Civil Case Bounced Cheque
Civil Case Bounced Cheque (Cheques without balance) – In the UAE, a bank cheque is one of the most widely used methods of financial transactions. This is one of the main reasons why bounced checks are a common phenomenon in the UAE. A bounced cheque, also known as a rejected or bad cheque, may have legal effects – both civil and criminal, against the issuer.
It’s a crime when any account holder issued a cheque with insufficient funds. A payee’s name can register a case against the account holder and he has the right to collect his debts.
If you find yourself in a difficult situation where the bank returns a check you issued or received, here’s everything you need to know.
There are some reasons why cheques are bounced:
- Due to insufficient funds (NSF)
- Cheque issued but canceled the cheque with the bank or if the account holder closed the bank account
- The signature of the account holder or payee name is incorrect in the cheque
- If the account is frozen etc.
How to deal with bounced cheque cases?
If the cheque is bounced for any reason, the party affected by the cheque has the right to file a complaint with the civil court to recover the amount. The government is making efforts to regulate the commercial and economic sectors, in order to consolidate the state’s position as a leading regional and international center for major global companies and institutions.
Amendments included in the new checks law in the UAE
- Govt. giving an opportunity to settle the pending dues
- Providing alternatives to simplify and speed up the process of collecting the amount of the cheque
- The beneficiary has the right to submit a request to the execution judge for execution on the funds of the account holder’s name
- Obligating the bank to a partial payment of whatever amount available in the account
- The rest of the amount or a full amount of the cheque beneficiary has the right to file a case with a supporting document (Bounced Cheque Certificate)
All are filed Civil Case Bounced Cheque?
No, some bounced cheques are still facing criminal offenses. The issuer of the cheque may face also a criminal stage such as:
- If the accounts holder orders the bank not to cash the amount before the due date
- If the issuer of the cheque closes his bank account or withdraws the amount
- Put wrong details in the cheque (Such as signature, dates, etc)
- Fraud
Temporary Punishment in the Criminal Court
Imprisonment or a fine with a travel ban shall be applied to anyone who presents a check without a balance in bad faith. The Public Prosecution Court decides the appropriate punishment, whether by fine, imprisonment, or both, or bail payment by depositing the value of the check or depositing the passport of the person who is late in payment or another guarantor’s passport. If the bail is accepted, the Public Prosecutor may order the imposition of imprisonment on the site of the bounced check until the court hears and decides the case.
Criminal Court
After the court evaluates the case and determines the reasons for the bounced check, the court may order a fine, imprisonment, or both. The term of imprisonment can range from one month to three months and up to 3 years, and the fine ranges from 1,000 to 30,000 dirhams depending on the value of the bounced check. It is imperative to understand that a criminal case is a punishment for a crime which is the signature of a check without balance.
Civil Court
Civil Case Bounced Cheque If the account holder served a jail term and is still unable to pay the claim amount a complainant (payee name) is still able to collect claim the amount he can register the file in civil court
Court Fees
For filing a civil case beneficial has to pay 6% of the deposit in court. If the claim amount is less than 500,000, court fees are a minimum of 500 Dhirams and the Maximum deposit is 20,000 DH
If the claim amount is between 500,001 to 1,000,000 – The court deposit is 30,000 DH. If the amount is 1,000,000 or above the court fees are set is a total amount is 40,000 DH court deposit
For a Consultancy:
Civil Case Bounced Cheque lawsuits are common in the United Arab Emirates and this can be caused by several factors such as illegal termination of contracts, corporate bankruptcy, escape of the check writer, etc. In fact, when the bearer of a bounced check files a police complaint, the best way to resolve the issue for both parties is to settle the matter at the police department by mutual consent
However, if the parties are unable to reach an amicable settlement, and the matter is escalated, resorting to an experienced attorney as soon as possible is the best decision that can be taken to prevent any damages or further legal complications
Legal services for bounced cheque cases. We will file criminal and civil cases for our clients. Our legal experts are dealing with bounced cheque cases or further debt recovery or collection through the UAE.
For all kinds of debt collection, you may contact our office. We have the best UAE citizen legal expertise. We are offering our services throughout the UAE. Our law firm has more than 20 years of experience in the legal field. Please explore more about our office
GET IN TOUCH