The Bounced Check as an Execution Writ

The Bounced Check as an Execution Writ

Prior to the amendments going into effect, the beneficiary of a bounced check had to go through drawn-out processes, such as filing a commercial case or asking for a payment order, which required them to deal with the subsequent time-consuming litigation at the three degrees of litigation before they could recover their debts. Advocates give you guidelines about the laws that contain this kind of information.

As of right now, the Federal Civil Procedures Code No. 11 of 1992's executive regulations permit the bearer of a failed check for insufficient money to utilize the cheque itself as a civil writ of execution. In other words, the beneficiary is not required to make a claim in order to begin the enforcement proceedings before the execution court. According to the new decree-Addition Law's of Article (635):

According to the Executive Regulation of Federal Law No. (11) Of 1992, "a cheque bearing the drawee's stamp as non-paid for unavailability or insufficient fund shall constitute an executive instrument, and its bearer shall have the right to seek the coercive enforcement, totally or partially."

Read More Here About:  Emirati Lawyers in Dubai and Legal Consultants




Partial Reimbursement for Returned Checks

The beneficiary of the cheque has the right to ask the bank for a partial payment of the cheque's value if the amount of the available funds is less than the amount of the cheque, and the drawee must partially fulfil the amount in its possession unless the bearer requests otherwise, in accordance with the language of Article 617 and the provisions of the aforementioned Article No. 635 bis. Along with returning the original check to the bearer along with a certificate confirming the partial payment, the drawee is required to initial the back of each cheque to certify the partial payment. This certificate will confirm the bearer's ability to demand payment of the remaining balance against the original of the initial check in accordance with Article (635) Bis or to file a protest following the expiration of the time periods specified in Article (632).

Read More Here About: Emirati Advocates Family Law

Additionally, the new amendments mandated under clause (D) of Article (641) a fine of "no less than 10% of the cheque value, subject to a minimum of AED 5,000, and no more than twice the cheque value against the bank which refuses to render partial payment of a cheque, issue a relevant certificate, or give back the original of the cheque as per the provisions stipulated in (2) of Article (641) in order to guarantee the partial payment of the beneficiary's due" (617)





Popular posts from this blog

Who Has the Best Ranking in a Law Firm?

The Managing Partner (or CEO) at the head of the law firm is known as "The King." This individual is portrayed as the leader of the kingdom and serves as its public face. The other partners, the nobles, possess "land" (i.e., own a percentage of the firm ). The portion of a law firm that equity partners earn is comparable to the amount of land that aristocrats controlled. In big legal firms, becoming an equity partner is a coveted position that very few people achieve. Knights (the salaried associates, income partners, and counsel attorneys in the firm) (the salaried associates, income partners, and counsel attorneys in the firm). The firm's salaried attorneys enjoy high regard for the quality of their work. It is possible for the very best knights and those who give the most sacrifice for the nobles over the longest period of time to become nobles, although this rarely happens. "The Guilds" (accounting, human resources, and their junior helpers and as...
Read more

UAE Cheque Bounce

Cheque issuance is prohibited by Article 599 of the UAE Commercial Transactions Law (No 18 of 1993) unless the drawer or person issuing the check has adequate cash with the drawee or bank where the drawee may dispose of money in accordance with an implied agreement between two parties. When the drawer/cheque issuer is unable to uphold its financial responsibilities, a crime is constituted under UAE Law. These things have been made clear by the law firms in UAE if they get any case related to this issue. A cheque may "bounce," be seen as "dishonoured," or be "returned" for further reasons, such as: Technical blunders for instance, the signatures don't match the bank's or the drawee's prior records. Closing the bank account before cashing the check Issuer issues a directive to the bank instructing them not to process the payment. UAE consequences of bounced Checks: Returned check Dubai cases are serious legal matters with penalties that may inclu...
Read more