The Story of a Bounced Cheque in Dubai

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Cheque bounce/dishonour happens when the cheque is introduced before the bank for submission, is returned either because of deficient balance or the signatures on the cheque does not coordinate with the bank's record or for multiple other reasons.
The story of a bounced cheque seems to be more tragic in UAE as compared to most other countries as discussed by Criminal Lawyers of Dubai multiple times on various platforms.  A Criminal Action A cheque if issued in UAE is accounted for a civil case against the issuer, however, it is a criminal act primarily.
This is in reference to Article 401 of the Federal Law number 3 of 1987 (UAE Penal Code) imposing criminal penalties for the issuer of a bounced cheque. To record a criminal case for a dishonoured cheque, the recipient must start the procedure by officially registering a grievance with the police of the specific emirate against the issuer of the cheque.
In Dubai, the recipient can benefit the administration of the Dubai Police mobile application in registering such grievances without stepping foot in a station. With the issuance of Law number 1 of 2017 in the Emirate of Dubai known as Criminal Law Order, Dubai Public Prosecutor has been empowered to entertain criminal cases for cheque bounce until a certain amount, without referring the matters before the court authorities.
This authority is until the dishonoured cheques amount equal to or less than AED 200,000. According to this, the wrongdoers of bobbed checks will be culpable with the accompanying fines: Amount less than AED 50,000 is AED2,000 Cheque amount Between AED50,000 – AED100,000 is AED5,000 Cheque amounting Between AED100,000 – AED200,000 is AED10,000 A Civil Action In UAE and almost all other countries, the criminal courts and civil courts are independent bodies of the judicial system, hence, a case for cheque bounce is a criminal as well as a civil action against the issuer of the cheque.
It is important to understand that the fines issued by the criminal act for wrongdoing of issuing a dishonoured cheque will be submitted to the government and in order to obtain the cheque amount, the receiver of the cheque is obliged to register a civil case against the other party before the relevant civil courts of Dubai. In view of the proof and realities introduced by the parties, the civil court will give a judgment obliging the defaulter/issuer of the cheque to pay a sum comparable to the estimation of the cheque along with the requisite amount of interest as decided by the courts of Dubai.
The civil procedure of Dubai is certainly different from other countries and thus, requires an expert Civil Lawyer of Dubai to legally represent you before the court authorities. Source: Free Articles from ArticlesFactory.com Dr.
Hassan Elhais, along with his team of legal consultants and prominent local lawyers across the UAE, has made a name for himself as a renowned specialist in the fields of civil law, construction law, banking law, criminal law, family law, inheritance law, and arbitration..