Quick Answer

Ever wondered what you can actually do if someone owes you money in Dubai and flees to India? This blog breaks down everything, from how cross-border debt recovery works under UAE and Indian law, to the legal tools, treaties, and practical steps you can use to get your money back. If you’re a business owner, investor, or professional facing this headache, read on, we’ll make sure you know exactly where you stand and what lies ahead.

 Introduction

Imagine this: you extend a loan or provide services to a business partner in Dubai. The deal is going well, the payments are on track, until suddenly the debtor disappears. The address in the UAE shows no trace, the Dubai company is shuttered, and you soon discover the individual has returned to India and is hiding behind shell companies, proxy directors, or undisclosed assets in Indian jurisdictions. For creditors, this scenario is no longer hypothetical. With increasing business ties between India and the UAE, more Indian creditors find themselves caught in this cross-border debt trap.

The UAE is a major hub for trade, investment, and financial services. Many Indian lenders and service providers deal with entities in Dubai or other Emirates. When a debtor flees from Dubai to India and holds Indian assets, the challenge becomes one of enforcement across jurisdictions. This blog lays out: what legal options you have under UAE law and Indian law; the enforcement tools available; step-by-step recovery strategies; key challenges and practical pitfalls; and why acting fast and strategically makes all the difference.

2. Understanding the Legal Framework: UAE and India

UAE side:

In the UAE, creditors must rely on local civil procedures, execution-of-judgments rules and the possibility of detention of debtors under certain laws. For example, under Federal Decree-Law No. 21 of 2015 (Civil Procedures Law), there are provisions allowing for the arrest of debtors and seizure of assets if certain criteria are met (e.g., Article 319 for detention of the debtor pending proceedings). The key for the creditor is to obtain a final enforceable judgment or decree in the UAE jurisdiction and lay the groundwork for enforcement abroad. Rights of creditors in Dubai include obtaining court judgments, requesting asset freezes, requesting travel bans, and declaring the debtor escaped or insolvent.

India side:

Once the debtor is in India, enforcement proceeds under Indian law. Under the Code of Civil Procedure, 1908 (CPC), sections such as Section 44A allow judgment‐decrees from “reciprocating territories” to be executed as if originally passed by Indian courts. India notified the UAE as a reciprocating territory under Section 44A by Gazette notification in January 2020. This means, UAE judgments can be enforced in Indian courts like district or high courts, subject to certification and due process. Other relevant provisions include Section 13 CPC (decrees of superior courts) and the rules of authentication, translation, and jurisdiction.

Bilateral cooperation:

The India-UAE Agreement on Judicial & Judicial Cooperation in Civil and Commercial Matters (1999) sets a cooperative framework for mutual recognition of judgments, service of legal documents and execution of decrees. After 2020’s notification designating UAE as a reciprocating territory, creditor-friendly pathways have strengthened for enforcement of UAE judgments in India.

What Happens When the Debtor Flew from Dubai to India

When a debtor relocates from Dubai to India, multiple enforcement issues arise. The creditor must identify the debtor’s Indian assets and establish jurisdiction for recovery. Key practical steps:

• Mapping assets in India: property, bank accounts, shares, directorships in Indian companies, and movable assets.
• Obtaining the UAE judgment: Ensure the judgment is final, from a superior court, and the debtor is listed as “absconding” or “escaped” to India.
• India enforcement path: You have options: (a) convert the UAE judgment under Section 44A CPC and file an execution petition in Indian court; (b) file a fresh civil suit in India against the debtor if the UAE judgment is not easily convertible; (c) open insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 if the debtor is a company; (d) use criminal cheating/defalcation proceedings if fraud is involved.
• A recent trend shows Indian lenders increasingly pursuing defaulting debtors who fled from the UAE back to India, particularly when assets were retained in India.

Practical Steps for Recovery: Creditor’s Roadmap

Step 1: Secure a final and enforceable judgment from the UAE court (or any jurisdiction where you extended the credit and obtained a decree).

Step 2: Confirm that judgment was passed by a UAE “superior court,” and check if the debtor has been declared “absconding” or “escaped to India.”

Step 3: In India, under Section 44A CPC, file an Execution Petition in the competent district court. You will need the certified copy of the UAE judgment, a certificate of satisfaction from the foreign court, translations if necessary, and other supporting documents.

Step 4: Move for attachment of Indian assets: bank accounts, property registrations, shares in Indian registered companies, intellectual property rights, etc. Use Indian courts’ powers of execution under CPC, this may include sale of attached assets to satisfy the decree.

Step 5: If the debtor is a company, consider Insolvency and Bankruptcy Code, 2016 (IBC) proceedings. A creditor may initiate Corporate Insolvency Resolution Process (CIRP) if the debtor owes more than the threshold.

Step 6: Explore the criminal route, where appropriate: Indian Penal Code (IPC)/Bharatiya Nyaya Sanhita(BNS) for cheating or misappropriation, or UAE detention laws. Consider travel bans or extradition if fraud is involved.

Checklist/documentation: Final UAE decree; certificate of satisfaction; debtor’s Indian and UAE asset details; Indian loan/credit agreement; registration of mortgage or guarantee; translations and apostilles; vendor and banker contacts.

Key Legal Provisions & Authorities to Cite

• India

Ø Section 44A CPC (1908): Execution of decrees passed by courts of reciprocating territories, important since UAE is notified as reciprocating.

Ø Section 13 CPC: Enforcement of decrees passed by Indian superior courts, useful analogously when asset attachment arises in India.

• UAE

Ø Federal Decree-Law No. 21 of 2015 (Civil Procedures Law): Sets out enforcement procedures, debtor detention possibilities etc.

• Bilateral Treaty: India-UAE “Agreement on Judicial & Judicial Cooperation in Civil and Commercial Matters” (1999).
• Notification: Indian Ministry of Law & Justice gazette notification (17 Jan 2020) declaring UAE a reciprocating territory under Section 44A CPC.

Challenges & Practical Pitfalls

Creditors face several major challenges:

• Debtor may hide assets through proxy companies, shell entities or foreign trusts in India, making tracing difficult.
• Enforcement costs can be high and time-consuming, especially if Indian courts require authentication, translations or challenge jurisdiction.
• Debtor may quickly dissipate assets before execution, moving funds, converting assets or transferring property ownership.
• Not all UAE judgments may qualify for direct enforcement; some may not satisfy Indian court criteria for clarity, finality, or reciprocity.
• Corporate veil issues or ownership in complex structures may hamper asset attachment.
• Deadlines and procedural bars: Indian execution under CPC generally requires initiation before limitation periods expire; delays can reduce chances of success.

Why Acting Fast Matters: Strategic Tips

Speed and early action matter because:

• Early asset freeze or attachment prevents dissipation of debtor assets.
• Even before full Indian execution, suing in India (if jurisdiction allows) may yield quicker relief if Indian assets exist.
• Drafting the original credit/loan agreement with jurisdiction clauses (UAE and India), specifying Indian assets, Indian guarantee, or arbitration clause can strengthen creditor position.
• Due diligence before loan disbursement, review debtor’s Indian connections, asset holdings, corporate structure, can prevent headaches later.
• Engage cross-border enforcement specialists or law firms with experience in UAE-India cases.

Recent Developments & What’s Next

• Since India declared the UAE as a reciprocating territory in 2020, India is no longer a safe haven for debtors fleeing from the UAE. Lenders increasingly use Indian courts to execute UAE judgments.
• The UAE has reformed its debtor-enforcement laws, giving courts stronger powers to detain and freeze fleeing debtors under Article 319 CPL.
• Looking ahead: Expect more bilateral treaties, digitalized enforcement frameworks, asset-tracing technologies and closer India-UAE cooperation on cross-border default recovery.
• For creditors, this means updating loan documents: ensure dual jurisdiction (UAE/India), include Indian asset clause, require Indian corporate guarantee, and opt for arbitration options when possible.

Conclusion

When a debtor escapes from Dubai to India, recovering your money is not impossible—it simply demands precision, patience, and a well-planned legal strategy that bridges both jurisdictions. By combining strong documentation such as loan agreements or court decrees, timely enforcement actions like asset attachment or insolvency petitions, and swift legal coordination between UAE and Indian systems, creditors can significantly increase their chances of recovery.

Cross-border debt recovery is a complex process, but with expert guidance, it can be navigated effectively. If you’re facing a similar situation or need assistance with drafting cross-border contracts, executing UAE judgments in India, or tracing hidden assets, SolvLegal can help. Their team’s experience in international enforcement and commercial recovery provides the practical and strategic support creditors need to turn legal rights into real-world results.

FAQs

1.     Can I recover money from someone who has fled from UAE to India?

Yes. You can enforce a UAE court judgment in India if the UAE is a reciprocating territory (which it is) and Indian assets of the debtor are available.

2.     Does a UAE court judgment have to be converted into an Indian judgment?

Under Section 44A CPC, the UAE judgment can be treated as an Indian decree for execution, provided it meets Indian court’s conditions for recognition.

3.     Which assets of the debtor in India can I attach?

Bank accounts, immovable property, shares or directorships in Indian companies, vehicles, and movable assets may be attached under Indian execution laws.

4.     Can I initiate criminal proceedings against a debtor in India for debt taken in UAE?

It depends. If the loan default involves fraud, cheating or breach of trust under the BNS, you may proceed with a criminal case. Otherwise, recovery is primarily civil.

5.     What if the debtor has no assets in India and returned to UAE?

Recovery becomes more difficult. You may need to enforce the UAE judgment in the UAE, or consider international asset-tracing and enforcement mechanisms under bilateral treaties or arbitration awards.

Related articles:

1. Cross Border Contracts In India.

About the author: Kunal Singh is a second-year B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar.

Contributor: Gaurav Saxena is the founder of SolvLegal, where he brings together dual expertise in engineering and law to guide clients through complex corporate and compliance matters. With a strong grounding in the law of contracts, corporate law, intellectual property, IT law and data privacy, he works with startups and established businesses alike to structure agreements, advise on governance and safeguard innovation. LinkedIn

Disclaimer

The information provided in this article is for general educational purposes and does not constitute a legal advice. Readers are encouraged to seek professional counsel before acting on any information herein. SolvLegal and the author disclaim any liability arising from reliance on this content.