In the United Arab Emirates (UAE), payment orders and regular claims have two distinct mechanisms for protecting rights and collecting debts. Understanding these differences is crucial for individuals and businesses seeking to effectively secure their legal rights. In the UAE, a payment order is a judicial procedure aimed at collecting debts or financial claims without the need for a regular lawsuit. It is employed when the debt is;
(1) fixed
(2) due for payment, and
(3) Not disputed.
Examples of payment orders include promissory notes, bills of exchange, installments of settlements, or commercial debt declarations, among others. A payment order is characterized by rapid procedures compared to filing a regular claim. Payment orders are issued based on a request from the creditor without the need for lengthy hearings and do not require hearing notifications or even the presence of parties in court, further expediting the process. A payment order requires a legal notice to be sent specifying the exact amount and allowing a grace period of only 5 days for payment. If the debtor does not make the payment within this period, the creditor can submit a request to the court with documents proving the debt. The order is issued relatively quickly and is less costly than a regular claim. This mechanism is suitable for cases where there is no serious dispute over the debt. A payment order is an effective and efficient method of collecting due debts when they are not disputed. However, in cases where a debt is in serious dispute, or there are legal complexities, a regular claim is an optimal way to protect the rights of individuals and companies. Understanding the differences between these two mechanisms can help individuals and businesses make informed legal decisions and effectively secure their rights.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.