Bounced Cheque Law

The United Arab Emirates (UAE) has a strict legal system that is designed to maintain order and ensure that individuals and businesses are held accountable for their actions. One of the laws that has garnered a lot of attention in recent years is the bounced cheque law. This law has been controversial because it has been used to prosecute individuals who have written a cheque that has bounced due to insufficient funds in their accounts.

This principle states that when you write a cheque, you are making a promise, and that promise should be fulfilled. If you fail to fulfill your promise, you are breaking the trust, and that is a serious offense.

Under the UAE bounced cheque law, writing a cheque with insufficient funds is a criminal offense. This means that if your cheque bounces due to insufficient funds, you can be prosecuted, and you could face imprisonment and/or a fine.

It is important to understand the various factors that can lead to a cheque being bounced

• A cheque can be bounced due to insufficient funds in a bank account
• Cancel the cheque or the account holder will close his bank account
• The signature of the account holder or a payee name is incorrect
• Bank frozen account holder bank account

The new law of Amendments

• Allowing settling the pending dues with the affected party
• It is a speed-up process for collecting the amount
• The beneficiary has a right to submit a request to the execution judge for execution on the accounts holder’s name
• Banks are obliged to pay the partial payment or whatever the amount holds in his bank account
• For the rest of the amount or the full amount of the cheque beneficiary has the right to file a case with a supporting document

Is all are bounced cheques filed for a civil case?

No, some bounced cheques are still facing criminal offenses. The issuer of the cheque may face also a criminal stage such as:

• If the account holders request the bank not to cash the amount before the due date
• If the account withdraws the amount or close his bank account
• Put wrong details on the cheque (such as signatures, dates, name, etc.)
• Or a Frauds