduly prejudiced by the making of the order.
      (5) Subsections (6) and (7) apply where, under a judgment or order of the Courts, a debtor is required to pay a sum of money by instalments.
      (6) The fact that there has been no default in payment of the instalments does not prevent a charging order from being made in respect of that sum.
      (7) But if there has been no default, the Court must take that into account when considering the circumstances of the case under subsection (4).

    • 116. Property which may be charged

      (1) Subject to subsection (3) below, a charge may be imposed by a charging order only on —
      (a) any interest held by the debtor beneficially —
      (i) in any asset of a kind mentioned in subsection (2); or
      (ii) under any trust; or
      (b) any interest held by a person as a trustee of a trust ("the trust"), if the interest is in such an asset or is an interest under another trust and —
      (i) the judgment or order in respect of which a charge is to be imposed was made against that person as trustee of the trust; or
      (ii) the whole beneficial interest under the trust is held by the debtor unencumbered and for his own benefit; or
      (iii) in a case where there are two or more debtors all of whom are liable to the creditor for the same debt, they together hold the beneficial interest under the trust unencumbered and for their own benefit.
      (2) The assets referred to in subsection (1) are —
      (a) real property;
      (b) securities of any of the following kinds —
      (i) government stock;
      (ii) stock of any body incorporated within the Abu Dhabi Global Market;
      (iii) stock of any body incorporated outside the Abu Dhabi Global Market or of any state or territory outside the Emirate or the United Arab Emirates, being stock registered in a register kept at any place within the Abu Dhabi Global Market;
      (iv) units of any unit trust in respect of which a register of the unit holders is kept in any place within the Abu Dhabi Global Market;
      (c) funds in Court; or
      (d) funds in any bank or investment account kept in the Abu Dhabi Global Market.
      (3) In any case where a charge is imposed by a charging order on any interest in an asset of a kind mentioned in subsections (2)(b), (c) or (d), the court making the order may provide for the charge to extend to any interest, dividend or other return payable in respect of the asset.

    • 117. Provisions supplementing sections 115 and 116

      (1) A charging order may be made either absolutely or subject to conditions as to notifying the debtor or as to the time when the charge is to become enforceable, or as to other matters.
      (2) The Real Property Regulations 2015 shall apply in relation to charging orders as they apply in relation to other orders or writs issued or made for the purpose of enforcing judgments.
      (3) Subject to the provisions of this Part 6, a charge imposed by charging order shall have the like effect and shall be enforceable in the same Courts and in the same manner as an equitable charge created by the debtor by writing under his hand.
      (4) Subsections (6) to (8) apply where —
      (a) a debtor is required to pay a sum of money in instalments under a judgment or order of the Courts (an "instalments order"); and
      (b) a charge has been imposed by a charging order in respect of that sum.
      (5) In subsections (6) to (8), references to the enforcement of a charge are to the making of an order for the enforcement of the charge.
      (6) The charge may not be enforced unless there has been default in payment of an instalment under the instalments order.
      (7) Court procedure rules may —
      (a) provide that, if there has been default in payment of an instalment, the charge may be enforced only in prescribed cases; and
      (b) limit the amounts for which, and the times at which, the charge may be enforced.
      (8) Except so far as otherwise provided by court procedure rules under subsection (7) —
      (a) the charge may be enforced, if there has been a default in payment of an instalment, for the whole of the sum of money secured by the charge and the costs then remaining unpaid, or for such part as the Court may order; but
      (b) the charge may not be enforced unless, at the time of enforcement, the whole or part of an instalment which has become due under the instalments order remains unpaid.
      (9) The Court of First Instance may at any time, on the application of the debtor or of any person interested in any property to which the order relates, make an order discharging or varying the charging order.
      (10) Where a charging order has been protected by an entry registered under the Real Property Regulations 2015, an order under subsection (9) discharging the charging order may direct that the entry be cancelled.
      (11) The Board, on the recommendation of the Chief Justice, may by rules amend section 116(2) by adding to, or removing from, the kinds of asset for the time being referred to there, any asset of a kind which, in the Chief Justice's opinion ought to be so added or removed.

    • 118. Power to set financial thresholds

      (1) The Board, on the recommendation of the Chief Justice, may by rules provide that a charge may not be imposed by a charging order for securing the payment of money of an amount below that determined in accordance with such rules.
      (2) The Board, on the recommendation of the Chief Justice, may by rules provide that a charge imposed by a charging order may not be enforced by way of order for sale to recover money of an amount below that determined in accordance with such rules.
      (3) Rules made under this section may —
      (a) make different provision for different cases;
      (b) include such transitional provision as the chairman of the Board, after consulting the Chief Justice, thinks fit.