Abu Dhabi Court of Cassation (General Assembly), Request No. 1 of 2018 (Civil), decision of 6 February 2018
The bar on cassation appeals against appellate rulings 'in execution procedures' (Article 173(3) of the former Civil Procedure Law) covers only rulings on the measures the execution judge takes to enforce a title. Rulings on a prior legal question on which execution depends, such as whether a valid execution title exists against the debtor, may be appealed in cassation. An assignment of a right (حوالة الحق) requires the consent of the assignor, the assignee and the debtor under Article 1109 of the Civil Transactions Law; without the debtor's consent it is not enforceable against it and is not an execution title.
Two parties concluded a settlement before a conciliation committee under which a debt was assigned to a third company, and then sought to enforce the settlement against that company through the execution judge. The company objected (إشكال في التنفيذ) that it had never agreed to the assignment, and the execution measures against it were cancelled at first instance and on appeal. The creditors appealed in cassation (No. 151 of 2017); the respondent argued that no cassation appeal lies against appellate rulings in execution procedures. The question was referred to the General Assembly because of conflicting decisions.
The General Assembly held that Article 173(3) of the Civil Procedure Law, which makes appellate rulings 'in execution procedures' final, refers to rulings on the measures the execution judge takes to enforce judgments and other execution titles. Disputes about a legal situation that must exist before any such measure is taken, and on which the execution judge's decision depends, are not 'execution procedures' in that sense, and rulings on them may be appealed in cassation. The dispute here, over whether the company had consented to the assignment and whether the settlement record was an execution title against it, was such a prior question, so the appeal was admissible.
On the merits, the execution judge has exclusive jurisdiction over execution and urgent execution disputes (Article 220). An execution title must embody a right that is certain, liquidated and due. An assignment of a right substitutes one creditor for another and, under Article 1109 of the Civil Transactions Law, requires the consent of all three parties: assignor, assignee and debtor. The settlement contained no obligation on the company, which was not party to it; knowledge of the assignment, service of the claim or its own objection did not amount to consent. The courts below were right to cancel the execution measures. The General Assembly adopted the principle on Article 173(3) and dismissed the appeal.
Creditors sometimes try to collect by having a debtor's receivable assigned to them and enforcing that assignment against the third party. The decision confirms that, under the Civil Transactions Law of 1985, an assignment of a right binds the debtor only with its consent, and an assignment it did not sign is no basis for execution against it. It also settled that disputes about whether a valid execution title exists can reach the Court of Cassation.
| Articles 173(3) and 220 of Federal Law No. 11 of 1992 (former Civil Procedure Law) Decided under this law; it has been replaced by Civil Procedure Code. |
| Article 1109 of Federal Law No. 5 of 1985 (Civil Transactions Law) — text of article 1109 Decided under this law; it has been replaced by Civil Transactions Law 2025. |
“ويشترط لصحتها رضا الأطراف الثلاثة المحيل والمحال والمحال عليه وفقاً للأحكام الصريحة المقررة بالمادة 1109 من قانون المعاملات المدنية”Short quotation from the judgment as published by the court. The full judgment is on the court’s official service.
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