Decree No. (33) of 2020
Concerning the Special Tribunal for
Unfinished and Cancelled Real Property Projects 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. (11) of 1992 Issuing the Civil Procedure Code, its Regulatory
Bylaw, and their amendments;
Federal Law No. (6) of 2018 Concerning Arbitration;
Law No. (9) of 2004 Concerning the Dubai International Financial Centre
and its amendments;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate
of Dubai and its amendments;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property
Developments in the Emirate of Dubai;
Law No. (13) of 2008 Regulating the Interim Real Property Register in
the Emirate of Dubai and its amendments;
Law No. (13) of 2016 Concerning the Judicial Authorities in the Emirate
of Dubai;
Law No. (4) of 2019 Concerning the Real Estate Regulatory Agency;
Decree No. (21) of 2013 Forming a Special Tribunal for Liquidation of
Cancelled Real Property Projects in the Emirate of Dubai and Settlement of
Associated Rights;
Decree No. (12) of 2018 Forming the Supreme Committee for Unfinished
Real Property Projects in the Emirate of Dubai; and
Executive Council Resolution No. (6) of 2010 Approving the Implementing
Bylaw of Law No. (13) of 2008 Regulating the Interim Real Property Register in
the Emirate of Dubai,
Do hereby issue this Decree.
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. |
|
Judicial Council: |
The
Judicial Council of the Emirate. |
|
DLD: |
The Land
Department. |
|
RERA: |
The Real
Estate Regulatory Agency. |
|
Tribunal: |
The
Special Tribunal for Unfinished and Cancelled Real Property Projects in the
Emirate of Dubai. |
|
Unfinished Real Property
Project: |
A Real
Property project whose construction has commenced but was suspended for
reasons attributable to the Real Property developer or purchaser, or for any
other reason whatsoever. |
|
Cancelled Real Property
Project: |
A Real
Property project that is cancelled based on any of the
conditions warranting its cancellation pursuant to the legislation in force
in the Emirate, or that has been referred to the Tribunal but has not yet
been liquidated. |
a. The
provisions of this Decree apply to the Special Tribunal for Liquidation of
Cancelled Real Property Projects in the Emirate of Dubai and Settlement of
Associated Rights formed pursuant to the above-mentioned Decree No. (21) of
2013.
b. The
name “Special Tribunal for Liquidation of Cancelled Real Property Projects in
the Emirate of Dubai and Settlement of Associated Rights” is hereby replaced by
“Special Tribunal for Unfinished and Cancelled Real Property Projects in the
Emirate of Dubai ”, wherever mentioned in any local legislation in force in the
Emirate.
The head
office of the Tribunal will be located at the DLD. The Tribunal may establish
other offices within the Emirate pursuant to a resolution of the Chairman of
the Judicial Council.
The
provisions of this Decree apply to the Real Property projects located within
the Emirate which are proven to be unfinished or in respect of which a
cancelation decision is issued pursuant to the provisions of the
above-mentioned Law No. (13) of 2008 and its Implementing Bylaw. However, this Decree
does not apply to the Real Property projects located within the Dubai
International Financial Centre boundaries.
The Tribunal
chairman and members will be nominated, and the terms of reference of the
Tribunal and the procedures for holding its meetings and for passing its
decisions and awards will be determined, pursuant to a resolution issued by the
Chairman of the Judicial Council.
a. The
Tribunal will have the jurisdiction to:
1. consider and determine the claims, applications, and appeals that were
being considered by the special tribunal formed pursuant to the above-mentioned
Decree No. (21) of 2013 and that have not yet been determined by a definitive decision or award;
2. consider and determine the claims, applications, and orders whose
subject matter or cause is an Unfinished Real Property Project;
3. consider and determine the claims, applications, and orders whose
subject matter or cause is a Cancelled Real Property Project or the liquidation of a Cancelled
Real Property Project;
4. consider the Unfinished Real Property Projects referred to the Tribunal
by RERA; and issue the decisions required for assigning the completion of any
Unfinished Real Property Project to another developer;
5. consider and determine grievances filed by Real Property developers
against RERA where a Real Property project is cancelled by
RERA pursuant to the above-mentioned Law No. (13) of
2008 and its Implementing Bylaw;
6. determine the rights and obligations of the Real
Property developers from whom Unfinished Real Property Projects
are withdrawn and those who will complete these
projects;
7. liquidate the Real Property projects in respect of which a final
cancellation decision is issued by RERA pursuant to the above-mentioned Law No.
(13) of 2008 and its Implementing Bylaw and Resolution No. (12) of 2018; and
settle the rights related to these projects after deduction of liquidation
expenses;
8. determine the rights of investors and purchasers in Unfinished Real Property
Projects;
9. determine all execution proceedings, grievances, and objections
whose subject matter or cause
is Unfinished Real Property
Projects or Cancelled Real Property projects; and
10. perform any other duties required for enabling the Tribunal to protect
and preserve the rights of all parties in Unfinished Real Property Projects and Cancelled Real Property Projects.
For the
purpose of performing the duties assigned to it pursuant to Article (6) of this
Decree, the Tribunal may:
1. consider and determine relevant ordinary and summary applications,
by one or more members of the Tribunal assigned pursuant to a resolution of its
chairman;
2. assign any of the Tribunal members to manage and prepare case files;
3. issue interim and preliminary orders and decisions,
including those obliging any Person to perform or desist from a
specific act;
4. propose mediation and conciliation between parties to disputes;
5. form sub-committees and determine their powers and duties;
6. appoint auditors, at the expense of the Real
Property developer, to audit the financial position of
the Cancelled Real Property Project and verify the amounts paid to the
developer by purchasers, the amounts deposited in the Escrow Account of the
project, and the amounts that have been expended;
7. issue orders to the Escrow Agent or Real
Property developer of the project in respect of any
matter related to liquidation of the Cancelled Real Property Project, including
the refund of amounts deposited in the Escrow Account or paid to the developer;
and
8. seek assistance from experts and specialists as it deems appropriate,
including the Real Property experts and specialists of the DLD, RERA, and the
Expertise and Disputes Settlement Department at His Highness the Ruler’s Court.
a. In
addition to the functions vested in it
under this Decree, the Tribunal will have the jurisdiction to:
1. consider and determine applications for annulment and ratification of
arbitration awards issued in respect of civil disputes that fall within the
jurisdiction of the Tribunal, including the claims and applications filed with
the Dubai International Financial Centre Courts which are related to Real
Property projects located outside of the Dubai International Financial Centre
boundaries; and
2. exercise the functions and powers assigned to the competent court of appeal
under the above-mentioned Federal Law No. (6) of 2018;
b. The
chairman of the Tribunal will have the
same functions and powers vested in the president of the competent court of appeal
under the above-mentioned Federal Law No. (6) of 2018.
c. The
procedures, cases, and time frames applicable to ratifying and challenging the
awards and decisions issued by
the Tribunal in accordance with paragraphs (a) and (b) of this Article will be
governed by the above-mentioned Federal Law No. (6) of 2018.
a. For
the purpose of enabling the Tribunal to
perform its duties with respect to Unfinished Real Property Projects, RERA will
submit a detailed report on each Unfinished Real Property Project, stating the
following:
1. the
information and details of the Unfinished Real
Property Project and its current situation;
2. the solutions proposed for dealing with the Unfinished Real Property Project. This includes determining the Real
Property developers who will complete the Unfinished Real Property Projects and
verifying their ability to complete the projects;
3. the actions taken by RERA in respect
of the Unfinished Real Property Project; and
4. any other information or details requested by the Tribunal
in relation to the Unfinished Real Property Project.
b. Prior
to completion of the liquidation process of Cancelled Real Property Projects by
the Tribunal in accordance with this Decree, RERA may request the Tribunal to
suspend the liquidation of these projects to reconsider them and determine
whether they can be completed and whether their related disputes can be
settled.
c. RERA
will submit to the Tribunal a detailed report on the Cancelled Real Property
Projects whose liquidation is
suspended pursuant to the provisions of paragraph (b) of this Article to enable
the Tribunal to take the appropriate action and decisions in this respect.
a. All
courts and judicial entities in the Emirate, including the Dubai International
Financial Centre Courts, may not consider any applications, claims, or appeals
that fall within the jurisdiction of the Tribunal and are filed with them after
the effective date of this Decree. Where such applications, claims, or appeals
were filed before the effective date of this Decree, the courts and judicial entities
must cease to consider them; and must refer the same to the Tribunal to
consider and determine them in accordance with the relevant rules and
procedures adopted by the Tribunal.
b. Execution
departments of all courts and judicial entities in the Emirate must refer to
the Tribunal all execution files that fall within the
jurisdiction of the Tribunal to consider them and issue the necessary decisions
in this respect in accordance with the provisions of this Decree.
The awards,
orders, and decisions issued by the Tribunal will be definitive and not subject
to ordinary appeal procedures. They will be executed by the Execution Court at
Dubai Courts in accordance with the relevant rules adopted by it.
Subject to
the provisions of this Decree, the Tribunal will exercise its powers in
accordance with:
1. the
legislation in force in the Emirate;
2. the provisions of Islamic Sharia;
3. custom, provided that such custom does not contradict the legislation in
force, public order, or public morals; and
4. the
principles of natural justice, truth, and fairness.
The
applications, orders, claims, and appeals that fall within the jurisdiction of
the Tribunal pursuant to this Decree are hereby exempted from the judicial fees
prescribed by law.
The Chairman
of the Judicial Council will issue a resolution assigning an entity to provide
administrative and technical support to the Tribunal.
The Chairman
of the Judicial Council will issue the resolutions required for the
implementation of the provisions of this Decree.
a. This
Decree supersedes the above-mentioned Decree No. (21)
of 2013.
b. Any provision in any other legislation will be repealed to the extent
that it contradicts the provisions of this Decree.
This Decree
will be published in the Official Gazette and will come into force on the day
on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 24
November 2020
Corresponding to 9 Rabi
al-Thani 1442 A.H.
©2021 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.