CFI 021/2025 DIFC Investments Ltd v DIFC Registrar of Companies

March 19, 2025 court of first instance - Orders

Claim No: CFI 021/2025

THE DUBAI INTERNATIONAL FINANCIAL CENTRE COURTS

IN THE COURT OF FIRST INSTANCE

BETWEEN

DIFC INVESTMENTS LTD

Claimant/Applicant

and

DIFC REGISTRAR OF COMPANIES

Defendant/Respondent

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ORDER WITH REASONS OF H.E. JUSTICE MAHA AL MHEIRI

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AND UPON the Claimant's Part 8 Claim Form dated 28 February 2025 seeking the restoration of StepIn Lifestyle Fashion Ltd to the DIFC Public Register, as maintained by the Registrar of Companies (the “Restoration Application”)

AND UPON the Respondent’s acknowledgment of Service dated 10 March 2025

IT IS HEREBY ORDERED AND DIRECTED THAT:

1. The Restoration Application is accepted.

2. STEPIN LIFESTYLE FASHION LTD is restored to the Public Register.

3. DIFC Investments LTD is directed to:

a) deliver a copy of this Order to the Registrar of Companies within 14 days; and

b) forthwith inform the Court of such delivery by letter to the Registry.

4. There shall be no order as to costs

Issued by:
Delvin Sumo
Assistant Registrar
Date of issue: 19 March 2025
At: 3pm

SCHEDULE OF REASONS

1. Between July 2021 to January 2022, the Claimant and StepIn Lifestyle Fashion Ltd (“StepIn”) entered into twelve (12) lease agreements whereunder the Defendant agreed to lease from the Claimant various units located in the Gate Avenue, DIFC (the “Premises”) for a lease period of 5 years, 3 months and 15 calendar days each (the “Lease Agreements”).

2. On 11 July 2024, the Claimant commenced proceedings against the StepIn in Case No. CFI-046-2024 seeking relief in respect of its breaches of the terms of eleven of the Lease Agreements.

3. On 4 July 2024, the DIFC Registrar of Companies (the “Registrar”) served notice on StepIn for it to be struck off the Public Register. The Notice provided StepIn an opportunity to raise its objections to the Registrar’s decision to strike off the Public Register, within three (3) months from the date of issuance of the Notice, which Stepin failed to provide.

4. Following the StepIn’s failure to acknowledge service of the Claim in Case No. CFI-046-2024 or to file a defence within the prescribed timeframe, the Claimant filed a request for default judgment, which was granted by way of the Order of Judicial Officer Maitha AlShehhi dated 23 August 2024.

5. On 2 October 2024, StepIn Lifestyle Fashion Ltd was struck off the Public Register by the Defendant. The Defendant did so in accordance with his powers under Article 32(1) of the Operating Law DIFC Law No.7 of 2018 (“Operating Law”), in light of StepIn’s failure to renew its commercial license for a period longer than six (6) months and to register a valid lease with the DIFC.

6. On 18 October 2024, the Claimant filed Enforcement Proceedings, a Part 50 Application pursuant to Rule 50.2(2) of the Rules of the DIFC Courts (the “RDC”). On 18 December 2024, the Registry issued the Order of H.E. Justice Maha Al Mheiri for Mr. Birendra Tiwari, Director of Stepin Lifestyle Fashion Ltd, to produce documents and attend Court for questioning at a Part 50 Examination Hearing.

7. The Claimant seeks to restore StepIn to the Public Register pursuant to:

a) Article 33(1)(b) of the Operating Law in its capacity as a person having an interest in any property that benefited by obligations owed by Stepin to the Claimant, pursuant to the terms of the Lease Agreements; and

b) Article 33(1)(f) of the Operating Law, in its capacity as a judgment creditor in respect of the Default Judgment, which was issued prior to Stepin’s strike off from the