Petition
No. 11 of 2021 - Commercial
Court
Panel: Chaired by Mr. Judge Shihab Abdul Rahman Al-Hammadi, Chief Judge of the
Circuit, accompanied by Messrs. Judges Al-Bashir bin Al-Hadi Zaytoun and
Abdullah Boubaker Al-Siri serving as counsellors.
(1)
Notice serving “Methods of notification: serving the notice at the elected
domicile.”
Effecting
notification directly to the individual either at their place of residence,
domicile, or through their designated agent, is deemed valid, irrespective of
the recipient's refusal to receive the notice.
(2,
3) Petition for review, “cases: fraud.” Notice serving
“Methods of notification: serving the notice at the elected
domicile.”
(2)
In the context of seeking a review, fraud, as a basis, occurs when the opposing
party deceives the court and is subject to specific conditions.
(3)
Contending that there was fraud on the part of the respondent by notifying the
petitioners at the lawyer's office, notwithstanding
it not being their elected
domicile, is considered invalid. This assertion is rebutted by the fact
that a power of attorney was duly issued to the lawyer by the representative of
the heirs of the deceased. This power of attorney holds validity before all
courts, thereby establishing the lawyer's office as the chosen domicile
for the purpose of serving necessary documents. This determination is grounded
in the provisions of Article 56 and 153 of the Civil Procedure Code, as well as
Article 6 of Cabinet Decision No. 57 of 2018 - as amended - on the Issuance of
the Implementing Regulation of the aforementioned law.
(4)
Ruling “Validity of rulings: the binding force of res
judicata.”
The
petitioner's objection to the respondent's grounds in cassation is predicated on
a divergence regarding the competence of the trial court in evaluating the unity
of the parties, the subject matter, and the cause, as well as a perceived
confusion between the subject of the case and its cause. Such contention is
characterised as constituting a detriment to the binding force of res judicata
associated with the contested ruling.
This
objection is deemed untenable, given that it contravenes clauses 1 to 3 of
Article 169 of the Civil Procedure Law. Consequently, the objection is hereby
rejected.
1-
In accordance with the provisions outlined in Article 6 of Cabinet Decision No.
57 of 2018, pertaining to the Implementing Regulation of Federal Law No. 11 of
1992 on the Civil Procedure Law, as amended by Cabinet Decision No. 33 of 2020,
it is expressly stipulated that (A notice may be served upon an individual
through any of the following methods: a- ........ b- To the person directly,
regardless of their location, or at their domicile or place of residence, or
through their designated agent. In the event of the individual refusing to
accept the notice, such refusal is considered a valid notification to the person
concerned ........).
2-
It is prescribed that the term "fraud" encompasses all actions undertaken by an
adversary with the explicit intent to deceive the court. This includes tactics,
deception, concealment, false presentations, and the steadfast and insistent
pursuit of such actions to a degree that implies their validity, with the
ultimate aim of misleading the court and influencing its opinion. It is further
established that the fraud forming the foundation for a petition seeking review
shall originate from the respondent or their agent, exert an influence on the
court's opinion, and have been deliberately concealed by the
petitioner.
3-
Whereas in light of the aforementioned circumstances, the basis for the
objection is rooted in the alleged fraud committed by the first respondent in
serving the notice at the office of the lawyer, Mr. [Name], notwithstanding that
it was not their officially chosen domicile. and the buyer, [Name]. The dispute
reached its resolution through the Supreme Court's decision on 9/2/2021 in
Cassation No. 909 of 2020, which reversed and adjudicated the merits of Appeal
No. 2426 of 2019, Sharjah Civil. The petitioners' inheritor had filed the
aforementioned appeal, and the Supreme Court rejected it, affirming the
annulment of the understanding agreement between the first respondent and the
petitioners' inheritor dated 15/10/2008. It is crucial to highlight that the
lawyer, Mr. [Name], acted as the representative of the seller, a Kuwaiti
national, in the dispute until the court of the next instance issued a ruling in
his favour on 10/11/2020. Subsequent to this ruling and upon the death of the
seller on 13/11/2020, the lawyer's power of attorney for his deceased client
lapsed. However, one of the heirs of the deceased, [Name], acting as an agent on
behalf of the remaining nine living heirs with full legal capacity, appointed
the lawyer [Name] as an agent to litigate on their behalf in all cases and
disputes to which he is a party, in any capacity, before all courts of the
United Arab Emirates of all types and degrees. This appointment, supported by a
special power of attorney authenticated on 7/12/2020 by the Authentication
Department of the Ministry of Justice, was executed without objection. This
official document substantiates the agency of the aforementioned lawyer acting
on behalf of his clients, granting him the authority to pursue their claims,
provide a defence on their behalf, and undertake all necessary measures until a
final ruling is issued on the merits. The evidence on record indicates that the
buyer, identified as the first respondent, initiated Cassation No. 909 of 2020
against the petitioners, who are the heirs of the deceased seller. The
notification to the petitioners was carried out at the address specified in the
appeal statement, as evidenced by a photocopy of the uncontested civil cassation
statement notification form attached to a copy of the statement. The process
server attested that on 17/10/2020, he proceeded to the address indicated on the
notice, i.e., [Name] Law Firm. Law Firm. Subsequent to presenting the
notification to the employee, [Name], he stated that the respondent was
currently abroad and insisted that any notice should be made in person only.
Likewise, the appellant in the aforementioned cassation, on 4/1/2021, employed
the same method. Following the process server's presentation of the notice to
the legal advisor in the office of lawyer [Name], the legal advisor expressed
that the notice should be served in person only. In light of these
circumstances, the office of the attorney, [Name], appointed by the agent of the
deceased's heirs during the cassation stage, is validly designated as the
elected domicile. This election is deemed sufficient for the service of
necessary documents to proceed with the case at the level of litigation to which
he has been assigned, in accordance with the provisions of Article 56 of the
Federal Civil Procedure Law. This assertion holds, given that the heirs duly
notified their agent at their elected domicile, complying with the requirements
of Article 153 of the same law, using one of the methods specified in Article 6
of Cabinet Decision No. 57 of 2018, as amended by Cabinet Decision No. 33 of
2020. Notwithstanding the office employee and legal advisor both refusing to
accept the notice, despite the existence of an undisputed official document
validating the lawyer's power of attorney, the notification process is deemed
correct. The rejection by both the office employee and the legal advisor is
construed as effective notification to the petitioners, and in light of this
rejection, it is asserted that there is no basis to claim fraud on the part of
the respondent that could have impacted the contested ruling. Consequently, the
objection is deemed untenable and is recommended for rejection.
4-
The petitioner's objection, asserting that the respondent's appeal in Cassation
No. 909 of 2020 contested the authority of the trial court to assess the unity
of the parties, the subject matter, and the cause, in contravention of Article
49 of the Evidence Law, and amalgamated the subject of the case and its cause
with legal arguments, thereby deeming the contested ruling of 10/11/2020 in
Appeal No. 2426 of 2020 to have applied the correct legal principle, is deemed
unfounded. Consequently, the cassation should have been dismissed. This
objection is considered untenable, as the substance of the stated approach
amounts to nothing more than a challenge to the binding force of res judicata
acquired by the contested ruling of 9/2/2021. Such a challenge is not a valid
ground for seeking a review, particularly when it does not fall within the
limited cases specified in Clauses 1, 2, and 3 of Article 169 of the Federal
Civil Procedure Law. Consequently, the objection is deemed
unacceptable.
Whereas
in the facts, as apparent pursuant to the perusal of the contested ruling in the
petition and the remaining documents, the first respondent /[Name] previously
initiated Suit No. 8413 of 2018, a Plenary Civil, against the inheritor of the
petitioners and the second respondent, [Name]. The relief sought was a judgment
annulling the contract dated 15/10/2018, which constituted the subject matter of
the dispute, and provisionally reducing the property price by approximately
37.5%, in accordance with the final requests made. The court of first instance,
on 21/11/2019, rendered a decision to annul the understanding agreement between
the first respondent and the inheritor of the petitioners, dated 15/10/2008.
Following an appeal in cassation by the inheritor, the court of second instance,
on 7/4/2020, deemed Appeal No. 2426 of 2019 inadmissible due to a prior
adjudication. Subsequently, the appellant contested this decision with Cassation
No. 433 of 2020. The Federal Supreme Court, in response, reversed and remanded
the case to the issuing court for reconsideration by a different panel. The
court of the next instance annulled the appealed ruling, asserting that the case
was inadmissible due to its previous adjudication in the two Cassations No. 255
- 277 of 2012, Civil Supreme, and Case No. 29 of 2019, Civil Plenary.
Dissatisfied with this decision, the first respondent appealed with two
cassations: the first under No. 844 of 2020, challenging both the petitioners'
inheritor and the second respondent, and the second under No. 909 of 2020,
disputing the petitioners, which is the subject of the present review. After the
Federal Supreme Court deliberated on both cassations and consolidated them for
connection, on 8/2/2021, it rejected Cassation No. 844 of 2020 and reversed the
contested ruling concerning Cassation No. 909 of 2020. The court adjudicated the
merits of Appeal No. 2426 of 2019, Sharjah Civil, by rejecting it and confirming
the appealed ruling.
The
ruling in question faced opposition from the heirs of the late [Name], leading
them to challenge it through a petition for review. The cassation for review was
duly presented to the court in a Council Chamber, which deemed it worthy of
consideration in a session. The cassation was subsequently heard, as documented
in the minutes of the sessions. The pronouncement of the ruling is scheduled for
today's hearing.
The
cassation seeking review is founded on two grounds, the first of which the
appellants contest in the contested ruling. They contend that the failure to
notify the petitioners as respondents, in accordance with the provisions of
Articles 153, 154, and 155 of Federal Law No. 10 of 2014, and Article 8 of the
same law, constitutes a breach. Additionally, they allege fraud committed by the
appellant during the hearing of the contested ruling, asserting that the
notification to the petitioners at the office of lawyer [Name] falsely claimed
it as their elected domicile. This, according to the appellants, satisfies the
requirements of the first paragraph of Article 169, forming the basis for the
petition and necessitating the withdrawal and review of the contested ruling in
line with their requests.
This
objection lacks merits, since
in accordance
with the provisions outlined in Article 6 of Cabinet Decision No. 57 of 2018,
pertaining to the Implementing Regulation of Federal Law No. 11 of 1992 on the
Civil Procedure Law, as amended by Cabinet Decision No. 33 of 2020, it is
expressly stipulated that (A notice may be served upon an individual through any
of the following methods: a- ........ b- To the person directly, regardless of
their location, or at their domicile or place of residence, or through their
designated agent. In the event of the individual refusing to accept the notice,
such refusal is considered a valid notification to the person concerned
........).
It
is prescribed that the term "fraud" encompasses all actions undertaken by an
adversary with the explicit intent to deceive the court. This includes tactics,
deception, concealment, false presentations, and the steadfast and insistent
pursuit of such actions to a degree that implies their validity, with the
ultimate aim of misleading the court and influencing its opinion. It is further
established that the fraud forming the foundation for a petition seeking review
shall originate from the respondent or their agent, exert an influence on the
court's opinion, and have been deliberately concealed by the
petitioner.
Whereas
in light of the aforementioned circumstances, the basis for the objection is
rooted in the alleged fraud committed by the first respondent in serving the
notice at the office of the lawyer, Mr. [Name], notwithstanding that it was not
their officially chosen domicile. and the buyer, [Name]. The dispute reached
its resolution through the Supreme Court's decision on 9/2/2021 in Cassation No.
909 of 2020, which reversed and adjudicated the merits of Appeal No. 2426 of
2019, Sharjah Civil. The petitioners' inheritor had filed the aforementioned
appeal, and the Supreme Court rejected it, affirming the annulment of the
understanding agreement between the first respondent and the petitioners'
inheritor dated 15/10/2008. It is crucial to highlight that the lawyer, Mr.
[Name], acted as the representative of the seller, a Kuwaiti national, in the
dispute until the court of the next instance issued a ruling in his favour on
10/11/2020. Subsequent to this ruling and upon the death of the seller on
13/11/2020, the lawyer's power of attorney for his deceased client lapsed.
However, one of the heirs of the deceased, [Name], acting as an agent on behalf
of the remaining nine living heirs with full legal capacity, appointed the
lawyer [Name] as an agent to litigate on their behalf in all cases and disputes
to which he is a party, in any capacity, before all courts of the United Arab
Emirates of all types and degrees. This appointment, supported by a special
power of attorney authenticated on 7/12/2020 by the Authentication Department of
the Ministry of Justice, was executed without objection. This official document
substantiates the agency of the aforementioned lawyer acting on behalf of his
clients, granting him the authority to pursue their claims, provide a defence on
their behalf, and undertake all necessary measures until a final ruling is
issued on the merits. The evidence on record indicates that the buyer,
identified as the first respondent, initiated Cassation No. 909 of 2020 against
the petitioners, who are the heirs of the deceased seller. The notification to
the petitioners was carried out at the address specified in the appeal
statement, as evidenced by a photocopy of the uncontested civil cassation
statement notification
form
attached to a copy of the statement. The process server attested that on
17/10/2020, he proceeded to the address indicated on the notice, i.e., [Name]
Law Firm. Law Firm. Subsequent to presenting the notification to the
employee, [Name], he stated that the
respondent was currently abroad and insisted that any notice should be made in
person only. Likewise, the appellant in the aforementioned cassation, on
4/1/2021, employed the same method. Following the process server's presentation
of the notice to the legal advisor in the office of lawyer [Name], the legal
advisor expressed that the notice should be served in person only. In light of
these circumstances, the office of the attorney, [Name], appointed by the agent
of the deceased's heirs during the cassation stage, is validly designated as the
elected domicile. This election is deemed sufficient for the service of
necessary documents to proceed with the case at the level of litigation to which
he has been assigned, in accordance with the provisions of Article 56 of the
Federal Civil Procedure Law. This assertion holds, given that the heirs duly
notified their agent at their elected domicile, complying with the requirements
of Article 153 of the same law, using one of the methods specified in Article 6
of Cabinet Decision No. 57 of 2018, as amended by Cabinet Decision No. 33 of
2020. Notwithstanding the office employee and legal advisor both refusing to
accept the notice, despite the existence of an undisputed official document
validating the lawyer's power of attorney, the notification process is deemed
correct. The rejection by both the office employee and the legal advisor is
construed as effective notification to the petitioners, and in light of this
rejection, it is asserted that there is no basis to claim fraud on the part of
the respondent that could have impacted the contested ruling. Consequently, the
objection is deemed untenable and is recommended for rejection.
The
petitioner's objection, asserting that the respondent's appeal in Cassation No.
909 of 2020 contested the authority of the trial court to assess the unity of
the parties, the subject matter, and the cause, in contravention of Article 49
of the Evidence Law, and amalgamated the subject of the case and its cause with
legal arguments, thereby deeming the contested ruling of 10/11/2020 in Appeal
No. 2426 of 2020 to have applied the correct legal principle, is deemed
unfounded. Consequently, the cassation should have been dismissed. This
objection is considered untenable, as the substance of the stated approach
amounts to nothing more than a challenge to the binding force of res judicata
acquired by the contested ruling of 9/2/2021. Such a challenge is not a valid
ground for seeking a review, particularly when it does not fall within the
limited cases specified in Clauses 1, 2, and 3 of Article 169 of the Federal
Civil Procedure Law. Consequently, the objection is deemed
unacceptable.