Bounced Cheque law in UAE is a crime A bounced cheque is a crime of misdemeanor, that the punishment for the bounced cheque crime may be imprisonment for a definite/fixed term depending on the facts and circumstances of each case. The imprisonment may be coupled with a fine anything between 1,000 – 30,000 Dhs.
And here comes the obvious question, Is there a defense to the bounced cheque?
Yes, there are defenses to the bounced cheque crime.
Before going to the defenses to the bounced cheque, let me shortly explain the general nature of the crime of a bounced cheque and its criminal elements of actual crime committed and the mental element of the act which makes it a crime.
The cheque must have been written in bad faith. The guilt intention, the mental element attached to all crimes, is attached to the crime when it is committed in fact. The person is taken to have written a cheque in bad faith if he knows that he does not have sufficient funds to clear the cheque at the time he writes it or he is careless or uncertain as to whether he has or has not sufficient funds to pay the entire sum of the cheque. The drawee (person who writes the cheque) make a signature on the cheque which confirms sufficient funds on the account.
- If the cheque is stolen or lost, that may provide a defense to order the bank to cancel the Cheque Bounce law in UAE.
- If the cheque is tampered with or torn, it is invalid and considered void. For example, if it is not clear to whom the check is written, that may prove to be a defense.
- It is also a defense if the parties (creditor and debtor) agree to settle the case before it is decided before the court.
- Another form of defense may be provided in a situation where the cheques are being negotiated by way of endorsement of the payment to another person (this situation arises when the cheques are being written as a guarantee.
- If the endorsement or a re-endorsement is being banned, the endorser is not liable to the person who wrongly acquires the cheque after the prohibited endorsement.
- There is also a fairly recently promulgated degree no 56 in 2009, that establishes the Committee responsible for investigating bounced cheques when they are being written in the context of real estate transactions between the beneficiary/tenant and the developer of the real estate. The Committee has powers to intervene in criminal proceedings and a duty to investigate the matter and the committee may issue its decision or refer it back to the court for a trial. The Committee may issue a decision to cancel the cheque or to order a new cheque to be written.
Source of law:
- The main Article is 401 UAE Penal Code Degree No 3 of 1987 as amended by Degree 34 of 2005;
- Article 599 UAE Commercial transactions Law Degree No 18 of 1993.
So what you should do if you are an accused in a criminal case due to cheque bounce is not to waste any time and seek legal assistance from a trusted law firm who provides Criminal Litigation services. If you would like, you may contact us, as we the Khairallah Advocates & Legal Consultants, one of the best law firms in UAE provide all legal assistance. We would be more happy to help you out.
FAQ about Cheque Bounce law in UAE | cheque bounce case in dubai
1- What are the laws regarding bounced cheques in UAE?
lawyers in Dubai for cheque bounce say; UAE laws governing returned checks. The law in the UAE regarding returned checks has occasionally been modified. If a check bounces beyond the allowed limit in the UAE, there are criminal repercussions for the offense. The creditors have been realistic in drawing the checks and securing their payments by taking into account a variety of fees and penalties.
2- What happens if you get a cheque bounce?
bounced check case: prison time, travel restrictions, court fines, and so on. A settlement is a civil lawsuit for the payment of the amount of a bounced check. The rental check bounced Failure to pay a credit card bill and related legal action.
3- What is the penalty for cheque forgery in UAE?
according to cheque bounce cases in UAE; Cheque forgery is punishable by a minimum of one year in prison and a fine of no less than Dh20,000 and no more than Dh100,000 Despite the UAE’s decriminalization of bounced checks, particular circumstances will continue to be offenses in order to achieve decriminalization aims and their replacement by civil measures.
4- how to check cheque bounce case status in dubai?
Dubai Police is a free online tool that allows UAE residents to check if they have a travel ban due to financial crimes in the emirate of Dubai exclusively. To utilize the service, you must input your Emirates ID card number as well as the cellphone number associated with your Emirates ID.
Learn More About: Dispute Resolution Mediation Centers in the UAE