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R.E. LEE INTERNATIONAL v IMRAN KHAN [2024] DIFC CA 013 — Consent order regarding document production deadlines (01 November 2024)

The dispute concerns the ongoing litigation between R.E. LEE INTERNATIONAL (MIDDLE EAST) LIMITED and R.E. LEE INTERNATIONAL (CAYMAN) LIMITED (the Claimants) and IMRAN KHAN (the Defendant).

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This consent order formalizes the procedural adjustment of document production timelines in the Court of Appeal following the successful negotiation of a settlement offer between the parties.

The dispute concerns the ongoing litigation between R.E. LEE INTERNATIONAL (MIDDLE EAST) LIMITED and R.E. LEE INTERNATIONAL (CAYMAN) LIMITED (the Claimants) and IMRAN KHAN (the Defendant). The matter reached a procedural juncture regarding the production of documents previously mandated by the Court. Following the issuance of a prior order on 1 October 2024, which required the Claimants to produce specific categories of documents, the parties engaged in settlement negotiations.

The core of the current order is the adjustment of the production deadline following the Defendant's acceptance of a Part 32 offer. As noted in the official record:

UPON the Claimants Part 32 offer dated 24 October 2024 (the “Claimants’ P32 Offer To Settle the Claim”) to settle their claims (the “Claim”) AND UPON the Defendant accepting the Claimants’ P32 Offer To Settle the Claim on 29 October 2024.

This acceptance effectively shifted the procedural focus from active litigation to the finalization of document disclosure obligations under the agreed terms. The full details of the order can be accessed at https://www.difccourts.ae/rules-decisions/judgments-orders/court-appeal/ca-0132024-1-re-lee-international-middle-east-limited-2-re-lee-international-cayman-limited-v-imran-khan.

The consent order was issued by Assistant Registrar Delvin Sumo. The order was formally processed and issued on 1 November 2024 at 10:00 am within the DIFC Court of Appeal, reflecting the court's role in ratifying the procedural agreement reached between the Claimants and the Defendant.

The parties utilized the Part 32 offer mechanism, a cornerstone of the Rules of the DIFC Courts (RDC) designed to encourage settlement. The Claimants, R.E. LEE INTERNATIONAL (MIDDLE EAST) LIMITED and R.E. LEE INTERNATIONAL (CAYMAN) LIMITED, extended a formal Part 32 offer to the Defendant, Imran Khan, on 24 October 2024.

The Defendant’s subsequent acceptance of this offer on 29 October 2024 served as the catalyst for the current order. By accepting the offer, the parties effectively bypassed the need for further contested litigation regarding the merits of the claim, opting instead to consolidate their remaining procedural obligations—specifically the production of documents—into a single, court-sanctioned timeline.

What was the precise doctrinal issue the Court had to address regarding the amendment of the 1 October 2024 Order?

The Court was tasked with determining whether to grant a variation to a previously issued procedural order based on the mutual consent of the parties. The doctrinal issue centered on the court's discretion to amend timelines for document production under the RDC when the underlying dispute has been settled via a Part 32 offer. The court had to ensure that the amendment—changing a relative deadline of "30 days from this Consent Order" to a fixed date of "5 November 2024"—was consistent with the parties' settlement agreement and did not prejudice the integrity of the court's case management.

Assistant Registrar Delvin Sumo exercised the court's authority to give effect to the agreement reached between the parties. By formalizing the request, the court acknowledged that the parties had reached a consensus on the final steps of the litigation. The reasoning followed the standard practice of the DIFC Courts to facilitate the efficient conclusion of proceedings once a settlement is reached. As stated in the order:

IT IS HEREBY ORDERED BY CONSENT THAT: 1. By consent, the parties agree that the phrase “within 30 days from this Consent Order” at paragraph 4 of the Order shall be amended as follows: “by 4pm (GST) on 5 November 2024”.

This approach underscores the court's reliance on the parties' ability to manage their own procedural timelines once the substantive dispute is resolved through a Part 32 offer.

Which specific Rules of the DIFC Courts (RDC) govern the use of Part 32 offers in the DIFC?

The primary authority governing this process is Part 32 of the Rules of the DIFC Courts (RDC), which provides the framework for offers to settle. These rules are designed to incentivize parties to settle disputes by providing clear consequences for the acceptance or rejection of such offers. While the order itself focuses on the procedural amendment, the underlying validity of the settlement rests on the compliance with RDC Part 32 requirements regarding the form and timing of the offer and its acceptance.

How does the RDC Part 32 framework influence the court's approach to costs in CA 013/2024?

In this instance, the court’s approach to costs was explicitly defined by the parties' agreement. The order states: "There shall be no order as to costs." This reflects the standard practice where parties, having reached a settlement, agree to bear their own costs, thereby avoiding the need for the court to conduct a separate assessment of the litigation's success or the reasonableness of the parties' conduct under the RDC cost-shifting provisions.

What was the final disposition and the specific relief granted by the Court of Appeal in this matter?

The Court of Appeal granted the consent order, effectively modifying the previous order dated 1 October 2024. The specific relief granted was the amendment of the deadline for the Claimants' document production. The new deadline was set for 5 November 2024 at 4:00 pm (GST). Furthermore, the court ordered that there be no order as to costs, finalizing the procedural requirements for the parties to conclude the matter in accordance with their settlement.

Practitioners should note that the DIFC Courts prioritize the finality of settlements reached through Part 32 offers. When a settlement is reached, the court is highly amenable to consent orders that adjust procedural timelines to align with the settlement terms. The case demonstrates that even after a court has issued a production order, parties retain the flexibility to negotiate the timing of those obligations. Practitioners must ensure that any such agreement is clearly documented and presented to the court in a format that allows for a swift, uncontested order, thereby saving judicial time and client resources.

Where can I read the full judgment in R.E. LEE INTERNATIONAL v IMRAN KHAN [2024] DIFC CA 013?

The full text of the consent order can be accessed via the DIFC Courts website: https://www.difccourts.ae/rules-decisions/judgments-orders/court-appeal/ca-0132024-1-re-lee-international-middle-east-limited-2-re-lee-international-cayman-limited-v-imran-khan. The document is also available on the Litt database at https://littdb.sfo2.cdn.digitaloceanspaces.com/litt/AE/DIFC/judgments/court-appeal/DIFC_COA_CA_013_2024_1_R_E_LEE_International_Middle_East_Limited_2_R_E_LEE_Intern_20241101.txt.

Cases referred to in this judgment:

Case Citation How used
N/A N/A N/A

Legislation referenced:

  • Rules of the DIFC Courts (RDC) Part 32
Written by Sushant Shukla
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