Inner House backs enforcement of Dubai judgment in Scotland

Papel, the successful reclaimer and pursuer, secured enforcement of a Dubai Commercial Court payment order. The case centred on whether Monitox was given sufficient notice of proceedings to allow it the opportunity to present its case, or whether there was a breach of natural justice.

Monitox was sent emails in relation to the debt in English, acknowledged and accepted the debt. They failed to pay the debt and were then served an English-language ‘legal notice’ in terms of Dubai’s expedited, admitted debt procedure. Thereafter, Arabic-language court notices from the Dubai Courts were sent.

While the commercial judge agreed with Monitox’s defence, the Inner House held that providing court notices in Arabic, where the parties contractually submitted to Dubai’s jurisdiction, did not constitute a breach of natural justice.

Lord Clark, delivering the opinion of the court, held that Monitox had received sufficient notice through the various notices, including an English-language pre-application notice and partial English translations of subsequent court orders. There was no breach of natural justice in these circumstances. Monitox could have sought legal advice about the order, obtained a translation if need be, and brought its appeal. Several means of contacting the court were stated in its notices, including the court’s email address and telephone number.

This decision provides vital commercial certainty for Dubai and Scottish businesses, and is likely to have implications for enforcement disputes from other jurisdictions. It confirms that overseas decrees can be enforced in Scotland where parties have agreed to foreign jurisdiction and proper procedural notice has been provided under those procedural rules, even when court communications are not all conducted in English or translated.

“As more businesses operate on a truly global basis, this decision is important as it provides clarity and reassurance to companies dealing across borders.” said Iain McDougall, partner and head of MBM Commercial’s litigation practice. “It also confirms Scotland as a jurisdiction that supports international commerce.”

Papel was represented by MBM Commercial LLP with William Frain-Bell KC and Kenneth Young (both of Terra Firma Chambers) appearing.