Cheque bounce in Dubai
Cheque bounce in Dubai A bounced cheque means a cheque when the accounts holder issued a cheque with insufficient balance or insufficient funds (NSF).
It is a crime when the accounts holder issues a cheque with insufficient funds. It brings about criminal penalties either account holders have to pay the money return or suffer the sentence in Jail.
Legal order passed in 2017
Cheque bounce in Dubai In a legal order passed in 2017, an account holder issued a cheque with the amount of 200,000 or less with insufficient funds, it can solve their issue after paying a fine. The account holder can close their case by paying fines on their smartphones without having to go to the police station.
However, it doesn’t mean your case has been completely solved A receiver (payee name) of a cheque can still file the case in the court
As per legal order law, No 1 2017, an account holder with a bounced cheque worth less than Dh 200,000 can
be punished by the prosecution without the case being referred to the judges, with
the payment of an utmost fine of Dh10,000
A fine calculation of bounced cheque as passed in the legal order
- AED to 50,000 DH – Fine imposed 2000
- 50,000 AED to 100,000 –Fine Imposed 5000 DH and
- 100,000 AED to 200,000 – Fine imposed 10,000 Dh
Be sure that the issuance of the cheque has sufficient funds in the account holder’s bank account. A complainant can open a case in court because he has the right to collect his funds.
Learn about the NEW Law of Bounce Cheque – Amendment in the bounced cheque law
WHAT WILL NEXT IF THE CHEQUE IS BOUNCED?
If the cheque bounced the complainant can file a case against to whom the cheque was issued. Initially, it will be registered with the Police station then the case is forwarded to the public prosecution. If the amount is more than 200,000 then the case needs more investigation and forwarded to the criminal court
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