Sandra Holding Ltd (2) Nuri Musaed Al Saleh V (1) Fawzi Musaed Al Saleh (2) Ahmed Fawzi Al Saleh (3) Yasmine Fawzi Al Saleh (4) Farah El Merabi [2023] DIFC CA 003 (06 September 2023)

Sandra Holding Ltd (2) Nuri Musaed Al Saleh V (1) Fawzi Musaed Al Saleh (2) Ahmed Fawzi Al Saleh (3) Yasmine Fawzi Al Saleh (4) Farah El Merabi [2023] DIFC CA 003 (06 September 2023)

The DIFC Courts do not have jurisdiction to grant a Worldwide Freezing Order in support of foreign proceedings where none of the parties or the subject matter fall within the statutory jurisdictional gateways of Article 5A(1)(a)-(d) of the Judicial Authority Law, and where there is no valid opt-in or other statutory basis. Procedural rules and general powers in the Court Law do not independently confer such jurisdiction. Submission to jurisdiction or failure to challenge jurisdiction in time cannot create jurisdiction where it does not otherwise exist. Accordingly, the Worldwide Freezing Order and the Contempt Order are set aside for lack of jurisdiction.

Citation
[2023] DIFC CA 003
Parties
Claimant/respondent: Sandra Holding Ltd; Claimant/respondent: Nuri Musaed Al Saleh; Defendant/appellant: Fawzi Musaed Al Saleh; Defendant/appellant: Ahmed Fawzi Al Saleh; Defendant/appellant: Yasmine Fawzi Al Saleh; Defendant/appellant: Farah El Merabi
Jurisdiction
United Arab Emirates
Judgment Date
06 September 2023
Procedural Posture
Appeal / Judgment on Appeal Against Worldwide Freezing Order and Contempt Order
Outcome
Appeal allowed; Worldwide Freezing Order and Contempt Order set aside for lack of jurisdiction.
Legal Topics
Worldwide Freezing Orders, Jurisdiction of DIFC Courts, Interim Relief in Support of Foreign Proceedings, Conduit Jurisdiction, Submission to Jurisdiction, Enforcement of Foreign Judgments
Civil Procedure Jurisdiction Injunctions Worldwide Freezing Orders Jurisdiction of DIFC Courts Interim Relief in Support of Foreign Proceedings Conduit Jurisdiction Submission to Jurisdiction +1 more

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Parties

Sandra Holding Ltd

Claimant/respondent

Nuri Musaed Al Saleh

Claimant/respondent

Fawzi Musaed Al Saleh

Defendant/appellant

Ahmed Fawzi Al Saleh

Defendant/appellant

Yasmine Fawzi Al Saleh

Defendant/appellant

Farah El Merabi

Defendant/appellant

Procedural Posture

Appeal / Judgment on Appeal Against Worldwide Freezing Order and Contempt Order

Legal Issues

  1. 1 Whether the DIFC Courts have jurisdiction to grant a Worldwide Freezing Order (WFO) in support of foreign proceedings where none of the parties fall within the main statutory jurisdictional gateways under Article 5A(1)(a)-(d) of the Judicial Authority Law (JAL)
  2. 2 Whether procedural rules (RDC 25.24) or general powers (Court Law Articles 22, 24, 32) can confer jurisdiction to grant such orders
  3. 3 Whether submission or failure to challenge jurisdiction in time can create jurisdiction for the DIFC Courts

Ratio Decidendi

The DIFC Courts do not have jurisdiction to grant a Worldwide Freezing Order in support of foreign proceedings where none of the parties or the subject matter fall within the statutory jurisdictional gateways of Article 5A(1)(a)-(d) of the Judicial Authority Law, and where there is no valid opt-in or other statutory basis. Procedural rules and general powers in the Court Law do not independently confer such jurisdiction. Submission to jurisdiction or failure to challenge jurisdiction in time cannot create jurisdiction where it does not otherwise exist. Accordingly, the Worldwide Freezing Order and the Contempt Order are set aside for lack of jurisdiction.

Court Disposition

Appeal allowed; Worldwide Freezing Order and Contempt Order set aside for lack of jurisdiction.

Orders

  • The Appeal is allowed.
  • The Worldwide Freezing Order is set aside.