Appeal
in Cassation No. 921 of 2019 Commercial
Court
Panel: Presided by Judge Shehab Abdul Rahman Al Hamadi - Chief Judge of the
Circuit - with the membership of judges Abdullah Bu Bakr Al Siri and Sabri
Shamseddin Mohammed.
Announcement
“by publication”. Newspapers. Investigation of litigation.
Nullification. Ruling “nullification” defective causation. Statement
of claim “nullification”. Reversal of the accepted
grounds.
-
Announcement through publication in newspapers. Exceptional way. Reason of
that?
-
Announcement by publication. The litigant shall not resort to this method unless
he uses all necessary means to investigate the place of residence of his
litigant to announce the same.
-
Litigation. Is not valid between both parties if the nullification of the
announcement of the statement of claim is proved. Result. Invalidity of the
announcement until issuance of the first instance judgment. Effect of the same.
Removal of litigation as effect of the judicial demand and shall not be
rectified by any subsequent procedure in the lawsuit. Ruling nullification
before the Court of Appeal and the latter deciding on the nullification of the
appealed judgment without addressing the settlement of the subject thereof.
Reason of that? To not be deprived of the nullification in his favour. The
grounds of the same? Clause 3 of Article 6 of the Regulation of Federal Law no.
11 of 1992 on Civil Procedure Law.
-
Example of defective causation for ruling to compel both Appellants in cassation
to pay an amount as the nullification of the announcement was proved as one of
the Appellants is a foreigner and the publication was made in Arabic newspapers
and not foreign newspapers.
Whereas
it is prescribed, in the jurisdiction of this Court, that announcement by way of
publication in newspapers is an exceptional way intended to confront certain
circumstances under which any attempt to announce by other methods becomes
useless, so the litigant party shall not take this way unless he has exhausted
all the necessary means to find the place of residence of his opponent in order
to announce him. It is also prescribed that litigation between both parties is
invalid upon proof of nullification of the announcement of the statement of
claim addressed to the Defendant. If the announcement is not valid until
issuance of the first instance judgment, the litigation will cease as an effect
of the judicial demand, and no subsequent procedure in the lawsuit will rectify
it thereafter. This requires that upon verification of the nullification before
the Court of Appeal, the litigation depends on the determination of
nullification of the appealed judgment without settling the subject of
litigation so as not to deprive the validity of the nullification in his favour
- due to the invalidity of announcement by newspaper - from considering the
lawsuit on two levels as it is one of the basic principles of the judicial
system that the Court shall not violate. Clause 3 of Article 6 of the Regulation
of Federal Law no. 11 of 1992 on Civil Procedure Law, stated in Chapter 1, Title
1 (Announcement and its Procedures), that: If it was not possible to announce to
the person to be notified according to Clause “a” of this Article,
the matter shall be submitted to the case management office, the competent judge
or the Chief Judge, as the case may be, to investigate from at least one side
the concerned entities then announce by publication in a widely spread newspaper
issued in Arabic and in another newspaper issued in a foreign language if
necessary, in case the person to be notified is a foreigner.
Thus,
whereas the contested judgment rejected the plea of nullification of the
announcement in the first statement of claim, it is proven in the documents that
the lawsuit announcements were addressed to the Appellant in cassation at the
address contained in the statement of claim. The process server moved to this
address and found that place has a sign in the name of the First Appellant in
cassation and that it is closed since long time ago. Subsequently, the Court
investigated the address of both Appellants in cassation through the Economic
Department and the Criminal Information Systems, which stated their address, and
then completed their announcement through publication. Whereas these procedures
are valid under the Law and it is proved in the documents that the Second
Appellant in cassation is a foreigner of the Indian nationality and his official
language is not Arabic, which he claimed he has no knowledge of, and he was not
notified through publication according to Clause 3 of Article 6 stated above, as
the documents do not state that the publication was made in a foreign newspaper,
as long as the litigant to be announced is a foreigner and the procedures to be
followed upon ignorance of the addressee were not followed as per the decree,
then the announcement of the statement of claim shall be nullified as it was not
valid until issuance of the first instance judgment, as it is the basis of
litigation and all the procedures are based thereon. Whereas the contested
judgment did not adhere to the same and ruled in the merits then its ruling is
not based on a litigation under the Law and all effects entailed therefrom shall
be removed for erring in the application of the Law, then it shall be reversed
with referral to the Court of First Instance, so that the litigant is not
subject to litigation according to the basic principles of the litigation that
shall not be violated.
Whereas,
in the facts - as apparent in the contested judgment and the documents - the
Plaintiff - Respondent - filed lawsuit no. 327 of 2014 Commercial Plenary Ajman,
requesting to compel the Defendants - Appellants in cassation - to jointly pay
the amount of AED 849,632.32. In explanation of the lawsuit, he stated that he
granted credit facilities to the First Defendant - First Appellant in cassation
- to guarantee and sponsor the Second Defendant - Second Appellant in cassation
- and it failed to perform, then the claim amount became due and they refused to
pay despite the notification, thus the lawsuit was filed. After deliberation,
the Court of First Instance ruled to appoint an expert in the lawsuit. After the
expert accomplished the task assigned to him, and the Plaintiff added the
Court’s request for the validity of sequestration no. 289 of 2014, Ajman
Federal First Instance Court ruled, on 20/10/2014 to compel both Defendants, in
solidarity between them, to pay to the Plaintiff an amount of AED 860,232.32 and
to reject all other requests. The Defendants appealed it in cassation under no.
760 of 2017. After its deliberation, Ajman Federal Court of Appeal ruled, on
March 27, 2018 forfeiture of the right to appeal, and the Appellants appealed it
in cassation under no. 499 of 2018. On 30/4/2019, the Federal Supreme Court
ruled to reverse the contested judgment with referral. The Court of the next
instance ruled, on 28/10/2019, to confirm the appealed judgment. The Appellants
did not agree upon this ruling and appealed it under the current appeal in
cassation. After the expert accomplished the task assigned to him, and the
Plaintiff added the Court’s request for the validity of sequestration no.
289 of 2014, Ajman Federal First Instance Court ruled, on 20/10/2014 to compel
both Defendants, in solidarity between them, to pay to the Plaintiff an amount
of AED 860,232.32 and to reject all other requests. The Defendants appealed it
in cassation under no. 760 of 2017. After its deliberation, Ajman Federal Court
of Appeal ruled, on March 27, 2018 forfeiture of the right to appeal, and the
Appellants appealed it in cassation under no. 499 of 2018. On 30/4/2019, the
Federal Supreme Court ruled to reverse the contested judgment with referral. The
Court of the next instance ruled, on 28/10/2019, to confirm the appealed
judgment.
The
Appellants did not agree upon this ruling and appealed it under the current
appeal in cassation. Whereas the appeal in cassation was presented in a Council
Chamber, the Court found that it is worthy of consideration in a hearing and it
was considered as stated in the minutes of the hearings and the hearing of today
was specified for the pronunciation of the judgment.
Whereas
the appeal was based on four grounds, whereby the Appellants objects to the
contested judgment in the third ground, for having violated the Law, as the
Second Appellant holds the Indian nationality and does not know the Arabic
language, and that by examining his announcement as published, it is found that
it was published in Al-Khaleej newspaper, issue no. ............. under a Court
decision, which violated the Regulation of the Law no. 11 on Civil Procedure
Law, then it shall be reversed.
Whereas
the objection is valid, as
it is
prescribed, in the jurisdiction of this Court, that announcement by way of
publication in newspapers is an exceptional way intended to confront certain
circumstances under which any attempt to announce by other methods becomes
useless, so the litigant party shall not take this way unless he has exhausted
all the necessary means to find the place of residence of his opponent in order
to announce him.
It
is also prescribed that the litigation will not take place between both parties
when it is proven that the announcement of the statement of claim addressed to
the Defendant is invalid. If the announcement is not valid until issuance of the
first instance judgment, the litigation will cease as an effect of the judicial
demand, and no subsequent procedure in the lawsuit will rectify it
thereafter.
This
requires that upon verification of the nullification before the Court of Appeal,
the litigation depends on the determination of nullification of the appealed
judgment without settling the subject of litigation so as not to deprive the
validity of the nullification in his favour - due to the invalidity of
announcement by newspaper - from considering the lawsuit on two levels as it is
one of the basic principles of the judicial system that the Court shall not
violate. Clause 3 of Article 6 of the Regulation of Federal Law no. 11 of
1992 on Civil Procedure Law, stated in Chapter 1, Title 1 (Announcement and its
Procedures), that: If it was not possible to announce to the person to be
notified according to Clause “a” of this Article, the matter shall
be submitted to the case management office, the competent judge or the Chief
Judge, as the case may be, to investigate from at least one side the concerned
entities then announce by publication in a widely spread newspaper issued in
Arabic and in another newspaper issued in a foreign language if necessary, in
case the person to be notified is a foreigner.
Thus,
whereas the
contested judgment rejected the plea of nullification of the announcement in the
first statement of claim, it is proven in the documents that the lawsuit
announcements were addressed to the Appellant in cassation at the address
contained in the statement of claim. The process server moved to this address
and found that place has a sign in the name of the First Appellant in cassation
and that it is closed since long time ago. Subsequently, the Court investigated
the address of both Appellants in cassation through the Economic Department and
the Criminal Information Systems, which stated their address, and then completed
their announcement through publication. Whereas these procedures are valid under
the Law and it is proved in the documents that the Second Appellant in cassation
is a foreigner of the Indian nationality and his official language is not
Arabic, which he claimed he has no knowledge of, and he was not notified through
publication according to Clause 3 of Article 6 stated above, as the documents do
not state that the publication was made in a foreign newspaper, as long as the
litigant to be announced is a foreigner and the procedures to be followed upon
ignorance of the addressee were not followed as per the decree, then the
announcement of the statement of claim shall be nullified as it was not valid
until issuance of the first instance judgment, as it is the basis of litigation
and all the procedures are based thereon. Whereas the contested judgment did not
adhere to the same and ruled in the merits then its ruling is not based on a
litigation under the Law and all effects entailed therefrom shall be removed for
erring in the application of the Law, then it shall be reversed with referral to
the Court of First Instance, so that the litigant is not subject to litigation
according to the basic principles of the litigation that shall not be
violated.