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HEALTH BAY INVESTMENT IN HEALTHCARE ENTERPRISES & DEVELOPMENT v DR KAMAL AKKACH [2020] DIFC CFI 087 — Procedural extension via consent order (11 May 2020)

The lawsuit, filed under case number CFI 087/2019, involves a dispute between two corporate entities—Health Bay Investment in Healthcare Enterprises & Development and Anglo Arabian Healthcare Investments—and the defendant, Dr. Kamal Akkach.

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This consent order formalizes a procedural adjustment in the ongoing litigation between Health Bay Investment in Healthcare Enterprises & Development and Anglo Arabian Healthcare Investments against Dr. Kamal Akkach, specifically regarding the deadline for the filing of the Claimants' Reply.

What is the nature of the procedural dispute in CFI 087/2019 between Health Bay Investment in Healthcare Enterprises & Development and Dr. Kamal Akkach?

The lawsuit, filed under case number CFI 087/2019, involves a dispute between two corporate entities—Health Bay Investment in Healthcare Enterprises & Development and Anglo Arabian Healthcare Investments—and the defendant, Dr. Kamal Akkach. While the substantive merits of the underlying healthcare sector dispute remain the primary focus of the litigation, the specific matter addressed by the order dated 11 May 2020 was a procedural request to modify the timeline for the exchange of pleadings.

The parties reached a mutual agreement to adjust the court-mandated deadline for the Claimants to submit their Reply to the Defendant’s pleadings. By seeking a consent order, the parties avoided the need for a contested hearing, demonstrating a cooperative approach to case management. The court formalized this agreement to ensure the litigation proceeded in an orderly fashion. As stipulated in the order:

The time by which the Claimants shall serve and file their Reply shall be extended to 4pm on Monday, 25 May 2020.

The consent order was issued by Deputy Registrar Nour Hineidi of the DIFC Court of First Instance. The order was formally issued on 11 May 2020 at 11:00 am, reflecting the court's administrative oversight in managing the procedural timelines of the case.

What were the positions of the Claimants and Dr. Kamal Akkach regarding the extension of time for the Reply in CFI 087/2019?

The Claimants, Health Bay Investment in Healthcare Enterprises & Development and Anglo Arabian Healthcare Investments, sought an extension of time to finalize and serve their Reply. Given the complexities often inherent in healthcare investment litigation, such requests are common to ensure that the pleadings are comprehensive and accurately reflect the Claimants' position in response to the Defendant's case.

Dr. Kamal Akkach, as the Defendant, consented to this request. By agreeing to the extension, the Defendant effectively waived any objection to the delay, provided that the new deadline of 25 May 2020 was strictly adhered to. This alignment between the parties allowed the Deputy Registrar to issue the order without the necessity of a formal application hearing or the submission of evidence regarding the reasons for the delay, thereby preserving judicial resources.

The court was tasked with determining whether to grant a formal extension of time for the filing of a Reply under the Rules of the DIFC Courts (RDC). The legal question was not one of substantive law or jurisdiction, but rather a matter of procedural compliance. Specifically, the court had to decide if the proposed extension to 25 May 2020 was consistent with the overriding objective of the RDC, which emphasizes the efficient and cost-effective management of cases.

Because the parties were in agreement, the court’s role was to ensure that the extension did not unduly prejudice the court’s schedule or the integrity of the proceedings. The court had to confirm that the request was made in good faith and that the new deadline provided sufficient time for the Claimants to complete their filing while maintaining the momentum of the litigation.

How did Deputy Registrar Nour Hineidi apply the principles of case management to the request in CFI 087/2019?

Deputy Registrar Nour Hineidi exercised the court's inherent power to manage the procedural timeline of the case by confirming the agreement reached between the parties. By issuing a consent order, the court validated the parties' autonomy in managing their own litigation pace, provided such management does not conflict with the court's duty to deal with cases justly.

The reasoning followed the standard practice for consent orders, where the court facilitates the parties' agreement to avoid unnecessary litigation over procedural deadlines. By formalizing the agreement, the court ensured that the new date became a binding deadline, failure to meet which would trigger the standard consequences under the RDC. The court’s decision was guided by the following directive:

The time by which the Claimants shall serve and file their Reply shall be extended to 4pm on Monday, 25 May 2020.

The order was issued pursuant to the court's general powers of case management under the RDC. While the order itself is brief, it relies on the court's authority to extend or shorten the time for compliance with any rule, practice direction, or court order. Under the RDC, parties are encouraged to agree on procedural matters, such as extensions of time, to minimize the need for court intervention.

The Deputy Registrar’s authority to issue such an order is derived from the administrative powers granted to the DIFC Court of First Instance to manage the flow of litigation. This ensures that the court remains the final arbiter of the procedural timeline, even when parties are in agreement, thereby preventing indefinite delays and ensuring that the case moves toward a final resolution.

In the context of CFI 087/2019, the court did not rely on substantive case law precedents, as the matter was a straightforward procedural consent order. However, the court’s approach is consistent with the general principle in DIFC litigation that procedural efficiency is paramount. The court typically respects the parties' consensus on timelines unless such an agreement would cause significant disruption to the court’s calendar or prejudice the administration of justice.

By granting the request, the court signaled that it favors party-led procedural management. This approach aligns with the broader DIFC Court philosophy of encouraging parties to resolve minor procedural disputes without requiring the court to adjudicate on the merits of the delay, provided the requested extension is reasonable and does not jeopardize the trial date.

The court granted the Claimants' request for an extension of time, setting the new deadline for the service and filing of the Reply to 4:00 pm on 25 May 2020. Regarding the costs of the application, the court explicitly stated that there was no order as to costs. This is a standard outcome for consent orders where both parties agree to the procedural adjustment, as neither party is deemed the "prevailing" or "losing" party in the context of the procedural motion.

What are the wider implications for practitioners regarding procedural extensions in DIFC litigation?

This case serves as a reminder to practitioners that the DIFC Court of First Instance is amenable to procedural flexibility when parties act in good faith and reach a consensus. For practitioners, the key takeaway is the importance of proactive communication with opposing counsel when deadlines cannot be met. By securing consent, parties can avoid the costs and potential judicial scrutiny associated with contested applications for extensions.

Practitioners should ensure that any such agreement is clearly documented and submitted to the court in a timely manner to obtain a formal order. This practice not only maintains a professional relationship between the parties but also ensures that the court's records accurately reflect the current status of the litigation, preventing any risk of default or procedural sanctions.

Where can I read the full judgment in Health Bay Investment in Healthcare Enterprises & Development v Dr Kamal Akkach [2020] DIFC CFI 087?

The full text of the consent order can be accessed via the official DIFC Courts website: https://www.difccourts.ae/rules-decisions/judgments-orders/court-first-instance/cfi-0872019-1-health-bay-investment-healthcare-enterprises-development-llc-2-anglo-arabian-healthcare-investments-llc-v-dr-kamal-2

Cases referred to in this judgment:

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

Legislation referenced:

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