Dubai court declares man insolvent over debts worth Dhs183m

Mohammed Yaseen, Staff Reporter

The Dubai Court declared the insolvency of a debtor who defaulted on his debts amounting to Dhs183 million and ordered the preservation of all his property in all types and forms, in preparation for distribution it to the creditors.

According to the case documents, the debtor filed a request to open bankruptcy proceedings in March 2024, justifying that by his inability to pay his debts for a period of 30 working days due to his tough financial situation.

After the court looked into the request, it appointed a financial expert to evaluate his condition, and then, after receiving the report, the court sought the opinion of the Public Prosecution, which recommended the opening of bankruptcy proceedings.

In October 2024, the court accepted the request and started the bankruptcy proceedings of the debtor.

The details of the case revealed that the list of creditors included three from institutions and banks within the country, with a total of Dhs183,279,132.

During the court sessions, the creditors' agents demanded the rejection of the lawsuit, saying that the debtor failed to provide the necessary documents required to accept the bankruptcy request. Their lawyers also argued that the lawsuit was not valid.

Dr Alaa Nasr, the legal representative of the debtor, stated that the court declared his bankruptcy and ordered the commencement of the sale, liquidation, and distribution procedures to the creditors.

He added that the court also banned his client from disposing any of his assets, and prevented him from doing any financial transactions, obliged him to hand over all his money and documents to the bankruptcy trustee within five days of the date of the judgment, and imposed a precautionary attachment on all his bank accounts in local banks and their branches, in addition to real estate, stocks, bonds, and vehicles registered in his name.