A24 v B24 [2025] ADGMCFI 0019 (25 August 2025)

A24 v B24 [2025] ADGMCFI 0019 (25 August 2025)

Under UAE law, as clarified by the October 2023 decision of the Dubai Court of Cassation, the dismissal of an arbitration due to non-payment of costs does not render the arbitration agreement null and void, inoperative, or incapable of being performed. The arbitration agreement remains valid and either party may recommence arbitration. Therefore, the proceedings must be stayed under section 16(2) of the Arbitration Regulations 2015.

Citation
[2025] ADGMCFI 0019
Parties
Claimant: A24; Defendant: B24
Jurisdiction
United Arab Emirates
Judgment Date
25 August 2025
Procedural Posture
Commercial and Civil / Jurisdictional Challenge at First Instance
Outcome
Proceedings stayed pursuant to section 16(2) of the Arbitration Regulations 2015.
Legal Topics
Stay of Proceedings, Arbitration Agreement, Jurisdiction, Non Payment of Arbitration Costs, Governing Law of Arbitration Agreement
Arbitration Commercial Law Civil Procedure Stay of Proceedings Arbitration Agreement Jurisdiction Non Payment of Arbitration Costs Governing Law of Arbitration Agreement

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Parties

A24

Claimant

B24

Defendant

Procedural Posture

Commercial and Civil / Jurisdictional Challenge at First Instance

Legal Issues

  1. 1 Whether the arbitration agreement is null and void, inoperative, or incapable of being performed due to non-payment of advance on costs
  2. 2 Whether the proceedings should be stayed under section 16(2) of the Arbitration Regulations 2015
  3. 3 What law governs the arbitration agreement for the purpose of section 16(2)

Ratio Decidendi

Under UAE law, as clarified by the October 2023 decision of the Dubai Court of Cassation, the dismissal of an arbitration due to non-payment of costs does not render the arbitration agreement null and void, inoperative, or incapable of being performed. The arbitration agreement remains valid and either party may recommence arbitration. Therefore, the proceedings must be stayed under section 16(2) of the Arbitration Regulations 2015.

Court Disposition

Proceedings stayed pursuant to section 16(2) of the Arbitration Regulations 2015.

Orders

  • The proceeding be stayed pursuant to section 16(2) of the Arbitration Regulations 2015.
  • No order as to costs in relation to the Jurisdiction Application.