Decree No. (26) of 2013
Concerning the
Rent Disputes Settlement Centre in the Emirate of Dubai[1]
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We, Mohammed bin Rashid
Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil
Code of the United Arab Emirates and its amendments;
Federal Law No. (11) of 1992 Issuing the Civil
Procedure Code and its amendments;
Law No. (3) of 1992 Establishing Dubai Courts
and its amendments;
Law No. (6) of 1992 Establishing the Judicial
Council and its amendments;
Law No. (2) of 2003 Concerning the Profession
of Renting and Leasing Real Property in the Emirate of Dubai;
Law No. (3) of 2003 Establishing the Executive
Council of the Emirate of Dubai;
Law No. (7) of 2006 Concerning Real Property
Registration in the Emirate of Dubai;
Law No. (27) of 2006 Concerning Management of the
Government of Dubai Human Resources and its amendments;
Law No. (26) of 2007 Regulating the
Relationship between Landlords and Tenants in the Emirate of Dubai and its
amendments;
Law No. (15) of 2009 Concerning Hearing Rent
Disputes in Free Zones;
Decree No. (2) of 1993 Forming a Special
Tribunal to Determine Disputes between Landlords and Tenants and its
amendments;
Regulation No. (3) of 2006 Determining Areas
for Ownership by Non-UAE Nationals of Real Property in the Emirate of Dubai and
its amendments; and
Local Order No. (1) of 2004 Concerning the
Fees of the Rent Tribunal in the Emirate of Dubai,
Do hereby issue this
Decree.
This
Decree will be cited as “Decree No. (26) of 2013 Concerning the Rent Disputes Settlement
Centre in the Emirate of Dubai”.
The following words and
expressions, wherever mentioned in this Decree, will have the meaning indicated
opposite each of them unless the context implies otherwise:
|
Emirate: |
The
Emirate of Dubai. |
|
Ruler: |
His
Highness the Ruler of Dubai. |
|
Executive
Council: |
The
Executive Council of the Emirate of Dubai. |
|
Council: |
The
Judicial Council. |
|
Department: |
The
Land Department. |
|
Centre: |
The
Rent Disputes Settlement Centre in the Emirate. |
|
Tribunal: |
The
tribunal formed at the First Instance Division or Appellate Division of the
Centre. |
|
Rent
Dispute: |
A
dispute that arises between a Landlord and a Tenant in relation to leasing
and renting immovable property. |
With a view to supporting
sustainable development in the Emirate, this Decree aims to establish a specialised
judicial system to hear Rent Disputes, and to develop the procedure for
determination of such disputes through an expeditious and simple process for
the purpose of realising social and economic stability for all Persons engaged
in the Real Property rental sector and other related sectors.
a. The provisions of this Decree will apply to the Special Tribunal to
Determine Disputes between Landlords and Tenants established pursuant to the
above-mentioned Decree No. (2) of 1993.
b. The name “Special Tribunal to Determine Disputes between Landlords and
Tenants” is hereby replaced by the name “Rent Disputes Settlement Centre in the
Emirate of Dubai”.
The Centre will have its head office
in the Department, and may establish other offices in the Emirate.
a. The Centre will have the exclusive jurisdiction to:
1. determine all Rent Disputes that arise between Landlords and Tenants of
Real Property situated in the Emirate, including in free zones, and counterclaims
arising therefrom, as well as determine applications for interim or urgent
relief filed by any of the parties to a Lease Contract;
2. determine appeals from the decisions and judgments that are subject to
appeal in accordance with the provisions of this Decree and the regulations and
resolutions issued in pursuance hereof; and
3. enforce the decisions and judgments issued by the Centre in the Rent
Disputes that fall within its jurisdiction.
b. The Centre will have no jurisdiction to hear the following Rent
Disputes:
1. Rent Disputes that arise within the free zones which have tribunals or
special courts having jurisdiction to determine the Rent Disputes that arise
within their boundaries;
2. Rent Disputes that arise from a lease finance contract; and
3. disputes that arise from long-term Lease Contracts covered by the above-mentioned Law No. (7) of 2006.
a. The organisational structure of the Centre will consist of two (2) sectors:
a judicial sector and an administrative sector.
b. The judicial sector will comprise the following divisions and
organisational units:
1.
the Mediation and Conciliation
Directorate;
2.
the First Instance Division;
3.
the Appellate Division; and
4.
the Judgment Enforcement
Directorate.
c. The administrative sector of the Centre will comprise a number of
organisational units charged with the duty of providing technical and
administrative support to the judicial sector.
A chairman, who must be a judge
whose grade is not lower than the grade of an appellate court judge, will be
appointed to the Centre pursuant to a decree issued by the Ruler. The chairman will
undertake the supervision of the judicial sector of the Centre and may, in
particular:
1. supervise the distribution of claims at the First Instance Division
and the Appellate Division;
2. propose the regulations and resolutions for the purpose of regulating
work in the judicial sector of the Centre, including the fees and the charges
for services provided by the Centre; and
3. coordinate with all judicial and government entities with respect to
all matters relating to the work of the Centre in the judicial sector.
A secretary general will be
appointed to the Centre pursuant to a resolution issued by the Director General
of the Department to undertake the supervision of the administrative sector of
the Centre and any other duties assigned or delegated to him by the chairman of
the Centre.
a. A Mediation and Conciliation Directorate will be established in the
Centre with the power to amicably settle Rent Disputes in accordance with the
rules adopted in this respect by the chairman of the Centre, with the exception
of the following:
1. orders, applications, and claims which are urgent or interim; and
2. claims that have been registered before the effective date of this
Decree.
b. The Mediation and Conciliation Directorate will be comprised of a
number of legal practitioners and experts to be appointed by the Department.
c. Rent Disputes submitted to the Mediation and Conciliation Directorate will
be heard and settled by a number of specialists working under the supervision
of a judge seconded to work with the Centre for this purpose.
d. The Mediation and Conciliation Directorate will hear a Rent Dispute
submitted to it by summoning the parties or their representatives, reviewing
the documents and related evidence, proposing a settlement to the parties, and
reconciling their points of view for the purpose of reaching amicable
settlement of the Rent Dispute.
e. The time bar periods and limitation periods stipulated by the
legislation in force will be suspended from the date of registering the Rent
Dispute with the Mediation and Conciliation Directorate.
f.
The Mediation and Conciliation
Directorate will seek to amicably settle the Rent Dispute within a period not
exceeding fifteen (15) days from the date of appearance of the parties before
it. This period may be extended for the same period or periods by a decision of
the judge supervising the Mediation and Conciliation Directorate.
g. Where settlement between the parties to the Rent Dispute is reached,
this settlement will be documented in a settlement agreement signed by the
parties and approved by the judge supervising the Mediation and Conciliation
Directorate. This agreement will have the force of a writ of execution.
h. The Mediation and Conciliation Directorate may, as it deems
appropriate, seek assistance from experts and specialists to provide technical
expertise in the matters submitted to it. The decision to seek assistance from
an expert will specify the scope of his assignment, the period required for
completion of this assignment, his remuneration, and the party responsible for
payment of such remuneration.
i.
A fee will be charged for the
registration of a Rent Dispute submitted to the Mediation and Conciliation Directorate
in accordance with the fees prescribed for the registration of claims by the
Centre. One-half of the fee will be refunded if amicable settlement is reached
between the parties to the Rent Dispute.
The chairs and members of the
Tribunals that comprise the First Instance Division and Appellate Division will
be appointed pursuant to a resolution of the chairman of the Council.
Before assuming their duties,
members of Tribunals who are not judges will take the following oath before the
chairman of the Council:
“I swear by Allah the Almighty that I will
administer justice, respect the laws, and discharge my duties with integrity
and honesty”.
a. The First Instance Division will be comprised of a sufficient number
of Tribunals, each of which is formed of a chair and two (2) competent and
experienced members specialised in law and Real Property. These Tribunals will
have the jurisdiction to determine the Rent Disputes referred to in Article (6)
of this Decree, and the chair of each Tribunal must be a judge. Notwithstanding the foregoing,
the chairman of the Council may appoint an experienced and specialised legal
practitioner as chair of any of these Tribunals.
b. The chairman of the Centre may designate one or more Tribunals within
the First Instance Division to hear certain types of Rent Disputes depending on
the nature of the claim, or the location or nature of use of the leased Real Property
Unit.
The Appellate Division will be
comprised of a sufficient number of Tribunals, each of which is formed of two
(2) judges and one (1) Person known for his experience and expertise in Real
Property. The chair of each Tribunal must be a judge. These Tribunals will have
jurisdiction to determine the appeals from decisions and judgments issued by
the First Instance Division. Judgments of the Appellate Division will be final
and not subject to any form of appeal, and will be enforced in accordance with
the procedures and rules adopted by the Centre.
Meetings of Tribunals will be
valid if attended by all their members, and its decisions and judgments will be
issued in the name of the Ruler, unanimously or by majority vote.
The Tribunals formed under the
provisions of this Decree must determine the rent claims referred to them
within a period not exceeding thirty (30) days from the date of referral of the
claim file to them. This period may be extended for the same period in
accordance with the rules and procedures adopted in this respect by the
chairman of the Council.
a. Judgments of the First Instance Division will be appealed to the
Appellate Division, with the exception of judgments issued in rent claims whose
value is less than one hundred thousand Dirhams (AED 100,000.00), which will be
final and not subject to any form of appeal.
b. Judgments issued by the First Instance Division for claims whose value
is less than the amount mentioned in paragraph (a) of this Article may be
appealed in any of the following cases:
1. where an eviction judgment is issued;
2. where the judgment issued breaches the rules of jurisdiction;
3. where the judgment grants relief that has not been requested by the
parties, which exceeds that which they requested, or where the judgment fails
to address relief requested by the parties;
4. where the judgment is issued against a Person who was not duly
represented in the claim, or where the service of the summons was invalid;
5. where the judgment is based on documents which are acknowledged as or
judicially declared to be false after the judgment has been issued, or where
the judgment is based upon testimony that is judicially declared to be false
after the judgment has been issued; or
6. where a party to a contract concealed from the First Instance Division
evidence or documents that would have changed the judgment.
a. The time limit for appeal of a judgment issued by the First Instance
Division is fifteen (15) days from the day following the date of the hearing in
which the judgment was issued. Where the party against whom the judgment is
issued has failed to appear in all hearings of the claim and failed to submit a
defence, the time limit for appeal will commence from the date upon which he is
served with the judgment.
b. To admit an appeal of a judgment issued by the First Instance Division
in claims involving financial claims, the judgment debtor must deposit half of
the judgment amount with the Centre until the appeal is determined.
Notwithstanding the foregoing, the chairman of the Centre may decide to admit
the appeal without deposit of that amount or upon payment of a part thereof.
The Tribunals will determine
Rent Disputes and appeals submitted to it by reference to:
1. the legislation in force in the Emirate;
2. the provisions of Islamic Sharia;
3. principles of natural justice and rules of truth and fairness; and
4. custom, provided that such custom does not contradict the laws, public
order, or public morals.
The
Chairman of the Centre will issue regulations concerning the procedures and
rules to be adopted by the Centre in all matters relating to the registration, determination,
and enforcement of claims and applications by the First Instance Division, the
Appellate Division, the Mediation and Conciliation Directorate, or the Judgment
Enforcement Directorate. Until such regulations are issued, the Centre may be
guided by the provisions of the procedural rules adopted by the Special
Tribunal to Determine Disputes between Landlords and Tenants.
All final and irrevocable
judgments issued by the First Instance Division and the Appellate Division will
be enforced by the Judgment Enforcement Directorate of the Centre. The chairman
of the Centre may seek assistance from the Execution Department of Dubai Courts
to enforce the judgments issued by the Centre.
Subject to the provisions of
Article (17) of this Decree, the decisions and judgments that were not enforced
before the effective date of this Decree may be appealed within thirty (30)
days from such effective date.
a.
In return for registering the claims
and applications submitted to the Centre and other services provided by it, the
Centre will charge fees as determined pursuant to a resolution of the Chairman
of the Executive Council.
b.
The fees stipulated in the above-mentioned
Local Order No. (1) of 2004 will continue to apply until the Executive Council
resolution referred to in paragraph (a) of this Article is issued.
The chairman of the Council will
issue regulations concerning the financial remuneration that may be paid to
chairs and members of Tribunals.
The work of the Centre in the
judicial and administrative sectors will be automated to ensure simplification
of procedure and expeditious determination of Rent Disputes.
The Department will provide all
necessary support to the Centre to enable it to perform the functions assigned
to it pursuant to this Decree, including providing office premises and
administrative, financial, and technical support.
The financial resources of the
Centre will consist of:
1. support allocated to the Centre in the budget of the Department; and
2. fees and charges for the services collected by the Centre with respect
to claims, applications, transactions, and other services provided by the
Centre.
a.
The Centre will hear and
determine all claims and applications being heard by the Special Tribunal to
Determine Disputes between Landlords and Tenants on the effective date of this
Decree. These claims and applications will be referred at their current status
unless the case is reserved for judgment.
b.
All Employees of the Special
Tribunal to Determine Disputes between Landlords and Tenants will be
transferred to the Department as of the effective date of this Decree
without prejudice to their existing rights. Law No. (27) of 2006 Concerning
Management of the Government of Dubai Human Resources and its amendments will
apply to these Employees.
a.
This Decree supersedes Law No.
(15) of 2009 Concerning Hearing Rent Disputes in Free Zones and Decree No. (2)
of 1993 Forming a Special Tribunal to Determine Disputes between Landlords and
Tenants.
b.
Any provision in any other
legislation will be repealed to the extent that it contradicts the provisions
of this Decree.
The chairman of the Council will issue the resolutions required for the implementation of the provisions of this Decree.
This
Decree will be published in the Official Gazette and will come into force sixty
(60) days after the date of its publication.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 September 2013
Corresponding to 13 Thu al-Qidah 1434 A.H.
© 2015 The Supreme Legislation
Committee in the Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict the Arabic text will prevail.