PART 32 PART 32 — Charging Orders, Stop Orders And Stop Notices
269. Scope of this Part and interpretation(1) This Part contains rules which provide for a judgment creditor to enforce a judgment by obtaining a charging order, a stop order or a stop notice over or against the judgment debtor's interest in an asset.(2) "Funds in Court" includes securities held in Court and "securities" means securities of any of the kinds specified in section 116(2)(b) of the Regulations
270. Charging orders(1) Rules 270 to 277 apply to an application by a judgment creditor for a charging order under section 115 of the Regulations.(2) A judgment creditor may apply for a single charging order in respect of more than one judgment or order against the same debtor.(3) An application for a charging order may be made without notice.(4) The application must contain the information required by the relevant practice direction and be verified by a statement of truth.
271. Interim charging order(1) An application for a charging order will initially be dealt with by the Court without a hearing.(2) The Court may make an interim charging order imposing a charge over the judgment debtor's interest in the assets to which the application relates and fixing a hearing to consider whether to make a final charging order as provided under Rule 275(2).
272. Service of interim charging order(1) Copies of the interim charging order, the application notice and any documents filed in support of it must be served in accordance with the relevant practice direction on the judgment debtor and such other creditors as the Court directs.(2) If the interim charging order relates to an interest under a trust, the documents referred to in paragraph (1) must be served on such of the trustees as the Court directs.(3) If the interest charged is in securities other than securities held in Court, then service must be —(a) in the case of stock of any body incorporated within the Abu Dhabi Global Market, that body;(b) in the case of stock of any body incorporated outside the Abu Dhabi Global Market or of any state or territory outside the United Arab Emirates, which is registered in a register kept in the Abu Dhabi Global Market, the keeper of that register;(c) in the case of units of any unit trust in respect of which a register of the unit holders is kept in the Abu Dhabi Global Market, the keeper of that register; and(d) if the interest charged is in funds in Court, the Registrar.
273. Effect of interim charging order in relation to securities(1) If a judgment debtor disposes of his interest in any securities, while they are subject to an interim charging order which has been served on him, that disposition shall not, so long as that interim order remains in force, be valid as against the judgment creditor.(2) A person served under Rule 272 (3) with an interim charging order relating to securities must not, unless the Court gives permission, permit any transfer of any of the securities or pay any dividend, interest or redemption payment relating to them.(3) If a person acts in breach of paragraph (2), he will be liable to pay to the judgment creditor an amount calculated in accordance with the relevant practice direction.
274. Effect of interim charging order in relation to funds in Court
If a judgment debtor disposes of his interest in funds in Court while they are subject to an interim charging order which has been served on him and on the Registrar in accordance with Rule 272, that disposition shall not, so long as that interim charging order remains in force, be valid as against the judgment creditor.
275. Further consideration of the application(1) If any person objects to the Court making a final charging order, he must apply to the Court in accordance with the relevant practice direction.(2) At the hearing, the Court may —(a) make a final charging order confirming that the charge imposed by the interim charging order shall continue, with or without modification;(b) discharge the interim charging order and dismiss the application;(c) decide any issues in dispute between the parties, or between any of the parties and any other person who objects to the Court making a final charging order; or(d) direct a trial of any such issues, and if necessary give directions.(3) If the Court makes a final charging order which charges securities other than securities held in Court, the order will include a stop notice unless the Court otherwise orders.
276. Enforcement of charging order by sale(1) Subject to the provisions of any ADGM enactment, the Court may, upon a claim by a person who has obtained a charging order over an interest in property (including real property), order the sale of the property to enforce the charging order.
277. Stop Orders
"Stop order" means an order of the Court of First Instance not to take, in relation to funds in Court or securities specified in the order, any of the steps listed in section 119(5) of the Regulations.
278. Application for stop order(1) The Court of First Instance may make a stop order —(a) relating to funds in Court, on the application of any person who has a mortgage or charge on the interest of any person in the funds or to whom that interest has been assigned or who is a judgment creditor of the person entitled to that interest; or(b) relating to securities other than securities held in Court, on the application of any person claiming to be beneficially entitled to an interest in the securities.
279. Stop order relating to funds in Court
A stop order relating to funds in Court shall prohibit the transfer, sale, delivery out, payment or any other dealing with the funds or any part of them or any income on the funds.
280. Stop order relating to securities(1) A stop order relating to securities other than securities held in Court may prohibit all or any of the steps set out in the relevant practice direction.(2) The order must specify the securities to which it relates, the name in which the securities stand, the steps which may not be taken; and whether the prohibition applies to the securities only or to the dividends or interest as well.
281. Stop Notices(1) "Stop notice" means a notice issued by the Court of First Instance which requires a person or body not to take, in relation to securities specified in the notice, any of the steps listed in section 119(5) of the Regulations, without first giving notice to the person who obtained the notice.(2) "Securities" referred to in paragraph (1) do not include securities held in Court.
282. Request for stop notice(1) The Court may, on the request of any person claiming to be beneficially entitled to an interest in securities, issue a stop notice.(2) A request for a stop notice must be made by filing a draft stop notice and written evidence which sets out the matters required by the relevant practice direction.(3) If the Court considers that the request complies with paragraph (2), it will issue a stop notice which the applicant must serve, together with his written evidence, on the person to whom the stop notice is addressed.
283. Effect of stop notice(1) A stop notice takes effect when it is served in accordance with Rule 282 (3) and remains in force unless it is withdrawn or discharged in accordance with the relevant practice direction.(2) While a stop notice is in force, the person on whom it is served must not register a transfer of the securities described in the notice or take any other step restrained by the notice without first giving 14 days' notice to the person who obtained the stop notice.(3) The person on whom the stop notice is served may not, by reason only of the notice, refuse to register a transfer or to take any other step, after he has given 14 days' notice under paragraph (2) and that period has expired.
284. Amendment of stop notice(1) If any securities are incorrectly described in a stop notice which has been obtained and served in accordance with Rule 282, the applicant may request an amended stop notice in accordance with those paragraphs.(2) The amended stop notice will take effect when it is served.
Amended on June 1, 2017