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 The warrant can be withdrawn after the drawer clears the matter or serves the jail time prescribed.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.

filing theft case in dubai uae

Filing a Theft case in UAE

How to file a Theft case if you are in Dubai UAE?

Theft is a type of crime that is committed when a movable property is taken permanently from its owner without his or her consent. This involves the acts of stealing a movable property, obtaining goods through pretentious methods or accepting property that was stolen by another person.

According to Federal Law Number FEDERAL LAW NO. 3 of 1987, anything that can be taken under custody is considered a property. Hence, stealing goods from shops, breaking into private places to steal items or embezzling money are all considered theft.

If theft is committed within the UAE, the provisions of Federal Law Number 3 of 1987 of the UAE Penal Code are applied.

Types of Theft

The two categories of theft defined in the UAE Penal Code are aggravated theft and simple theft.

Theft crimes are classified as either “aggravated” or “simple” based on two main factors namely mental intent (“mens rea”) and criminal act (“actus reus”). However, the involuntary possession of stolen goods can also be considered as theft.

Articles 381 to 398 of the Penal Code provide the details of the punishments regarding these types of theft.

Simple theft is a misdemeanor that can lead to a minimum of 1 year imprisonment and/or monetary penalty. It is often categorized based on the place where the crime is committed, how the crime was done or who the victim is. Some cases of simple theft are those committed…

  1. In one of the worship places.
  2. In one of the inhabited or habitable places or its annexes.
  3. In one of the transport means or in a station, harbor or airport.
  4. Through climbing over the fence, breaking from outside, use of duplicated or genuine keys without their owners’ consent.
  5. By a person impersonating a public attribute or pretending that he is performing or in charge of a public service.
  6. By two or more people.
  7. On a wounded person during wartime.
  8. On property owned by a public authority and employees of ministries and government departments.
  9. On cattle or on carrying or riding animals.

 

Other circumstances of simple theft not falling under the above categories include:

  1. Interruption of information transmission or provision of any government service such as the misuse of telecommunication services or the removal of the power source of any device used to carry out such services.
  2. Use of vehicles such as cars or scooters belonging to another person without his or her consent. The corresponding punishment for such act would be a minimum of one year jail time and a fine not exceeding AED 10,000.
  3. Coercing a person to sign or cancel an agreement or a deed.

Aggravated Theft

Aggravated theft involves the use of deadly weapons and refers to acts that lead to felony such as murder.

For example, a person commits aggravated theft when he or she uses weapons and threats to force another person to surrender his or her property. Other cases are when a person falsely presents himself or herself as a public service agent, illegally enters a private property or engages in any other unlawful method to obtain a property belonging to another person.

Perpetrators of aggravated theft will face imprisonment and the duration varies depending on the type of crime committed. Some examples are given below:

  1. Maximum of 15 years imprisonment:
    • Use of weapons resulting in an injured victim
  2. 2 to 7 years or life imprisonment
    • Theft committed during the night
    • Use of arms
  3. 5 to 7 years imprisonment
    • Theft done by an employee during the term of his or her employment
  4. Life imprisonment
    • Involvement of 2 or more individuals
B2B Dispute dubai UAE

How to resolve Business to Business Dispute in Dubai UAE. Know the Legal Process

How to resolve Business to Business Dispute in Dubai UAE. Know the Legal Process

The Business Protection Department (BPD) is a newly established branch of the Department of Economic Development (DED) of Dubai, dedicated to resolving commercial disputes in the UAE. It was set up in answer to the growing need for a suitable method of assisting businesses with facing commercial issues raised against each other and arriving at an amicable settlement. This is a concern that cannot be overlooked as commercial disputes do not fall within the purview of the present dispute resolution authority, the Commercial Control and Consumer Protection Department (CCCPD), resulting in the aggravation of supposedly trivial matters arising among businesses.

The responsibilities of BPD are the provision of a “National Dispute Settlement Service” in Dubai and the dissemination of educational information to businesses.

As a dispute settlement service provider, BPD attends to the complaints of entities holding a Dubai business license. As an educational authority, BPD organizes workshops and conferences and even distribute literature to increase business literacy among Dubai-licensed entities.

BPD’s Jurisdiction

Being a sub-department of CCCPD, the jurisdiction of BPD is limited to disputes between businesses licensed in Dubai and having a minimum capital of AED 200,000/- and its only objective is to assist the Dubai Courts. Thus, it is considered as an Informal Resolution Body.

In line with this, BPD can mediate between international traders if they have a DED license or branch license in Dubai UAE.

Furthermore, the disputes addressed by BPD are only those relating to commercial concerns. Hence, disputes on insurance, banking, real estate or labor matters are not included.

Lastly, BPD does not serve as a tribunal as it was established to mediate between businesses licensed in Dubai in order for them arrive at acceptable agreements.

Procedure for Filing Complaint

There are three ways companies with a DED license or their representatives can file a complaint with BPD – through email, through calls or manually by visiting a DED branch of CCCPD. Supporting documents must be provided and a non-refundable fee of AED 2,020/- must be paid.

Once the complaint received, it will be reviewed by BPD lawyers who will determine if the case filed is within the jurisdiction of BPD. BPD lawyers will also assess if the dispute can be resolved by BPD acting as a mediator or referring the matter to another suitable authority.

Should the complaint be found acceptable by BPD arbitrators, the concerned persons will be contacted for the initial conference which can be conducted through phone call or a personal meeting. It is important to note that the parties are not required to be present in Dubai at the time of the Mediation Conference.

The processing time for case resolution is ten business working days, but there could be an extension based on the requirements and exigencies of the case.

Judgments and Appeals

Decisions made by BPD are final and cannot be revoked or amended by filing an appeal. However, the parties are not restricted by these decisions as they are discretionary and not binding. Both parties have the option to bring the matter before relevant judicial authorities.

The method of resolving disputes applied by BPD can be considered as necessary approach rather than a formal procedure. Reliable technical knowledge and an adept understanding of the disputes are the basis of the decisions passed. Furthermore, since the time of its establishment, BPD has successfully handled cases, but precedents are not involved in the decisions passed.

For businesses engaged in commercial activities, DED still remains as the main licensing authority in Dubai. BPD is a sub-department with the capacity to block or temporarily suspend the license of entities registered with DED. BPD also has the authority to impose penalties including fines on parties should they fail to attend a mediation conference or comply with the decisions passed by BPD after their acceptance of the mediation process.

Businesses can seek the help and advice of lawyers in Dubai UAE for a better understanding of the roles, jurisdiction and processes of BPD.

Bail and Guarantee in the UAE

Understanding Bail and Guarantee in the UAE

Understanding Bail and Guarantee in the UAE

Bail is defined as a set of pre-trial restrictions that are imposed against a person to ensure that he will comply with a judicial process. It is a conditional release with a promise to appear before the court when required to do so.

In the UAE, the bail may be in the form of a financial guarantee or personal guarantee. A financial guarantee is the simplest form of bail as it refers to the payment of a certain amount for temporary release, while the personal guarantee is a concept by which a person or an entity certifies the compliance of the accused with any court process. It is widely known that a breach of the conditions of the bail will forfeit the financial guarantee in favor of the government, but what about the personal guarantee?

In this jurisdiction, a personal guarantee is a guarantee of a third person, or in rare cases an entity, like the accused’s employer or consulate.

Upon the Court’s order, both the accused and the guarantor (if a personal guarantee is a third person) will sign the Bail Bond which will include the charge against the accused, the accused and the guarantor’s personal details, the penalty due in case of violation and the undertaking statement. The undertaking statement will normally include the statements 1) that the guarantor will be liable for the accused’s attendance in court, on the execution of the judgment and 2) that the guarantor accepts the liability as regards the aggrieved party, including any penalties, compensation and subsequent civil action.

The above-mentioned liability of the guarantor will only be terminated 1) once the judgment is executed against the accused, or 2) the accused is completely and irrevocably exonerated from the charge.

Gleaning from the above rules and procedure, the guarantor’s liability appears to be equal to that of the accused, hence, anyone who plans to act as one should be fully aware of his role and the conditions set in the Bail Bond and the Guarantee Bond.

 

 

time-bars uae law

Time-bars on claims and causes of action under UAE Law

Time-bars, time-limits, prescription or in other jurisdictions, the statute of limitations, are legal time restrictions used to deter the enforcement of claims.

In the United Arab Emirates and similarly to other countries, these time limits are not provided in one specific statutory reference, nevertheless and generally speaking, civil claims have a 15 year prescription period from the time of its existence, except those that have shorter or longer time limits set by particular legislation.

The following are some of the prescriptive periods provided under various legislation in the United Arab Emirates:

  1. A civil claim or a right bring suit against a party shall not be admissible after the lapse of 15 years without legal excuse;
  2. After the lapse of 15 years, a claim for recovery of revenue against a holder in bad faith may not be heard without legal excuse;
  3. Claim for remuneration for work performed or expenses incurred in connection with the profession of physicians, pharmacists, lawyers, engineers, experts, professors, teachers, and brokers may lapse after 5 years without legal excuse;
  4. Unpaid taxes and fees are not recoverable after 5 years subject to the provision of special laws;
  5. After 2 years, the rights of merchant or manufacturer to recover payment for items they supplied shall lapse, as well as the right of hotel and restaurant owners against their clients in relation to the costs of accommodation and food. Workers servant and wage earners shall also have a 2-year prescriptive period to collect unpaid wages and costs of supplies provided to them;
  6. As to construction disputes, the employer has right to claim against the contractor or consultant within 10 years from the delivery of work, however, the case must be brought to court within 3 years after the discovery of the defect.
  7. For obligations arising out or in connection with commercial activities between traders, the time-bar is 10 years;
  8. The liability arising from a harmful act or a tortious act must be brought to court within 3 years. The harmful act may be from an overt action or omission in violation of a law or contract.
  9. The claim against air carrier and its related entities must be made within 2 years following the arrival of the plane, or the date the plane supposed to arrive or the day the carriage service was stopped.
  10. The UAE Marine Code also provided specific time limits for action relevant to the carriage and marine services; 1 year for charter party claims; 2 years for pilotage and towage claims; 2 years in marine collision claims; and 2 years for marine insurance claims.

There are other specific time-bars in other laws in the UAE and in each Emirates but the list above are the ones that are prevailing in the current time.

Take note however that time bars do not extinguished the liability or the claim but merely impedes a person from enforcing the same.

loan agreement

Are interest provisions in a loan agreement valid in the Arab Region?

The topics regarding loan interest rates and usury in relation to lending activities in the Middle East Region are in themselves a slippery slope area and must be approached with the necessary caution. Given this delicate issue, one would question: are interests on loans illegal in the Arab Region.

To answer the question, it is best to understand first the belief behind the subject. According to Islamic teachings, interest and usury are based on the concept of “riba”, which literally means “excess or addition”, and the same is outlawed under the Sharia Law as grounded on the principle that profiting from lending money is considered “haram” or forbidden.

In today’s modern society, the prohibition against interest is generally applied to loans between individuals.

On the other hand, lending activities between two companies or between a corporate entity and an individual may not be included in the ambit of the prohibition.

Under UAE Law, the civil courts shall be the final arbiter of controversies regarding the validity or invalidity of interest clauses in a loan agreement. This goes without saying that any creditor may institute a case to collect on a loan agreement but it is within the discretionary powers of the court to accept these provisions relating to interest, surcharges, and penalties.

Noteworthy as well is the fact that a specific UAE Law deals with the obligation to pay interest and penalties. Under UAE Federal Law No. (18) of 1993 or the Commercial Transactions Law: it is stated under “Art. 76: A creditor is entitled to receive interest on a commercial loan as per the rate of interest stipulated in the contract. If such rate is not stated in the contract, it shall be calculated according to the rate of interest currently in the market at the time of dealing, provided that it shall not exceed 12% until full settlement.” and “Art. 88: Where the commercial obligation is a sum of money which was known when the obligation arose and the debtor delays payment thereof, he shall be bound to pay to the creditors as compensation for the delay, the interest fixed in Articles (76) and (77), unless otherwise agreed.”

Given these particular provisions that explicitly provide legal bases for the collection of interest and surcharges, a creditor is assured that he is protected under relevant legislation.

cyber bullying insulting law in dubai uae

Cyberbullying, Insulting, Hurtful comments in Social Media is a crime in Dubai UAE.

Under several UAE statutes, insulting someone, making fun of anyone or commenting hurtful things against somebody in social media is a crime in Dubai UAE that comes with a severe penalty.

As per UAE Federal Law No. 3 of 1987 (Penal Code) and Federal Law No. 5 of 2012 (Cyber Crimes Law) a person found to be liable of defaming another using social media, short messaging services or internet messaging applications may be imprisoned for a period up to two (2) years and can be meted with a fine of up to Three Million Dirhams depending on the gravity of the offense and the aggravating actions made in connection with the crime.

Aside from facing criminal persecution, a person may also be liable for damages especially if the recipient of the damaging comments or insult is a member of good standing in the community and such comments offended one’s reputation and social standing.

In one case, a tenant made some harmful and discriminatory comments against a landlord using the online messaging application WhatsApp, following an argument over the terms and conditions of the leased property. The landlord suffered severe anxiety and sleepless nights because of the comments and his reputation was also put in jeopardy because the message was sent to a third party.

After reviewing the incident, it was adjudged that the tenant is guilty of defamation under the Penal Code in relation to Cyber Crime Law. The tenant was found liable for damages for his discriminatory and insulting statements.

If you ever received similar comments or utterance resembling a crime under the aforementioned statutes, you may contact Al Reyami Advocates and Muhyealdeen International Legal Consultants and we will help you get the justice which you deserve.

Bounced Cheque Law Dubai UAE

Bounced Cheque in Dubai UAE – What you need to know

Rules and Regulations of bounced cheque Law in Dubai UAE.

Bank cheque is a tool used by individuals to secure funds, contract business and pay obligations, but not all of them have the ability to fund these cheques and the volume of bounced cheque cases have sky-rocketed over the years.

To address this ever-growing state of affairs, the UAE Government has established a set of rules to guide both the issuer and the recipient of Bounced Cheque.

There are several UAE Laws that can be utilized to protect the recipient of Bounced Cheque and they can be done either in the criminal or civil court. The recipient can file a complaint in the police station against the issuer and the case will be forwarded to the public prosecution and then to the criminal court (under the new rules, the public prosecution, in an effort to adjust with the volume of cases with low-value claims, can now issue criminal orders to sentence offenders of low-value bounced cheque to pay fines rather than endure jail time).

According to a recent study, the UAE Public Prosecution categorized low-value cases like the ones where the bounced cheque amounts less than AED 200,000 hence the only issuer of cheques with an amount more than AED 200,000 are doomed to be sentenced with a jail term.

The recipient can also institute a civil action against the issuer for the amount of the bounced cheque and if the issuer cannot pay the amount, he can be imprisoned for a period corresponding to the unpaid amount.

As for the issuers, particularly for low-value cheques, they can avoid imprisonment by simply paying the fine corresponding to the cheque amount; however, this does not absolve them from paying the obligation when the recipient opted to institute a civil action to collect the amount due.

For more detailed discussion of the intricacies of the Bounced Cheque Law in the UAE, you may contact Al Reyami Advocates and Muhyealdeen International Legal Consultants.

credit card fraud dubai uae lawyers

What is Credit Card Fraud and how to deal with it in Dubai UAE?

Credit card fraud is a white-collar crime in Dubai.  It is a type of theft or fraud involving another individual’s credit card, which is oftentimes stolen.  The stolen card is used to purchase items without the knowledge or approval of the rightful owner. It deprives businesses of billions of dollars per year. The law in the UAE looks to protect victims of credit card fraud, whether it is an individual, a corporation or a business. Dubai and UAE laws are specific and if convicted you can expect to receive very severe penalties.

Credit card fraud penalties may include a jail or prison sentence, fines, probation, and a mark on your criminal record for life. If you are being investigated, charged with or have been arrested for credit card fraud, it is important to contact a criminal defense lawyer immediately who has the knowledge and experience in handling credit card fraud cases in Dubai and throughout the UAE.

At Al Riyami Advocates and Muhyealdeen International Legal Consultants our criminal defense lawyers are extremely professional and committed when it comes to representing our clients. They have the skills and qualifications needed to represent your credit card fraud case.

We understand the seriousness of a credit card fraud charge. Contact The Al Riyami Advocates and Muhyealdeen International Legal Consultants today and let our criminal defense lawyers protect your rights and maintain your freedom.  Our lawyers and advocates will fight aggressively for you and will look to have the charges dismissed completely.

Contact us today to schedule your free initial consultation for your credit card fraud case. Our criminal defense lawyers will provide you with excellent representation and winning results.

Cyber Crime Law Dubai UAE

Internet Activities that are Cyber Crimes in Dubai UAE

Cyber Crimes in Dubai UAE

Internet Activities that are Cyber Crimes in Dubai UAE

In an effort to prevent the proliferation of internet crimes, UAE President His Highness Shaikh Khalifa bin Zayed Al Nahyan issued UAE Cybercrime Law No. 5 of 2012, detailing the country’s strict stand against computer-oriented crimes. According to the law, offenders will face hefty penalties such as long-term imprisonment or Dh 50,000 worth of fines, at the least. Severe offenses can be given a monetary penalty of up to Dh 3 million

The Cybercrime Law is implemented through a close monitoring of all internet activity in the UAE. This means that all activities are done through the internet, such as searching for, sharing, or downloading information, are all watched. Furthermore, content retrieval makes the deletion of files basically ineffective at erasing the existence of a certain content. Federal agencies have the capacity to recover deleted content and will definitely do so should that be required for cybercrime investigations. Warrants to take computers for investigative purposes can also be issued.

Some of the internet activities that can lead to legal proceedings are the following;

  • Illegal collection of information from or through the use of computers
  • Fraud – including Ponzi schemes, the illegal use of another person’s credit card, identity or other information, or falsification of information for investment purposes
  • Cyber threats
  • Pornography procurement, consumption, ownership, and dissemination

It is important to note that while the mandatory sentence for crimes related to pornography is only the minimum jail term, violators will have a lifetime label of “sex offender” which can affect their public reputation.