Insolvency · Supreme Court of Oman

Negative asset searches may establish insolvency in enforcement

Responses from competent authorities showing no assets may establish the debtor’s insolvency under Article 425(d), precluding coercive imprisonment.

CourtSupreme Court of Oman
DivisionCommercial Department
Challenge№ 66/2021
Session dateOctober 26, 2021
Material formatPublished legal principle

01

Legal issue

Responses from competent authorities showing no assets may establish the debtor’s insolvency under Article 425(d), precluding coercive imprisonment.

02

Published principle

The Arabic text published by the Supreme Court is the primary source. The English translation was published by the Technical Bureau; Russian and Chinese are unofficial Smart Global Capital editorial translations.

This is a published legal principle—an extract selected by the Supreme Court of Oman Technical Bureau—not the full text of the judgment.

Where the court follows the prescribed procedures to investigate the judgment debtor’s assets and the competent authorities report that none exist, those responses constitute proof of insolvency under Article 425(d). Once insolvency is sufficiently established, the debtor may not be coerced by imprisonment and a request for imprisonment has no legal basis. Temporary closure of the execution file does not prejudice the creditor, who may notify the execution judge and resume execution if assets are discovered.

03

Applicability

The principle concerns imprisonment as an enforcement measure. It is not a bankruptcy adjudication, does not discharge the debt and does not prevent later execution against newly discovered assets.

04

Related instruments

  • Civil and Commercial Procedures Law, Article 425(d)

05

Official source

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