Sabrine Bin Jeddou – Legal Researcher
Qatar recently issued Law No. 4 of 2024 (the "Judicial Enforcement Law") as part of the State's efforts to enhance its legislative and judicial infrastructure. Enforcement proceedings were previously governed by the Civil and Commercial Procedures Law (Law No. 13 of 1990) in its third book (Articles 362 to 518) across five chapters. However, the rapid development and modernisation of the country's judicial system necessitated a deeper examination of the judicial enforcement process, leading to the enactment of a more consolidated body of enforcement legislation.
The Judicial Enforcement Law complements the legislative framework established under the National Initiative for Justice System Development, which has seen several laws governing judicial operations enacted over the past three years. It also supports the Supreme Judiciary Council's vision of achieving expedited justice by refining litigation procedures, advancing digitisation, accelerating litigation processes, and ensuring the prompt enforcement of judicial rulings, thereby upholding justice and ensuring that rights are duly granted.
Divided into seventeen chapters, the Judicial Enforcement Law introduces new sections not present in the previous Civil and Commercial Procedures Law. Notably, these include Chapter Five, "Powers of the Enforcement Judge" (Articles 34 – 44), Chapter Seven, "Insolvency" (Articles 49 – 50), and Chapter Eight, "Enforcement in Family Matters" (Articles 45 – 48), among other newly introduced and significantly updated provisions. Additionally, the Judicial Enforcement Law substantially updates existing provisions that were originally in the Civil and Commercial Procedures Law, which are detailed below.
New Enforcement System Structuring
One of the most notable features of the new Judicial Enforcement Law is its introduction of a fundamentally new structure, significantly differing from the system that has been in place for over three decades. Article 2 of the new law establishes a court named the "Enforcement Court", replacing the previous Enforcement Department under the repealed provisions of the Civil and Commercial Procedures Law.
According to the new legislation, the Enforcement Court will be presided over by a judge with a rank of at least "Deputy President of the Court of Appeal". In addition to the judicial body, the new law introduces the administrative framework for the Enforcement Court. Article 4 specifies the appointment of an administrative director, administrative staff, and a sufficient number of police officers and personnel to support the court's functions. Article 71 also requires secure facilities to be established and managed by the enforcement court for the storage of seized assets, and the appointment of a custodian responsible for their protection.
The new law also introduces new formalities for filing enforcement requests. Notably, the enforcement file has officially become electronic (Articles 29 and 30), starting with the registration of the request and payment of applicable fees, followed by verification and review of the required procedures and amounts.
Additionally, the law requires specific information to be included in the enforcement request (Articles 30 and 31), expanding the powers of the enforcement judge and ensuring that all relevant parties are fully informed about the creditor, debtor, and the debt.
Significantly, Article 31 abolishes the penalty of nullity previously imposed by Article 369 of the Civil and Commercial Procedures Law for failure to personally notify the debtor of the enforcement instrument. The law also replaces the "chosen address" with the "national address," reflecting a clear move towards digitisation of the entire system.
New Provisions Regarding Enforcement Instruments
Another significant innovation the new law introduces pertains to enforcement instruments. Article 6 of the law has made a substantial addition by recognising new types of documents with the force of an enforcement instrument, including cheques and lease contracts. This change facilitates quicker collection of cheque amounts without the usual procedural complexities associated with filing disputes. This legislative reform aims to expedite the enforcement process and alleviate the burden on the judiciary, as returned cheque cases constitute 70% of total cases in various courts, totalling approximately 20,000 cases annually. This situation has overloaded the judicial system and undermined the primary function of cheques in expediting commercial transactions.
The Judicial Enforcement Law also introduces important controls for these new provisions, as detailed in Article 24, stipulating that the cheque must not have been previously endorsed or transferred. Additionally, Articles 23 and 26 establish a three-year period from the date of issuance of the cheque within which an enforcement request must be filed. Despite the efficiency of these new rules, they raise several questions, including the grounds for challenging a cheque on the basis of forgery or misuse, and the handling of guarantee cheques.
Furthermore, the new law designates lease agreements as enforcement instruments. Upon the expiration of a lease, property owners can initiate eviction procedures without resorting to filing a lawsuit, thereby protecting their rights. However, this provision pertains solely to eviction and does not address claims for overdue rent or other issues, as outlined in Article 27. Additionally, the lease agreement must be registered in accordance with Law No. 4 of 2008 Concerning Property Leases.
Amendments to the Enforcement Procedures of Certain Instruments
The Judicial Enforcement Law retains several enforcement instruments previously regulated under the Civil and Commercial Procedures Law while introducing significant modifications to such instruments. Notably, it addresses the enforcement of foreign enforcement instruments. Article 13 of the new law incorporates the principle of "reciprocity," which aligns with the amended Article 379 of the Civil and Commercial Procedures Law. This principle requires that foreign judgments and orders be enforced based on reciprocal agreements with the issuing country. Additionally, the new law mandates notification concerning the parties involved in the enforcement proceedings relative to the originating case.
The new legislation outlines specific formal conditions for enforcing foreign judgments, detailed in Article 15. These conditions aim to streamline and enhance the efficiency of the enforcement process. For instance, a certified statement detailing the enforcement procedures followed in the issuing country must be provided, facilitating quicker execution of enforcement actions. Furthermore, Articles 17 to 20 of the new law address the enforcement of arbitration awards, ensuring consistency with the Qatari Arbitration Law (Law No. 2 of 2017) and harmonising the two legal frameworks. The law also introduces provisions for enforcement in family matters through Article 32. It requires that amounts due be settled before the distribution of an estate. Previously, enforcement could only be initiated against heirs or the estate manager after ten days from the date of notification with the enforcement instrument. Articles 45 to 48 elaborate on this, and Article 54 introduces new rules regarding the attachment of gifted or bequeathed assets, limiting seizure to up to half their value.
New Provisions Concerning the Powers of the Enforcement Judge
Article 33 of the Judicial Enforcement Law outlines the procedures for challenging enforcement proceedings and specifies certain cases in which such challenges may be raised. Under this article, the enforcement judge, in addition to having the authority to review objections, is granted the power to provide the judgment debtor with a period not exceeding ninety working days to file a substantive lawsuit to substantiate their challenge. The enforcement judge also has the authority to suspend enforcement proceedings during this period, with the option to extend the suspension, a power shared with the court handling the substantive matter.
The new legislation has expanded the powers of the enforcement judge, empowering them to assess the merit and viability of an enforcement request, particularly when it would not resolve substantive issues. The judge is also authorised to reject an enforcement request if it is determined that the enforcement would require a ruling on substantive matters. This safeguards against any misuse or abuse of enforcement rights under the new law.
Articles 33 to 43 further broaden the authority of the enforcement judge, allowing the judge to decide whether to hold hearings. The enforcement judge is also empowered to take appropriate precautionary or enforcement measures, such as ordering the arrest and detention of the judgment debtor, and restricting certain transactions or the use of specific government services, particularly for private companies and legal entities. The enforcement judge may also order government agencies to refrain from contracting with the judgment debtor.
One of the most significant powers in the Judicial Enforcement Law is found in Article 36, which permits the enforcement judge to take appropriate precautionary measures before notifying the debtor of the same. This includes inquiring about the debtor's assets and imposing precautionary attachments on them, with guidelines that emphasise a gradual approach and consideration of the concerned parties' circumstances. However, this authority is limited by Article 49, which prohibits the enforcement judge from taking such measures if the judgment debtor claims insolvency. Nevertheless, the enforcement judge can prevent the debtor from trading or owning shares in or contributing to commercial companies. Moreover, the subsequent article requires the debtor to initiate bankruptcy proceedings in accordance with the established legal rules.
Additionally, the powers of the enforcement judge have been expanded to include the authority to request assistance from the police or other competent authorities when necessary. The judge may also impose travel bans, prevent the debtor from terminating their residency, or order their departure or deportation from the country. The legislation requires relevant authorities to seek the court's approval before executing a deportation order.
New Provisions Regarding Appeals Against Enforcement Judge Decisions
In line with Articles 364 and 365 of the Civil and Commercial Procedures Law, the new legislation introduces Article 38 to clarify the methods of challenging rulings, orders, and decisions issued by an enforcement judge. The recognised methods of challenge are objection and appeal. Objections are permitted unless they are based on disputing or challenging the underlying judgment to be enforced. Appeals are to be heard by the appellate chambers of the court. The article stipulates that appeals must be filed within ten working days from the date the concerned parties are notified or become aware of the relevant orders and decisions. The rulings issued on these appeals are final and cannot be further contested. Additionally, the article specifies that the same appellate chamber is responsible for resolving any temporary disputes or objections that may arise during the enforcement process.
New Provisions For Real Estate and Auctions
The Judicial Enforcement Law sets out the procedures for executing judgments on all types of debtor-owned assets, whether movable or immovable. The enforcement judge is responsible for identifying the real estate owned by the debtor, after which the provisions outlined in Articles 78 and onwards are applied, culminating in the newly introduced rule in Article 81. This article clarifies the procedures for placing a lien on real estate encumbered by a mortgage or other security interests. The priority is given to the holder of the security interest during the lien process, and the sale of the property subject to such a lien is prohibited if the secured debt equals or exceeds the value of the property.
The new law also establishes the procedures for public auctions in Articles 82 through 96, where sales are conducted in the presence of the enforcement judge or their appointed representative under the enforcement judge's supervision, following the conditions set forth in Article 83. A significant innovation of the new Judicial Enforcement Law is its modernisation of the process for announcing auction dates, allowing for announcements to be made through electronic means as determined by the enforcement judge. The enforcement judge is also empowered to rule on all objections to the terms of the sale and may postpone, cancel, or amend the sale conditions if deemed necessary, with a requirement to re-advertise. The new law has also abolished the previous possibility for the creditor or debtor to publish notices in newspapers at their own expense.
The Judicial Enforcement Law also introduces changes to the terms of sales, reflecting the provisions of Article 481 of the Civil and Commercial Procedures Law. It abolishes the practice of dividing property into separate lots and adds the requirement for an initial security deposit to be made and other conditions that the enforcement judge deems necessary for participation in the auction, as stipulated in Article 85. Only those who pay the security deposit and meet the conditions set by the enforcement judge are permitted to bid, as confirmed by Article 88. Article 89 further stipulates that if the full purchase price is not deposited as required, the auction will be reopened, and the previous security deposit will be forfeited and seized. Additionally, the enforcement judge is authorised to reduce the initial asking price by an appropriate percentage, but the reduction cannot exceed 25% of the initial price.
Following the completion of the sale, the process of registering the property and transferring ownership commences, as addressed in Articles 91 and 92. Article 93 provides for the clearance of the sold property from liens, mortgages, and other encumbrances. In line with goals of increased digitisation and modernisation, Article 95 permits the conduct of sales and auctions electronically, following the procedures, regulations, and timelines established by the relevant authorities.
New Provisions Regarding Criminal Penalties
The Judicial Enforcement Law recognises the seriousness of deliberately obstructing enforcement, as such actions could undermine its effectiveness. Consequently, a criminal penalty has been introduced under Article 105, which represents an escalation of penalties compared to Article 181 of the Qatar Penal Code (Law No. 11 of 2004). This escalation is evident both in the length of imprisonment, which can now extend up to three years (compared to the two-year limit under the Penal Code), and in the fines, which can reach up to 100,000 Qatari Riyals under the new law (as opposed to the previous cap of 10,000 Qatari Riyals). The new law also permits the reconciliation of such crimes before the initiation of criminal proceedings or during their course and before a final judgment is rendered.
These are the key features of the Judicial Enforcement Law, some of which we have touched upon and discussed. In our view, this law represents a significant step towards strengthening the judicial system, ensuring the effective enforcement of judgments, and serving as a cornerstone in the legislative reforms aimed at meeting societal aspirations and achieving a balance between the rights of the different parties in legal disputes.
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.