BOUNCED CHEQUES LAW IN UAE | CHEQUES REGULATIONS IN UAE | BOUNCED CHEQUE CASE IN DUBAI UAE
A common predicament faced in the business realm is the risk of possessing dishonored cheques. For this reason, in order to protect and provide remedy against this act, UAE Federal Penal Code imposed criminal sanctions on those persons drawing bounced cheques. On Article 401 of Federal Law No. 3 of 1987 imposes penalty by way of fine or imprisonment – for an amount of not less that AED 1,000 and not more than AED 300,000 imprisonment of not less than one more and not more than three years may be decreed by the court, as the case may be.
Therefore, it is always been resorted to and have been a practical legal means for creditors to file a criminal complaint for the bounced cheque along with a civil case for debt recovery of the amount disputed for collection. And since it has been a common practice, this criminal courts dockets are heavily congested and clogged as a result. And in order to ease and strive to reduce the burden from police, public prosecutors and criminal courts and to tighten the gravity of the penalties in low value claims, UAE legislators have introduced and amended the provisions of the bounce cheque laws providing a speedy resolution by introducing “ONE DAY COURT” and revised the circumstances on the imprisonment aspect of bounced cheque.
ONE DAY COURT – this new system allows resolution of minor bounced cheque cases to be determined and decision to be issued within 24 hours. This is an effective way of facilitating UAE judicial system for speedy determination of minor cases and to strengthen laws of UAE for misdemeanor. Courts in the Emirates of ABU DHABI, DUBAI and RAS AL KHAIMA have been established successfully resolving minor bounced cheque cases.
On the other hand, the new law allows the criminal courts to impose only fine on simple crimes without imprisonment. To challenge the order of the court, objections may be filed within 7 days and this matter will be dealt with by the criminal court in the normal procedures as applicable. “SIMPLE CRIME” is categorized as per the cheque value of AED 200,000 or less and a fine of not exceeding AED 5,000 to AED 10,000 will be imposed. Cases for the aforesaid cheque value can be sentence by the Dubai Public Prosecution directly without any need of court procedure, however, the imposition shall be for a fine only and cannot exceed AED 5,000 to AED 10,000 as the case may be.
If you are looking to recover value of a bounced cheque with the help of debt collection lawyers? Our team of AL REYAMI ADVOCATES & MUHYEALDEEN INTERNATIONAL LEGAL CONSULTANTS can help you deal with all the cases concerning bounced cheques.