new financial law in dubai uae

NEW FINANCIAL LAW IN UAE

NEW FINANCIAL LAW IN UAE CAN AID INDIVIDUALS FACING FINANCIAL DIFFICULTIES 

Financial crisis spurred host of efforts in UAE Cabinet to re-engineer their bankruptcy law regimes and approved a federal law as a legal mechanism to regulate cases of insolvency and/or aimed to resolve debt relief cases for individuals or natural person in UAE.

 

The newly pioneered Federal Decree-Law aims to strengthen UAE’s financial and economic stability by building a legislative and legal system primarily focused to increase transparency in civil debts and bolster financial security. This law guarantees the protection of debtor’s propriety and helps to devise an opportunity for them to cope with their finances and lessens their financial distress. More to say, this legal framework helps individuals repay their debts and guarantee that financial institutions receive their financial dues through transparent mechanism.

 

WHAT DOES THE INSOLVENCY LAW OFFERS?

The following are the main facets of the law:

  • Aids individuals who faces current or anticipated financial difficulties that makes them unable to fulfil their financial obligations and pay their debts.
  • Enables insolvent individuals to reschedule their debts and be granted new concessional loans.
  • Decriminalize financial obligations on insolvent individuals and protect debtors from legal prosecution.

 

This law provides two main avenue and procedures to insolvent individuals:

  • EXPERT ASSISTANCE: Insolvent person are given leeway to seek court assistance to settle debts. One or more experts will be appointed by the court, and these experts will coordinate with the debtor and creditor assisting them to advocate a financial settlement plan beneficial to both parties.

 

However, the court can terminate or reject a request made by the debtor under the following circumstances:

  • Insolvent individual tried to conceal any part of his assets;
  • Insolvent individual submitted false / fabricated statements concerning his assets, rights and liabilities; or
  • Insolvent individual failed to settle a due debt for a period of more than fifty business consecutive days.

 

  • LIQUIDATION PROCEEDING: In the event the insolvent individual is unable to pay his debts for an extended period of time, he then can resort to these process which is done by a trustee appointed by the court. However, this proceeding will impose restrictions on debtors use of his/her money and assets and will apply further restrictions in regard to entering into new obligations or obtaining new loans during the process.

Notwithstanding the above, the insolvent individual shall restore all his rights at any point in time in the event that he was able to conclude a settlement with his creditors and complies to its execution, or if the insolvent individual was able to establish that he has been discharge from debts to all his creditors.

ARE YOU LOOKING FOR LEGAL ASSISTANCE?

The Office of Al Reyami Advocates & Muhyealdeen can provide you legal advice and assistance through its dedicated team of experts in the light of the new Insolvency Law.

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Tenancy Law in Dubai UAE

Tenancy Law in Dubai UAE

Tenancy Law in Dubai UAE

UNDERSTAND THE SETTLEMENT PROCEDURE FOR RENTAL DISPUTE IN EMIRATE OF DUBAI.

Tenancy Law or Law No. 33 of 2008 regulates and embodies the legislations concerning the rights, obligations and framework the relationship between Landlords and Tenants in the Emirate of Dubai. Whilst, the Rental Disputes Centre (RDC) acts as the main forum and receives dispute application for resolving tenancy disagreements and cases.

Rental Disputes Centre (RDC) administers adjudication procedures enhancing rental judicial system developed to simplify the resolution process systematically and come up to speedy disposition of tenancy disputes.

Except for cases already assigned to special judicial court and cases related to long-term lease or financial lease contracts falling under the umbrella of Law No. 7 of 2006 for real estate registration, the jurisdiction of RDC extends to:

  • All rental disputes arising between tenants and landlords located in the Emirate of Dubai;
  • Counterclaims as well as requests for ad interim or expeditious action from either party to the tenancy agreement; and
  • Appeals from decisions and judgments in accordance with the provisions of the decree

OVERVIEW: Process and Procedures

RDC consists of two sectors: JUDICIAL and ADMINISTRATIVE. Administrative sector is mandated to provide technical and administrative support for the judicial sector. Judicial sector comprises of the following departments:

  1. Arbitration and Reconciliation Department is tasked for settling rental disputes amicably within 15 days, unless otherwise extended by the supervising judge. Once the parties reach a settlement, an official settlement agreement will be issued which will be executory in nature. In the event that parties failed to reach an amicable settlement, the dispute will be elevated to the First Instance Department.
  2. Department of First Instance consist of committees. These committees shall determine and decide if a rental dispute falls within the jurisdiction of RDC. The First Instance judgments are appealable to the Appeal Department within 15 days from the date following the issuance of the judgment.
  3. Department of Appeal committees shall adjudicate appeals (only if rent claim is more than AED 100,000, except if it falls under special circumstances pursuant to Article 17(1) of Law No. 26 of 2013) filed against decisions issued by the First Instance Department unless otherwise its outside the realm of its jurisdiction. The judgments issued by the Appeal Department are final and executory.
  4. Law Enforcement Department will execute and enforce all final judgments decreed by the First Instance and Appeal departments.

DOCUMENTATIONS AND FEES

Supporting documents required by the Centre includes:

  • Claimant’s Emirates ID or Passport or Company’s commercial license
  • Original Tenancy Agreement
  • Copies of cheques given to the landlord (if any) or Statement of Accounts
  • Notarized Power of Attorney issued by the party to its authorized representative (if any)

Rental dispute cases brought before the Centre generally involve fees of:

  • 5% of the annual rent of the leased property (no less than AED 250 BUT NOT MORE THAN AED 20,000)
  • Other fees such as: deposit of rent with RDC, expert’s fees, notice publication in the event the other party fails to show up during hearings)

CONCLUSION

As the judicial arm aimed to ascertain rental disputes in a speedy, systematic and bringing about steadiness in regards to tenancy relationship and matters concerning between the landlords and tenants, RDC is committed to continued upgrade of its working mechanism that enables rental parties to ascertain their legal positions and guides them in the legal proceedings at various stage until the finality or resolution of rental disputes within the Emirate of Dubai.

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business lawyer in dubai

Legal Support for Your Business

Knowing The Legal Requirements When Starting a Business in Dubai UAE.

When it comes to setting up a business or owning one, seeking legal support is essential. Running a business has its reasonable share of strains and endeavors. On occasion, the law is impending. Getting a legal assistance at these times are critical to a business’ success. It allows you to explicitly seek legal advice, and letting you operate your business effectively. This ensures that your business is compliant with the relevant laws and legal obligations that apply to overseeing it legitimately and ethically. If you have decided to open up a business in Dubai, you will stumble upon copious lawyers and law firms accessible for your company. In choosing a legal support, one should ensure that it has a comprehensive experience tailored to your business industry. There are many factors to consider in hiring legal services or lawyers. Good communication skills are keys to the efficacy of a lawyer. An effective verbal conveyance, good listening skills and a sound counsel is as imperative to understanding. For start-up businesses, its best recommended to appoint a law firm that can accommodate your budget yet is professional. There are legal solicitors who render consultation free of charge. They should have a clear understanding of your business commerce and provide a logical explanation while dealing with your case.

It’s a challenging task to find the best law firm for your business. Many law firms in the U.A.E. are working for different legal issues according to their forte.  You can search for law firms in Dubai on the internet through the Directory of advocates and legal consultants or bar associations. These are the best places to look in the business lawyers in Dubai and the law firms who are updated with the laws and work efficiently. You often perceive these commendable law firms on advertisements in the newspapers or the social media platforms. If someone recommends you the legal services, make sure to pay a visit to those law firms. The reputation of a law firm is categorically important for any business. It should provide you with proficient legal consultation and satisfactory outcomes. A good law firm is comprised with capable lawyers with an expertise to manage legal matters accordingly. They should be offering excellent and coherent solutions to their clients. There are some cases that don’t require a lawsuit but can be managed out of the court.

A law firm has an ethical infrastructure of legal practice and should know the business moral codes. In Dubai, client and case confidentiality is a key tenet of any law firm. The duty of confidentiality fosters trust between lawyers and clients. Lawyers will aim to protect every information shared by the client. The duty of confidentiality is an obligation which every lawyer must adhere to. In fulfillment of the customer, law firms should have legal solicitors who are orally articulate, have good written communication skills and be good listeners. They must be able to explain the case in English and Arabic. English is an international language but the local language of government institutions and court is Arabic, so attorneys must be fluent in both languages. The lawyers should be reachable 24/7 to the clients who have profound legal cases.

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injury law in dubai uae

Know Your Rights, If You Are Injured At your Workplace

Injured At your Workplace. What are your rights as employee if your company is in Dubai United Arab Emirates.

The Judicial Law of the United Arab Emirate for the Employer and Employee Relationship decreed the rights and obligation through the Federal Law No. 8 of 1980 wherein it governs the Labour rights of the employees in the Private Sector. It is stipulated in Article 144 of Federal Law No. 8 of 1980 which regulates the liability of the Employer during the course of the Employment, the Employee sustains an accident; contracts an occupational disease or is disabled, the Employer shall pay for the cost of the injured Employees treatment in a local government or public medical center until he recovers.

What does such Treatment Include?

Treatment shall include costs of residence in a hospital or sanatorium, surgical operations, expenditure on X-rays and medical analysis, the purchase of medicines and rehabilitation equipment, and the supply of artificial limbs and other prosthetic appliances for any person who is declared disabled. In addition, the Employer shall pay the cost of any transport entailed by treatment provided for the Employee.

Is An Employee entitled to Full Salary, during this period?

Yes and It is imperative to be aware that Employees are entitled to receive a full salary. The salary can be throughout the treatment period or up to 6 months whichever is shorter and thereafter, half of his salary for another six months or until the Employee completely recovers shall be payable to the Employee. In accordance with Article 145 Federal Law No. 8 of 1980. The Law also states that an Employee is fully protected in the U.A.E. and has the right to get compensation, salary, expense payments, etc. in the case whereof he is discriminated, terminated on wrongful grounds, not paid or if he gets an injury.

Why Lawyers or Legal Consultants are recommended during such events?

A Legal Adviser can be a substantial support to an Employee, Employer, or even a service provider during events that of worst scenarios. A legal adviser will assist both the Employer and Employee in terms of advice, filing lawsuit and representative the employer or employee at all levels of the competent court of laws. It is crucial to seek legal advice prior to taking any legal action against any individual be it employer or employee.  We strongly recommend consulting Al Riyami & Muhyealdeen International Legal Consultants or any other Consultant of choice for taking any legal action, other than this legal knowledge.

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Termination due to Covid-19 Pandemic Effect

Rightful Employment Termination due to Covid-19 Pandemic Effect

Termination due to Covid-19 Pandemic Effect. Rightful Employment Termination guide for business Owners and Management in Dubai UAE Labour & Employment Law.

The spread of the Coronavirus has widely traversed the world wherein it has unveiled the vulnerability of the global economy. This effect has agitating for the businesses as they were vastly affected by the pandemic. During these unprecedented and ambiguous times, the U.A.E. government gets its under way in imposing measures to suppress the outbreak. Thus, the business sectors are determined to respond by preserving its workforce and organization thereby they do not face insolvency.

In reference to the Judicial law of the United Arab Emirate herein stipulated as Section 2 of the U.A.E. Labor Law Federal Law No. (8) OF 1980 wherefore it confers sick leave entitlements and rights for employees, whereby when the same completed his or her probation period and has spent more than three months in continuous service for an employer he or she is entitled to a sick leave. Also, Article 83 of Section 2 of the U.A.E. Labor Law Federal Law No. (8) Of 1980 affirms that the duration of leave should not exceed 90 days of either consecutive or non-consecutive for every year of service. However in respect to Article 82 of Section 2 of the U.A.E. Labor Law Federal Law No. (8) Of 1980, as amended, the employee must notify the employer about his sickness within two days upon taking a sick leave. The employer has the right to put the employee under a medical examination in order to verify the illness, and the authenticity of the employee’s leave.

The Dubai Health Authority has set its policy wherein employees in the private and public sectors are mandated to get a Sick Leave Certificate which will help to avert employers from workday losses. Thus, an employer may not dismiss or serve its employees termination whilst on sick leave. The same applies to the current pervasive situation we are faced with as the COVID 19 cases rapidly increase in numbers. If an employer breaches the contract with the employee without notifying them, the employee then has the right to file a complaint before the Ministry of Labor in the event whereof the employee and employer are unable to reach an amicable solution. An employee can claim compensation from the employer. If the employee uses all of his 90 days’ sick leave and was not able to report to work afterwards, the employer may terminate his services. In such a case, the employee shall be entitled to the end of service gratuity in accordance with the provisions of the U.A.E. Labor Law.

The U.A.E. Labor Law protects the rights of every employee, employer and the businesses in the United Arab Emirates. A person who lives and works in the U.A.E. has wide options to seek help if faced with employment-related matters as there is a comprehensive law, judiciary initiatives, public prosecutor, courts, lawyers, law firms, etc. We strongly recommend consulting Al Riyami & Muhyealdeen International Legal Consultants or any other Consultant of choice for taking any legal action, other than this legal knowledge.

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ESTABLISHING COMPANY IN DUBAI

ESTABLISHING A COMPANY IN DUBAI: DO YOU NEED A LAWYER?

Dubai, being once known as a desert city and now a city of endless possibilities, is undeniably, extravagant and promising.

Its emergence as a commercial hub over the last 15 years has been way too rapid that it is now among the easiest and fastest to set up a business globally.

Launching a business in the region, whether branching off an existing company as part of a geographic expansion strategy or starting out a completely new different enterprise can be as fast as a flash.

In a week or so, you will be able to get your business ready with just a few ‘must-do’ and ‘must-considered’ steps.

First, you must identify the correct type of your venture. This will determine the category of your business license, which will be reflected in the trading name.

Second, the activity your business covers also defines your business structure and type of license.

Third, most of the Expats who are having a 100% ownership of the company, establish their business in a Free zone Authority where minimum official procedure and duration is needed; hence the process is comparatively straightforward.

Setting up a business in Mainland Dubai, on the other hand, requires a trade license from the Dubai Economic Department. This license requires you to have a partnership with a UAE national, who has to compulsory hold at least 51% of the total equity of the company.

Lastly, you must consult with a legal counsel in Dubai UAE to have all your legal documents (Memorandum of Association) assessed. When organizing a business, nothing is as vital as priming your paperwork as this will determine whether your company will operate in terms of profit or loss.

From business opportunities to enterprises in all sizes clearly manifest the rise of Dubai, from a desert city to a city of endless possibilities.

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ACQUIRING AN ASSET IN THE UAE

ACQUIRING AN ASSET IN THE UAE: THE LAWS AND THE PROCESS

Over time, the law has been eased in permitting expats to acquire properties in the city.

As Dubai is a progressing city, everything is possible, including ownership of non-UAE nationals to various assets. This out-turns into a high property demand at a higher price, after which the problems of the market in 2008.

What was once an intricate is now an easy process for foreign investors to buy an asset in this city. As per UAE law, by simply paying 10% to 15% deposit with the balance payable over a certain period, you will be able to acquire an off-plan property from a developer. As easy as it may sound, you must make sure that the developer you will deal with is registered in the Dubai Land Department and that all payments will be rendered under an escrow account. You must also completely comprehend all the legal documents that you have to sign. If in doubt, you can always ask, verify, and confirm.

Aside from a developer, you can also deal with a Real Estate Company or through a brokerage.  The Real Estate Regulatory Agency, known as RERA will help you verify if your broker is listed with them. RERA is a government agency that controls and legalizes the real estate sector in the city.

Lastly, you must have the Sale and Purchase Agreement or SPA. This serves as your legal contract. This entails your undertaking to buy and your seller to sell the asset.

As you are purchasing an off-plan property, the completion of the project, the actual sum of all the payments, even the penalties in the event of breach of contract, as well as the courts certified to hear any cases and disputes in case of any issues, should all be outlined and recognized in your contract.

Owning an asset is everybody’s accomplishment. In this fast-paced world, this is among the many ways how to measure someone’s success. Purchasing a property is one of the biggest decisions one can make in his life; hence, if needed, don’t hesitate to seek assistance from a professional legal counsel in UAE.

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One Day Court

ONE DAY COURT MISDEAMENOR

Type of Cases Handled in “ONE DAY COURT MISDEAMENOR” in Dubai UAE

Being well-known as one of the most dynamic and fastest growing city in the world, Dubai has launched its initiative.

In a meeting held on the 7th March 2017 at the Dubai Executive Council head office, located in Emirates Tower, the Penal Order Law No 1 of 2017, also known as the ‘One Day Misdemeanor Court’ was finally approved by His Highness Shaikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

Following the said approval, the initiative was instantaneously executed in all police stations in Dubai on the 8th March 2017.

While there are many perceptions about this project, Shaikh Mohammed Bin Rashid Al Maktoum underlined that this guarantees people the right to fair trials and justice in a timely manner without compromising the veracity of law. To come up with a highly efficient and fast service from the long and difficult process is what ‘One Day Misdemeanor Court’ eyes on achieving.

Shaikh Mohammad also highlighted that with the judicial system UAE holds, justice, being at the heart of every society is being given equally to both individuals and organizations.

The whole process of Court proceedings such as investigation and prosecution will be shortened by 60% of the current estimated turn-around time; hence, a conclusion will be able to carry out faster than expected – in less than 24 hours, saving the government around 40 million dirhams in a year.

In total, 21 types of cases are included in this 24-hour system.  All of which will be heard in the Police Station with the prosecution and court on site. This strategy lets the Public Prosecution to immediately cope with the other certain cases, without referring them to the court through a penal order; hence making the whole process efficient and effective.

Some of the cases are as follows: 1. Illegal entry into the country, Returning after deportation, and Staying in the country illegally to be handled by the General Directorate of Residency; 2. Possession of alcoholic beverages, Consuming alcoholic beverages, and Giving a cheque with malicious intent to be handled by the Police Station; and 3. Involvement in an accident that injured someone, Wrecking properties, and Drinking and driving to be handled by the Traffic Prosecution.

Meanwhile, the Traffic Department, together with the Residency and Foreign Affairs, has primarily tested this “One Day Court Misdemeanor” in 2015.

Dr. Naser Muhyealdeen, Partner and Senior Lawyer of Hassan Al Reyami Advocates and Muhyealdeen International Legal Consultants has warmly expressed his support in this most recent initiative.

In Dubai, being successful and flourishing when it comes to business, time is indeed an essential element, Muhyealdeen added.

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Compensation Claim

How to Claim Compensation if you are a Victim of a Criminal Case.

Know the procedure on how to Claim Compensation if you are a Victim of a Criminal Case.

Many individuals who have suffered from a criminal act are oblivious of their rights to seek financial compensation for loss of potential gains and incurred damages caused by the offense. Furthermore, in most criminal cases, the victim is unaware that the monetary penalty imposed on the accused during a criminal proceeding is to be paid to the court and not to the victim. This means that unless the victim files a separate civil lawsuit to claim compensation from the accused, he will not be able to receive any payment for the damages resulting from the offense.

In the United Arab Emirates, victims of criminal offenses are given the right to seek financial recompense for a criminal offense. According to the UAE Civil Law, the financial compensation can be demanded by the victim regardless of the nature of the offense – whether it be financial, physical and so on.

When an individual becomes a victim of any criminal conduct, this is reckoned to be a distressing situation that could affect the individual’s well-being. The effect is not always a financial loss. However, being recompensed financially can still help the victim recover from the situation and remedy the out-turn of the crime that has been inflicted on him. Furthermore, it can also be a way of seeking justice and getting a closure.

The Criminal Procedure in the UAE gives the victims of any form of crimes a legitimate prerogative to claim compensation. A civil claim given to the victim will be decided by the criminal courts during the criminal procedure prior to the judgment of the First Instance Criminal Court which hears civil cases. This too protects the constitutional rights of suspects and defendants to ensure all stages of investigation, arrest, trial and sentencing are conducted indiscriminately. The limit to the amount that can be claimed depends on the discretion of the courts.

In addition, if the victim holds an insurance policy, the insurer or the insurance company has the right to file a financial claim before the criminal courts throughout the litigation. This is determined by the damages done by the crime.

There are three anticipated circumstances that the criminal courts decide on the civil claim raised within the criminal trial. If the suspect is found guilty, it will be the court’s discretion to grant the full or partial compensation amount. In cases where the compensation amount demands a tedious process such that further investigation is required to assess the situation, the courts have the right to decide on the suspect’s verdict and consequently refer the civil claim to the Civil Courts. Lastly, the Criminal Courts would dismiss the criminal allegations if the suspect is found innocent. This can also be the decision if the case is merely a civil dispute. In such an event, the case will be referred to the civil courts. There is also a probability that the courts will disapprove the compensation.

Some of the questions relating to this subject that need to be addressed are the following:

  1. Question: When is the best time to file a civil case – before the Civil Courts now or before the Criminal Courts?

 

Answer: There is no single answer to this question as the matter will always be affected by the nature of the offense, but considering practicality, it is advisable for the accused to file the case first in the Criminal Courts. Doing so will give the victim and his lawyer the rights to participate and attend the hearings in the First Instance Courts and to file a complaint for appeal should the accusation of crime be dismissed.

 

  1. Question: Will a “Not-Guilty” verdict on a criminal case automatically cause the dismissal of the civil case filed?

 

Answer: Criminal cases may be dismissed due to insufficient evidences or absence of breach of the criminal law. The accused is then given a “Not-Guilty” verdict. However, the civil case will not be automatically dismissed if there is a valid claim in the civil courts. The basis can be a tortious liability whereby a person’s rights are violated. The other basis is a contractual liability where a risk is assumed on behalf of another party as a result of a contractual agreement.

The civil case may be dropped by the victim any time during the legal process.

Disclaimer: This article focuses on general legal information extracted from the UAE Criminal Procedures Federal Law No. (35) Of the Year 1992 and from the experiences of Al Reyami Advocates & Muhyealdeen International Legal Consultants. Thus, any information provided herein is only a general advice or a set of guidelines. This article must neither take the place of a legal counsel from a professional legal service provider nor keep the reader from seeking legal advice, initiating a legal proceeding or suspending an ongoing case.

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Bounced Cheque Dubai UAE Law

Is Bounced Cheque a Criminal Case in UAE?

A bounced cheque which is also known as a dishonored or returned cheque is a non-sufficient funds cheque that cannot be processed because of the following reasons:

  • There is not enough money in the account of the drawer on the date the cheque was issued.
  • The bank account had closed prior to the encashment of the cheque.
  • There is a technical problem such as a mismatch in the signature on the cheque and the signature in the bank’s records.
  • The account holder instructed the bank to hold the payment.

The UAE has its set of repercussions for cases of bounced cheques and criminal charges are strictly imposed on people who present a cheque with insufficient funds or with full knowledge that it will not be cleared.

According to Article 632 of the Commercial Transaction Law, in the event of a default in the processing of a cheque due to any of the reasons stated above, a period of 3 days may be given to the cheque bearer to contact the drawer for the possibility of funding the cheque. Should the drawer be unavailable for communication within the given period, the drawee or cheque bearer has the right to take legal action. In such a case, the drawee can file a criminal complaint about the bounced cheque along with a civil case for the recovery of the cheque amount. The civil case will provide the drawee with an assurance that the amount denied will be recovered.

The process of filing a legal case against a drawer can go through several stages and the ramifications of a dishonored cheque may vary depending on the response of the drawer and the evidences provided.

  1. Police Authority

A complaint on a bounced cheque may be initially reported to the nearest police station located in the concerned Emirate. This requires presentation of relevant documents and evidences. The police authority will automatically issue a warrant of arrest against the drawer. The drawer can respond by settling the case or submitting his passport so that further time may be given for him to provide the amount required. The warrant can be withdrawn after the drawer clears the matter or serves the jail time prescribed.

  1. Public Prosecutor

The case will be forwarded to the Public Prosecutor for further investigations if the parties fail to resolve it at the police station. A report shall be prepared based on the proof provided. To give security to the drawee, the prosecutors can either hold the passport of the drawer or the guarantor or require a payment corresponding to the estimated amount of the cheque. The drawer will be kept in custody until the issuance of the final decision if the bail is denied.

  1. Criminal Court

At the criminal court, the drawer may be convicted based on the evidence provided by the drawee. According to Article 401 of the UAE Penal Code, the punishment can either be a fine ranging from AED 1,000 up to AED 30,000 or imprisonment from one to three years.

There have been recent advancements where the government has stipulated laws to address small claims or petty offences. Such laws, enacted through the “One-day court”, allow small cases of bounced cheques to be given a decision within 24 hours and resolved with a detention sentence. This is now in force in Abu Dhabi, Dubai and Ras Al Khaimah and the effectivity in reducing the number of cases processed at the Criminal Courts has been observed. As a result, serious cases have better chances of getting resolved faster as the Criminal Courts now have enough time to deal with them.

In addition, Dubai has come up with a law on “Criminal Orders”, which allows the Public Prosecution to resolve “simple violations” with monetary penalty. The matter will only be transferred to Criminal Courts if there is an objection to the sentence issued and the objection is documented within 7 days of the issuance of the verdict.

An issued cheque worth AED 200,000 and below is classified as a simple offence and will be given a penalty of about AED 5,000 – AED 10,000. This is not punishable by imprisonment in Dubai. Thus, lawyers often advise their clients that when receiving cheques, it would be better if they require an amount higher than AED 200,000 so that in the event of a dishonored cheque, the drawer will be bound to face imprisonment. With such possible punishment, there will be a lesser chance of the drawer not funding the cheque.

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