News

In a recent ruling by the Dubai Court of Cassation, the General Assembly of the Dubai Court of Cassation decided to overturn a legal principle established by the Court of Cassation in previous rulings and has been in effect regarding the fact that the decision of the Dubai International Arbitration Centre to close the case file for non-payment of arbitration costs results in the fall of the arbitration clause due to the expiration of the purpose of arbitration by the impossibility of continuing the proceedings and then the defendant has the right to resort to the judiciary to claim what he claims, as it concluded in its session held on October 24, 2023 in Case No. 1 of 2023.

The General Assembly of the Dubai Court of Cassation decided by a unanimous vote to overturn what the Court has followed in previous rulings from the fall of the arbitration clause upon issuing a decision of the Dubai International Arbitration Centre to close the case file for non-payment of arbitration costs and to adopt the principle that the decision of not proceeding in the arbitration file and closing the case file for non-payment of arbitration costs as long as a final judgment has not been issued does not result in the fall of the arbitration clause and does not imply a waiver of the arbitration clause, which does not prevent either party from re-submitting the case to the Centre and it is permissible for either party to adhere to the arbitration clause before the courts.