April 26, 2023 COURT OF FIRST INSTANCE - ORDERS
Claim No. CFI 100/2021
THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS
IN THE COURT OF FIRST INSTANCE
BETWEEN
GHAM 2 LIMITED
Claimant
and
(1) MR AJAY BHATIA
(2) TIYA HOLDINGS LIMITED
(3) SOL INTERNATIONAL PROPERTIES LIMITED
Defendants
ORDER WITH REASONS OF H.E. JUSTICE MAHA AL MHEIRI
UPON the Order of Assistant Registrar Hayley Norton dated 7 April 2023 discontinuing the Claim (the “Order”)
AND UPON reviewing the Defendants’ Application No CFI-100-2021/1 dated 12 April 2023 seeking a de novo review of the Order (the “Application”)
AND UPON reviewing the Claimant’s response to the Application dated 17 April 2023
AND UPON reviewing the DIFC Courts Practice Direction No .5 of 2014 - DIFC Courts’ Costs Regime
AND UPON reviewing the DIFC Courts Practice Direction No. 3 of 2015 – Review of DIFC Courts Officer and Registrar Decisions
AND PURSUANT TO Part 34 of the Rules of the DIFC Courts (“RDC”)
IT IS HEREBY ORDERED THAT:
1. The Application is granted.
2. Paragraph 2 of the Order shall be amended to read as follows:
“The Claimant shall pay the Defendants’ costs in relation to the proceedings and the Application, to be assessed by the Registrar, if not agreed.”
Issued by:
Hayley Norton
Assistant Registrar
Date of Issue: 26 April 2023
At: 4pm
SCHEDULE OF REASONS
Summary
1. On 12 April 2023, the Defendants filed an application setting out their request for a de novo review of the Order of Assistant Registrar Hayley Norton discontinuing the Claim, dated 7 April 2023 (the “Order”) (the “Application”).
Procedural History
2. The procedural timeline of the events in this matter to date is shown below, in order to accurately assess the work undertaken by the parties and the costs incurred:
(a) 21 November 2021: the Claimant filed its Claim Form.
(b) 2 January 2022: the Claimant prepared and filed its Particulars of Claim.
(c) 30 January 2022: the Defendants submitted their Statement of Defence.
(d) From February 2022 to November 2022: for a period of 10 months, no work or progress was made by either party and the Claimant did not file a reply to the Statement of Defence during that period.
(e) 21 December 2022: the Defendants filed a notice of change of legal representative.
(f) 7 April 2023: the Order was issued by the Court.
3. On 6 April 2023, the Claimant filed a Notice of Discontinuance with the Court, and thereafter the Order discontinuing the Claim was issued on 7 April 2023.
4. The Claimant submits that the work performed by the Defendants in relation to this matter is minimal and is limited to correspondence with the Registry.
5. On 12 April 2023, the Defendants filed the Application requesting the following:
(a) Paragraph 2 of the Assistant Registrar's Order to be retracted.
(b) An order that the Respondent shall pay within 14 days the Applicants’ costs of CFI-100-2021, assessed in the sum of AED 366,074.63.
(c) An order that the Respondent shall pay within 14 days the Applicants’ costs of the Application.
6. In response to the Application, the Claimant submits that the Application should be rejected in its entirety, and that the Defendants’ costs should be rejected. In addition, the Claimant’s Costs in the amount of USD 8,490 in respect of the Application shall be awarded.
7. The required procedure under RDC Part 34 in relation to filing a Notice of Discontinuance states the following:
“34.15
Unless the Court orders otherwise, a claimant who discontinues a claim is liable for the defendant’s costs incurred up to and on the date on which notice of the discontinuance was served on him or his legal representative . If proceedings are only partly discontinued:
(1) the claimant is liable for costs relating only to the part of the proceedings which he is discontinuing; and
(2) unless the Court orders otherwise, the costs which the claimant is liable to pay must not be assessed until the conclusion of the rest of the proceedings.
…
34.17
Rule 34.18 applies where:
(1) proceedings are partly discontinued;
(2) a claimant is liable to pay costs under Rule 34.15; and
(3) the claimant fails to pay those costs within 14 days of:
(a) the date on which the parties agreed the sum payable by the claimant; or
(b) the date on which the Court ordered the costs to be paid.
34.18
Where this Rule applies, the Court may stay the remainder of the proceedings until the claimant pays the whole of the costs which he is liable to pay under Rule 34.15.”
8. Pursuant to RDC 34.15, I find that paragraph 2 of the Order shall be amended to read as follows:
“The Claimant shall pay the Defendants’ costs of the proceedings and the Application to be assessed by the Registrar, if not agreed.”
