NMC Healthcare Ltd & Ors v Dubai Islamic Bank PJSC & Anor (non-repayment of a corporate debt) [2023] ADGMCFI 0017 (25 July 2023)

NMC Healthcare Ltd & Ors v Dubai Islamic Bank PJSC & Anor (non-repayment of a corporate debt) [2023] ADGMCFI 0017 (25 July 2023)

The Assignments of Receivables Agreements did not assign any rights or interests of the Non-Guarantor Claimants in Insurance Receivables to Dubai Islamic Bank PJSC. The Non-Guarantor Claimants’ claim for restitution or unjust enrichment against DIB is rejected. DIB’s counterclaim for rectification of the ARAs is dismissed. The decision is based on the construction of the ARAs under UAE law, the lack of evidence of mutual intention to assign the NGCs’ rights, and the absence of grounds for rectification or unjust enrichment.

Citation
[2023] ADGMCFI 0017
Parties
Claimant: NMC Healthcare Ltd (in administration) (subject to a Deed of Company Arrangement); Claimants: The Companies listed in Schedule 1 to this Judgment; Claimant: Richard Fleming; Claimant: Benjamin Cairns; Defendant: Dubai Islamic Bank PJSC; Defendants: The Insurance Companies and Third Party Administrators listed in Schedule 2 to this Judgment; Defendant: Aetna Global Benefits (Middle East) LLC; Defendant: Dubai Insurance Company psc; Defendant: Gulf Insurance Group (Gulf) BSC (formerly Axa Insurance (Gulf) BSC); Defendant: American Life Insurance Company; Defendant: Neuron LLC; Defendant: NAS Administration Services LLC; Defendant: MedNet UAE FZ LLC; Defendant: National General Insurance (psc) - Healthnet; Defendant: MSH International LLC; Defendant: Saudi Arabian Insurance Company BSC; Defendant: Al Buhaira National Insurance Company; Defendant: GlobeMed Gulf Healthcare Solutions LLC
Jurisdiction
United Arab Emirates
Judgment Date
25 July 2023
Procedural Posture
Commercial and Civil / Judgment After Trial
Outcome
Partial judgment for Claimants; some claims dismissed; further submissions required on remaining claims.
Legal Topics
Assignment of Receivables, Restitution, Unjust Enrichment, Rectification, Contractual Interpretation, Foreign Law (uae Law), Fraud, Abuse of Rights, Agency, Authority of Company Managers, Arbitration and Jurisdiction, Remedies (declaration)
Commercial Law Insolvency Law Banking Law Contract Law Civil Procedure Assignment of Receivables Restitution Unjust Enrichment +9 more

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Parties

NMC Healthcare Ltd (in administration) (subject to a Deed of Company Arrangement)

Claimant

The Companies listed in Schedule 1 to this Judgment

Claimants

Richard Fleming

Claimant

Benjamin Cairns

Claimant

Dubai Islamic Bank PJSC

Defendant

The Insurance Companies and Third Party Administrators listed in Schedule 2 to this Judgment

Defendants

Aetna Global Benefits (Middle East) LLC

Defendant

Dubai Insurance Company psc

Defendant

Gulf Insurance Group (Gulf) BSC (formerly Axa Insurance (Gulf) BSC)

Defendant

American Life Insurance Company

Defendant

Neuron LLC

Defendant

NAS Administration Services LLC

Defendant

MedNet UAE FZ LLC

Defendant

National General Insurance (psc) - Healthnet

Defendant

MSH International LLC

Defendant

Saudi Arabian Insurance Company BSC

Defendant

Al Buhaira National Insurance Company

Defendant

GlobeMed Gulf Healthcare Solutions LLC

Defendant

Procedural Posture

Commercial and Civil / Judgment After Trial

Legal Issues

  1. 1 Whether the Assignments of Receivables Agreements assigned rights or interests of the Non-Guarantor Claimants in Insurance Receivables to Dubai Islamic Bank PJSC
  2. 2 Whether Non-Guarantor Claimants have a claim for restitution or unjust enrichment against Dubai Islamic Bank PJSC
  3. 3 Whether the Assignments of Receivables Agreements should be rectified under UAE law

Ratio Decidendi

The Assignments of Receivables Agreements did not assign any rights or interests of the Non-Guarantor Claimants in Insurance Receivables to Dubai Islamic Bank PJSC. The Non-Guarantor Claimants’ claim for restitution or unjust enrichment against DIB is rejected. DIB’s counterclaim for rectification of the ARAs is dismissed. The decision is based on the construction of the ARAs under UAE law, the lack of evidence of mutual intention to assign the NGCs’ rights, and the absence of grounds for rectification or unjust enrichment.

Court Disposition

Partial judgment for Claimants; some claims dismissed; further submissions required on remaining claims.

Orders

  • The Assignments of Receivables Agreements did not assign any rights or interests of the Non-Guarantor Claimants in Insurance Receivables.
  • The Non-Guarantor Claimants’ claim against the First Defendant for restitution or unjust enrichment is rejected.