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 include jail time, travel restrictions, and fines. The Lawyers at Ask The Law - Al Shaiba Advocates and Legal Consultants who handle matters involving bounced checks have in-depth knowledge and a wealth of expertise in doing so in compliance with UAE Law on commercial transactions.

Conviction of the Check's Author:

In order to file a complaint against the issuer of a bounced check and have the matter transferred to public prosecution by the criminal court, our legal consultants can assist the recipient of the cheque. Based on the facts we present on your behalf as the complaint, the court might find the cheque issuer guilty. A guilty issuer may be offered the choice between serving time in prison or releasing the money that is owed.

  • We can assist the complainant in taking the matter to the UAE civil court with sufficient paperwork as evidence if the debt is still not paid even after jail. The person would be requested to leave the UAE after receiving their seized passport back if the debt is not paid after serving their jail sentence.

  • Who is responsible for Corporate Cheques?

Partners and stakeholders are not held accountable for checks that are issued but are not clear because there is not enough money, as is the case for corporations and partnership firms. The authorized signature, who is frequently a co-owner, partner, or manager, is responsible for criminal culpability. The value of the check cannot be determined by private finances from third parties, but it may be determined by selling off corporate assets.


Note: Please be informed that Laws are changed every year, so therefore no liability is taken or owned. We suggest you recommend good Law Firms.

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

The Bounced Check as an Execution Writ

Image
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-p...
Read more