Bounced Cheque Case | Bouncing Case and new Law UAE

Bounced Cheque Case Bouncing Case UAE

TABLE OF CONTENT

1. Amendment in Law
2. Are all bounced Cheques are decriminalized
3. Minimum Imprisonment and Penalties
4. Civil Case Law Suit Procedure
5. Ask a Lawyer

Bounced Cheque Case | Bouncing case new law case of a bounced cheque for any financial case inquiry. Many individuals face the problem of bounced cheques during their stay in the UAE, which is a criminal offense and its penalties are financially costly, as bounced cheques occur in many commercial transactions, including but not limited to financial transactions between companies, bank loans, and renting (such as rental dispute) and buying real estate, and commercial transactions between individuals.

Amendment in Law

Bounced Cheque Case Previously if the payer account had insufficient amount banks were obliged to issue bounced cheque certificates, Beneficiaries of bounced cheques needed to report to a police station for further process of investigation which is called a criminal case. 

In a new law, banks are obliged to make a partial payment unless the account holder disagrees, and for the rest of the amount, the bank will issue the bounced cheque certificate, and the new law enables the claimant can file a civil case to recover the remaining amount.

Are all bounced Cheques are decriminalized?

• Before the due date, If the account holder orders the bank to not cash the cheque.
• If the account holder closes his bank account or withdraws the amount before the due date
• Wrong signature on the cheque or other details
• Fraud
• Frozen the account holder’s account

Previously all bounced cheques are a crime, but under the new law which has been limited 

Minimum Imprisonment and Penalties

Unless fraud can be proven, there are no jail terms. Giving the opportunity for people to settle their dues.

• Minimum, penalties depend on the Cheque Value for criminal cases. 
• 2000 AED value of cheque 50,000
• 5000 AED Value of Cheque 50,000 – 100,000
• 10,000 AED Value of Cheque 100,000 – 200,000

The law specifies that the criminal offense of bounced cheque will no longer be only if the cheque is bounced due to an insufficient amount. The drawer only has to face a civil case, if the drawer commits any of the criminal acts mentioned above, then the account holder is liable to pay a fine/jail term.

Civil Case Law Suit Procedure

Following up on bounced cheque cases requires proper legal steps and guidelines. It requires a legal memorandum in Arabic format which is written by legal experts for civil case lawsuit

• Amendment Protect the right – The aim of this amendment is to expedite the process and to support the right of both parties. 
• Prepare a Legal Memorandum –before filing a case translate all your documents into Arabic format and prepare the best legal memorandum in Arabic (Which is written by a legal expert or legal consultant) then submit it to the court.
• Civil Court – You can file a civil suit. A civil lawsuit is where the plaintiff can file a civil case against him/her. In civil court, a plaintiff can recover the amount but before the registration of a civil case, a plaintiff has to pay 6% of the Dubai court deposit from the claim amount (but not more than 40,000 AED it’s fixed by the court)

Frequently Asked Questions:

Timeframe receiving the money?

It may vary between four-month and depend on the drawer assets or the country. 

The other way is to take advantage of the new insolvency law in the UAE and settle your debts with the help of legal arbitration

What if I don’t have the money to pay the amount?

In this case, there are two options you can consider. Once you realize that you do not have enough credit, it is better to take the other party to the trust and make a plan to pay the amount in reasonable installments.

The other way is to take advantage of the new insolvency law in the UAE and settle your debts with the help of legal arbitration

For a Legal Query

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