DCC 132/2009

This case involved the validity of a gift deed which had given shares to some heirs but had not been registered. An effective gift deed was valid even if it had not been registered but only took effect when it was registered.

Background

Some Claimants, a number of heirs of shares by virtue of a donation agreement, brought forward proceedings against a company, whose shares had been given to them, and against its partners seeking the courts to declare the validity of the donation process.

The Respondents proceeded with forwarding several substantive and procedural challenges to the donation deed; alleging in part that it had not been properly registered and as such, it should not take effect against them.

Proceedings

Dubai Court of first Instance - Decision No 25/2008

Under decision 25/2008 the Court of First Instance allowed the Claimants' claim.

Dubai Court of Appeal - Appeal No 1032/2008

Under decision 1032/2008, the Court of Appeal supported the Court of First Instance's decision.

The Respondents contested the validity of the donation agreement on many grounds, but the relevant one was the argument that the non-registration of the donation agreement had led to its nullity.