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Laws regarding Bounced cheques in UAE

Law of UAE for bounced cheques have been amended from time to time. Such crime brings about criminal penalties if the cheque bounce in UAE crosses the prescribed limit.

By considering several fines and penalties the creditors have been practical at drawing the cheques and secure their payments. This approach has made a powerful effect to reduce the crimes regarding bounced cheques Dubai UAE.

As per the amendment s of 2017 if any person who draws a bounced cheque of amount DH 200000 that bounced cheque will be solved by paying a fine.

In case if the issuer paying the fine will not solve the matter of bounced cheque the complainant still file the case with the court.

Cheque Bounce Fines in UAE

Amount of cheque drawnFines imposed
Bounced cheques worth DH 5000 to DH 100,000DH 5,000
Bounced cheque worth DH 100,000 to DH 200,000DH10,000
Bounced cheque worth DH 50,000 to DH 100,000DH 5,000

Who convicts the cheque issuer?

  • Civil and criminal court functions separately for bounced cheques
  • When the complainant receives any bounced cheque and fines any initial complainant in the police station against the issuer the case will further forwarded to public prosecution.
  • The court will deal such case with order and fine or if the case needs investigation it can also proceed to criminal court.
  • If the valid evidence is provided then the criminal court may convict the issuer it will give them two options go to jail or pay money.
  • If the person fails to get the cheque amount even after the imprisonment then the complainant can present his complaint further in a civil case for bounced cheque to prove its evidence.
Read more:  Bounced Cheques Facts that You Should Be Aware Of

When the issuer of the cheque already paid the fine

When the issuer of the cheques has already paid the fine for drawing a bounced cheque Lower than equal to 200,000 then the complainant can go straight to civil court to claim.

When the issuer unable to pay after the jail term

When the issuer was convicted for the bounced cheque and has served the jail term he may stand released. But if the complainant files the case against them the issuers have to pay the amount or go back to jail.

Corporate cheque

All the companies and partnership firms can be held liable if the cheques are being issued without any sufficient funds in the banks.

Read More: New law regarding cheque bounce in UAE

Implications of a bounced cheques in UAE

When the issuer draws a bounced cheque Dubai, he has to bear all the criminally under bounced cheques laws of UAE. In such cases, the court shall ask the issuer to realize only through assets and liability of the company.

If the loss or lack of funds resulted in any kind of fraud by the owners or partners the case may also go through different reaction for investigation.

You should know: How do I recover value of a bounced cheque with the help of Debt Collection Lawyer?

When the owners and managers abscond

When the company does not have enough funds to settle the value of the cheques, he or she can file a criminal complaint against the owner even if that person has left the country.  Once the judgement is issued court may include the concerned authority to include in INTERPOL lists.

All the copy of bounced cheques has to keep as a record for banking or any other purposes. also, keep a track on all the cheques that are being issued and present for evidence purpose.

Lawyers in Dubai

Cases related to bounced cheques Can be very difficult to deal with if you have trouble dealing with any bounced cherub cases then seek the help of lawyers for legal help. Our team of HHS lawyers and legal consultant can help you deal with all the cases regarding bounced cheques and also prove with all the necessary advice. For further consultation contact us

Hazim Darwish

Hazim Darwish, is a Senior Partner of HHS Lawyers in UAE. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. Hazim Darwish also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators.