Abu Dhabi court rejects insolvency plea over Dh1.5 million debt

Abu Dhabi: A man’s bid to be declared insolvent over debts of nearly Dh1.5 million has been dismissed by the Abu Dhabi Civil Family Court after judges ruled he failed to provide sufficient evidence of losing his assets.

Court records show the petitioner sought insolvency proceedings, claiming he had ceased commercial activity, was unemployed, and unable to meet his financial obligations. He asked the court to declare him insolvent and supervise the liquidation of his assets.

However, the judges referred to the UAE Civil Transactions Law and the 2019 Insolvency Law, which require debtors to prove that their liabilities equal or exceed their assets. The court said the man had not met this requirement.

Under the law, insolvency applications must be supported by documents detailing losses, and courts are required to rule on such petitions within five working days if all conditions are satisfied.

The court also highlighted that judges must consider the circumstances of a debtor’s financial collapse, including whether mismanagement played a role, as well as the rights of creditors.

As the petitioner failed to meet these conditions, the court dismissed the case and ordered him to pay court fees and expenses.