Payment Orders were originally introduced in the CPC as a fast track route for creditors holding a financial instrument, such as a letter of credit or cheque, to obtain judgment against their debtor for what is a simple and indisputable debt. Payment Orders were rarely issued by the onshore UAE courts. In 2018, Cabinet Resolution No 57 of 2018 (the “2018 Cabinet Resolution”) significantly expanded the scope of application of Payment Orders by extending them to all admitted debts rather than simply those arising out of financial instruments only. The nature of the debt would be evidenced by the creditor filing the relevant loan, contractual agreement, promissory note or cheque and the application made without notice to the debtor (ex parte) and determined by the summary court within three days.
Payment Orders are in some ways similar to the fast track process used by the DIFC Courts for immediate judgment or the AGDM Courts for summary judgment where the court considers that: a) the claimant has real prospect of success on the claim or issue; or b) that the defendant has no real prospect of successfully defending the claim or issue and there is no compelling reason why the case or issue should be disposed of at a trial. Although in the case of DIFC immediate and ADGM summary judgements, the debtor is put on notice of the creditor’s application.