Seizure of Assets of the Judgment Debtor

Seizure of Assets of the Judgment Debtor

Among matters concerning property and assets, individuals are frequently confronted with issues arising from non-payment of debts or from damages. In practice, a person may be entitled to receive a sum of money that should have been paid to them and, as a result, may initiate legal proceedings against the opposing party.

However, an important question arises as to what guarantees exist for the actual payment of such amounts, even after a court issues a judgment in favor of the claimant, and what measures can be taken to prevent the violation of the claimant’s rights. The Law on Enforcement of Judgments addresses these concerns and provides for the seizure of assets as a legal mechanism to prevent the loss of rights.

Legal Basis for the Seizure of Assets in the Iranian Legal System

The seizure of assets of the judgment debtor refers to the attachment of the property and assets belonging to a person against whom a court judgment has been issued.

Precautionary Seizure

The issuance and enforcement of a judgment are subject to certain conditions, one of which is the issuance of an enforcement order and its formal notification to the judgment debtor. Pursuant to Article 34 of the Law on Enforcement of Civil Judgments, the debtor is required to comply with the enforcement order within ten days from the date of notification.

During this ten-day period, there is a possibility that the judgment debtor may conceal, transfer, or dispose of their assets in order to evade enforcement. For this reason, in accordance with Note to Article 35 of the Law on Enforcement of Civil Judgments, the judgment creditor is entitled to identify and introduce the assets of the judgment debtor for seizure within this ten-day period. This type of seizure is referred to as a precautionary seizure or provisional seizure.

Enforcement Seizure

As noted above, the judgment debtor is obliged to comply with the enforcement order within the prescribed period following notification. In certain cases, the debtor may fail to execute the judgment within this period and may also fail to perform any legally accepted alternative obligations.

In such circumstances, the judgment creditor may request the seizure of the judgment debtor’s assets up to the amount awarded in the judgment. In this case, the seizure of assets is initiated without delay and is referred to as an enforcement seizure.

Procedure for the Seizure of the Judgment Debtor’s Assets

The rules governing the seizure of assets under the Law on Enforcement of Civil Judgments differ depending on whether the property is movable or immovable. Accordingly, it is necessary to distinguish between movable and immovable property.

• Movable Property: Property that can be transferred without causing damage to the property itself or to its place of location is considered movable property, such as books, clothing, and similar items.
• Immovable Property: Property that lacks the capability of transfer is classified as immovable property, such as buildings, walls, and land.

Seizure of Movable Property

The seizure of movable property is examined through several key principles:

1. Presumption of Ownership at the Place of Residence or Work: Pursuant to Article 62 of the Law on Enforcement of Civil Judgments, where the place of residence or workplace of the judgment debtor is known, the property located at such places is presumed to belong to the debtor. This presumption is based on the customary practice whereby individuals retain possession of their property. If such property does not belong to the debtor, proof to the contrary must be provided.
2. Ownership of Personal Property: Property that is customarily exclusive to women is presumed to belong to them, and property customarily exclusive to men is presumed to belong to them.
3. Non seizure of Property in the Possession of Third Parties: Under Article 61 of the Law on Enforcement of Civil Judgments, if the property proposed for seizure is in the possession of a third party and that person claims ownership for themselves or for someone other than the judgment debtor, the property may not be seized. However, if the possessor acknowledges that the property belongs to the judgment debtor, seizure is permitted.
4. Exempt Property from Seizure: Certain assets are deemed non-seizable by law, including property that falls within statutory exemptions.
5. Inventory of Movable Property.
6. Valuation of Movable Property.
7. Safekeeping of Seized Movable Property.

Seizure of Immovable Property

The seizure of immovable property depends on its registration status with the Organization for Registration of Deeds and Real Estate of Iran. The applicable procedure varies based on whether the property is registered or unregistered.

Frequently Asked Questions Regarding the Seizure of Assets of the Judgment Debtor