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SHIRAZ MAHMOOD v STANDARD CHARTERED BANK [2024] DIFC CFI 044 — Procedural extension for statement of costs (12 November 2024)

The dispute concerns the administrative timeline for the recovery of legal costs following the conclusion of the substantive proceedings in CFI 044/2021. Following the judgment handed down by Chief Justice Wayne Martin on 1 October 2024, the parties entered into a series of procedural agreements to…

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This consent order formalizes a procedural adjustment to the timeline for the filing and service of the Defendant’s statement of costs following the substantive judgment delivered by Chief Justice Wayne Martin.

What is the specific procedural dispute between Shiraz Mahmood and Standard Chartered Bank regarding the filing of costs in CFI 044/2021?

The dispute concerns the administrative timeline for the recovery of legal costs following the conclusion of the substantive proceedings in CFI 044/2021. Following the judgment handed down by Chief Justice Wayne Martin on 1 October 2024, the parties entered into a series of procedural agreements to manage the post-judgment assessment of costs. This specific order addresses the Defendant’s requirement to quantify its claim for costs through a formal statement.

The litigation, which has seen multiple procedural iterations, including SHIRAZ MAHMOOD v STANDARD CHARTERED BANK DIFC [2021] DIFC CFI 044 — Procedural extension of time via consent order (06 October 2021), SHIRAZ MAHMOOD v STANDARD CHARTERED BANK [2021] DIFC CFI 044 — Procedural extension for immediate judgment response (21 November 2021), and SHIRAZ MAHMOOD v STANDARD CHARTERED BANK [2021] DIFC CFI 044 — Procedural variation of immediate judgment timelines (12 December 2021), has now reached the final stage of cost recovery. The current order serves to amend a previous consent order dated 21 October 2024, ensuring that the Defendant has sufficient time to prepare its documentation.

The order was issued by Assistant Registrar Hayley Norton, acting under the authority of the Court of First Instance, following the substantive judgment previously delivered by Chief Justice Wayne Martin on 1 October 2024.

What were the positions of Shiraz Mahmood and Standard Chartered Bank regarding the extension of the costs filing deadline?

The parties reached a mutual agreement to extend the deadline for the Defendant to file and serve its statement of costs. By opting for a consent order, both the Claimant and the Defendant avoided the need for a contested hearing, demonstrating a collaborative approach to the procedural finalization of the case. The Defendant sought additional time to ensure the accuracy and completeness of its statement of costs, while the Claimant consented to this extension, thereby preventing unnecessary litigation regarding procedural compliance.

The court was required to determine whether it should grant a variation to the procedural timeline established in the previous Consent Order dated 21 October 2024. The legal issue was not one of substantive liability, but rather a procedural application under the Rules of the DIFC Courts (RDC) to amend a deadline for the service of a statement of costs. The court had to ensure that the amendment remained consistent with the overarching objective of the RDC to deal with cases justly and efficiently.

How did the Court of First Instance apply its discretionary power to amend the procedural timeline for Standard Chartered Bank?

The Court exercised its inherent case management powers to facilitate the parties' agreement. By formalizing the request as a consent order, the Court acknowledged the parties' autonomy in managing the final stages of the litigation. The reasoning was straightforward: the parties had reached a consensus, and the extension did not prejudice the administration of justice. The order specifically modified the previous deadline to provide the Defendant with a clear, enforceable date.

“The Defendant shall file and serve a copy of its statement of costs by no later than 4pm on 3 December 2024.”

Which specific Rules of the DIFC Courts (RDC) govern the filing of statements of costs in the Court of First Instance?

The filing of statements of costs is governed by Part 38 of the RDC, which outlines the procedure for the assessment of costs. While this order specifically references the amendment of a prior consent order, the underlying obligation to file a statement of costs is derived from the court's power to award costs under RDC 38.1 and the subsequent requirement for the receiving party to provide a detailed breakdown of those costs to the paying party.

How does the current order interact with the previous judgment of Chief Justice Wayne Martin?

The current order is a procedural derivative of the substantive judgment delivered by Chief Justice Wayne Martin on 1 October 2024. In the DIFC Courts, once a judgment on the merits is delivered, the court retains jurisdiction to oversee the assessment of costs. The current order ensures that the procedural mechanism for cost recovery—specifically the filing of the statement of costs—remains aligned with the court's final determination on the liability for costs.

What is the final disposition and the specific deadline set for the Defendant in this order?

The Court granted the application by consent, ordering that the Defendant must file and serve its statement of costs no later than 4pm on 3 December 2024. All other provisions of the previous Consent Order dated 21 October 2024 remain in full force and effect. No further costs were awarded in relation to this specific procedural application, as it was resolved by consent.

What are the practical takeaways for practitioners managing post-judgment costs in the DIFC?

Practitioners should note that the DIFC Courts maintain a strict approach to procedural deadlines, even when those deadlines relate to the ministerial task of filing statements of costs. While the court is willing to accommodate extensions via consent orders, these must be formalized and issued by the Registrar to be binding. Failure to adhere to the amended deadline of 3 December 2024 could result in the court exercising its powers under RDC 38 to limit or disallow costs, emphasizing the importance of timely compliance even in the final stages of a dispute.

Where can I read the full judgment in MR SHIRAZ MAHMOOD v STANDARD CHARTERED BANK DIFC [2024] DIFC CFI 044?

The full text of the order can be accessed via the DIFC Courts website: https://www.difccourts.ae/rules-decisions/judgments-orders/court-first-instance/cfi-0442021-mr-shiraz-mahmood-v-standard-chartered-bank-difc-1 or via the CDN link: https://littdb.sfo2.cdn.digitaloceanspaces.com/litt/AE/DIFC/judgments/court-first-instance/DIFC_CFI-044-2021_20241112.txt

Cases referred to in this judgment:

Case Citation How used
Shiraz Mahmood v Standard Chartered Bank [2021] DIFC CFI 044 Substantive proceedings

Legislation referenced:

  • Rules of the DIFC Courts (RDC), Part 38 (Costs)
Written by Sushant Shukla
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