The Importance of Serving an Executive Bond – Performance Order – and its Impact on Compulsory Execution Procedures

Publish : 10 Mar 2025

Serving the executive bond is considered one of the essential procedures preceding the compulsory execution process. It is the means that ensures the debtor is officially informed about the existence of an enforceable bond against them. No judgment or court decision can be enforced unless it is supported by an executive bond, according to the criteria specified in the law.

 

According to the Civil Procedure Law, the execution procedure can only commence after the executive bond has been legally and formally served to the debtor. This process is subject to specific rules and procedures designed to protect both the debtor's and creditor's rights, ensuring procedural justice.

 

What is an Executive Bond

 

An executive bond is a legal document that proves a judgment has become final and executable, granting its holder the right to initiate compulsory execution procedures directly. It obliges the debtor to perform the imposed obligation (whether financial or any other agreed-upon). According to Article 212 of the UAE Civil Procedure Law, the executive bond is considered valid if it meets three essential conditions: the right is actual and existent, its amount is determined, and it is due for performance.

 

The Principle of Compulsory Execution via Executive Bond

 

Compulsory execution is an important means of securing the creditor's rights and cannot proceed without the existence of an executive bond, which is governed by specific legal requirements and conditions.

 

Conditions of the Executive Bond:

 

According to Article 212 of the UAE Civil Procedure Law, several conditions must be met for the executive bond to be valid for compulsory execution. These conditions are:

  1. Actual Existence: The right stipulated in the bond must be existent and verified.
  2. Determined Amount: The debt must be specified by a certain amount, and the obligation must be clear and unequivocal.
  3. Due for Performance: Execution is only permitted if the obligation or debt is due for payment at the time of execution.

 

Types of Executive Bonds:

 

Article 212 of the UAE Civil Procedure Law identifies the types of executive bonds as follows:

  1. Court Judgments and Orders: Include final judgments and orders issued by the courts that are executable once they are issued.
  2. Notarized Documents: Include contracts and agreements that are notarized according to specific laws related to notarization.
  3. Settlement Minutes: Those ratified by the court.
  4. Documents Recognized by Law as Having Executive Character: Such as promissory notes and bills of exchange.

 

According to Article 223, none of these executive bonds can be enforced until the debtor has been officially served with the bond.

 

It is noteworthy that enforcement cannot take place—except in cases specifically excluded by law—unless the executive bond is accompanied by an execution clause reading as follows:

"The authorities and relevant parties must proceed with the execution of this bond and take the necessary measures. They must assist in its enforcement, even if it requires compulsory execution, upon request."

 

The Importance of Serving the Executive Bond

 

The importance of serving the executive bond lies in safeguarding public interests. Through this procedure, the rights and interests of both the debtor and the creditor are protected. Officially notifying the debtor of the commencement of enforcement proceedings allows them the opportunity to take appropriate legal measures. On the other hand, it ensures that the creditor can recover their debt.

 

According to Article 233 of the Civil Procedure Law, the enforcement applicant must submit a request containing details of the executive bond and the required procedures. The debtor must be formally served with the enforcement notice and granted the opportunity to settle the debt or object within the legally prescribed timeframe.

 

Key Objectives of Serving the Executive Bond

 

  1. Ensuring Actual Awareness: Serving the executive bond guarantees that the debtor is officially informed of their obligation.
  2. Procedural Justice: It provides the debtor with an opportunity to object or settle the debt within the legally defined framework.
  3. Protecting the Creditor’s Rights: These procedures allow the creditor to collect their debt in a legal and organized manner.

 

It is evident that these objectives serve both the creditor and the debtor simultaneously.

 

Legal Procedures for Serving the Executive Bond

 

The process of serving the executive bond follows structured legal procedures, which include:

  1. First Stage – Preparing the Notice: The enforcement judge issues a notice containing details of the executive bond and the enforcement demands.
  2. Second Stage – Notifying the Debtor: The debtor is served through legally recognized methods.
  3. Third Stage – Specifying a Timeframe: The debtor must be granted a legally defined period to either settle the debt or object to the executive bond.

 

The Duration for Serving the Executive Bond in a Performance Order

 

Article 146 of the UAE Civil Procedure Law stipulates that the executive bond must be served within three months from its issuance. If it is not served within this period, the performance order or judicial ruling is deemed null and void from the date of issuance.

 

(Nullification of the Performance Order Due to Failure to Serve the Executive Bond Within Three Months of Issuance)

 

This means that if a performance order or an enforceable judicial ruling is issued, the debtor must be served with the executive bond (i.e., notified of the ruling) within the legally prescribed period of three months. If the executive bond is not served within this timeframe, the order for performance or judgment becomes invalid or void.

 

Legal Effects of Serving the Executive Bond

 

Once the executive bond is served, several legal consequences arise:

  1. Commencement of Enforcement Proceedings: Enforcement measures begin if the debtor does not respond within the specified period.
  2. Protective Measures: The enforcement judge may take precautionary actions, such as seizing assets, funds, or bank accounts, in accordance with Article 143 of the Civil Procedure Law.
  3. Objection to the Executive Bond: The debtor has the right to challenge the executive bond before the enforcement judge if there is a legal ground for objection, such as forgery or full payment of the debt.

 

Conclusion

 

Serving the executive bond is a fundamental procedure that ensures the enforcement of judicial rulings and final decisions. It requires strict adherence to the legal procedures established by law to safeguard the rights of both the debtor and the creditor. A proper understanding of the rules governing the executive bond—from documentation to the procedures of notification and enforcement—is essential for upholding procedural justice and preventing harm to any party involved in the dispute. By complying with these procedures, a balance is maintained between the debtor’s right to defend themselves and the creditor’s right to legally recover their debt.

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