DUBAI // Claimants caught up in legal proceedings have called for a change in the court fee system, saying the costs of launching a case are prohibitive.
Yamini Rajesh, a legal consultant at law firm Consultants For Advocacy, said that several of her clients were unable to pursue their civil cases, especially those related to financial fraud, because they were unable to pay the court fees, which can reach up to Dh40,000.
“Court fees are the amount charged by the court, from clients, for the services and works done by court in legal cases and appeal,” Ms Rajesh said.
The costs of these cases vary from emirate to emirate. In Dubai, claimants must pay a deposit of 7.5 per cent of the total claim, or the cap maximum of Dh40,000.
In Abu Dhabi, the fee is 3 per cent of the claim value, while in Ras Al Khaimah, it is 10 per cent or the cap maximum, Dh30,000.
Labour, personal status, endowments and inheritance cases are exempt from these fees.
She also said that high court fees put off smaller investors from filing civil cases.
“The small investors, who invested in the belief of making good business, when they face any kind of repayment issue due to commercial business activity, they have to file civil suit to recover the money,” she said.
When they cannot afford the costs of a case “with no hope of recovering the money, they sell whatever remains of their businesses and go back home”.
One of those affected is Krishna Prasad, who is struggling to pursue his case through the courts because of the costs.
Mr Prasad, 50, an Indian who runs a trading company in Dubai, lost Dh1.1 million when a customer’s cheque bounced. The customer later disappeared.
“For cases like these, one needs at least Dh80,000 to Dh100,000 to pursue the matter in the court, besides the money that has already been lost,” said Mr Prasad, who has already spent Dh40,000 to initiate the proceedings.
He said he had to pay another Dh30,000 as the court fee along with other expenses.
“I am not sure how I will do it. I don’t have enough liquidity. I cannot pull out money from my remaining business and put it in court proceedings,” said Mr Prasad, a father of two, who earns Dh10,000 a month.
He believed the Indian embassy should do more to help out its citizens in such circumstances.
K S Abdul Azeez, an advocate, said there was no option but to pay legal fees. He warned business owners to not chase unrealistic profits because this was usually the cause of legal disputes.
“If you run for unjustified profits and income, then this is bound to happen,” he said.
He also disapproved of the idea of seeking an embassy’s help in paying court fees.
“The embassy cannot interfere in such cases. It’s this country’s law and one has to abide by it,” he said.
Recently, FNC members passed a draft bill introducing dozens of legal fees to dissuade residents from filing spurious lawsuits and reduce costs for personal status cases.
Among the 82 new fees proposed in the draft law, one will be imposed on those convicted in a criminal case. The law includes 121 fees intended to raise federal revenue. Although the draft law includes fees for most judicial procedures, it has reduced fees for others, including those at the personal affairs court.
The winning party can claim expenses, including court fees, from the losing party, Ms Rajesh said.
akhaishgi@thenational.ae
