CIVIL CASE IN THE UAE FOR BOUNCED CHEQUE
Bounced cheque issues happens for many people knowingly or unknowingly. It mainly happens for business institutions. When the issuer pays the creditor in the form of a cheque and if the account doesn’t have enough balance when he or she presents the cheque in bank on the given date, the cheque bounces. This can lead to many legal activities in the UAE. Because UAE laws always respect one’s trust and credibility. Once it is broken, then it’s gone. Cheating never promotes in UAE.
The law in UAE for bounced cheques amends time to time regarding the situation. They have set up a limit and once it is crossed, then penalty should be paid for it and case will be filed on the issuer along with the travel ban. Because of this impact the issuers started being practical in keeping proper bank balance. But in some cases, people cheat others knowingly by giving bounced cheques. This misleads to many aftereffects thereafter.
Fine Amounts in UAE
The penalty is given for every bounced cheque in a legal manner if the case reaches the court. They are categorized as given below:
|Amount of bounced cheque||Fine Amount|
|DH 5,000 – DH 100,000||DH 5,000|
|DH 100,000 – DH 200,000||DH 10,000|
Consequences of bounced cheque
- When the issuer has paid the fine for drawing bounced cheque for an amount of lower than DH 200,000, then the complaint directs to the civil court for further claim.
- When the issuer fails to pay the fine of bounced cheque even after the jail release, then he or she either have to pay the amount or go back to jail for extra term.
- When the owner of the company absconds after presenting a bounced cheque, he or she can file a criminal complaint on the owner. By doing that way the owner will be included in the INTERPOL lists.
Procedure of conviction of cheque issuer
- The initial procedure is to register the complaint against the issuer in nearby police station after bouncing cheque.
- The case is then forwarded legally to public prosecution.
- Then the case reaches the court. Issuer will be directed to pay the fine amount or in the case if any investigation is needed, it is proceeded to criminal court.
- If proper evidence is found out, the criminal court convicts’ issuer either to pay the money or choose jail.
- The jail period ranges from 1-3 months to 3 years with a fine depending upon the amount of bounced cheque.
- Even after imprisonment, if the person fails to get the amount, then another complaint can be presented in civil court. Again, if proper evidence is found out, this might lead to another imprisonment and his assets can be attached to it.
Lawyers in the UAE
Bounced cheque cases are always difficult to deal with. We provide assistance and connect consumers with licensed lawyers who practices their duty from many law firms across the countries such as UAE, India and Middle East. You can get all legal advice Dubai and can find lawyer UAE. We hold a trustworthy lawyer to discuss and get free legal consultation in Dubai. We can give hundred percent assurance that you will get right information at the right time you need it. The facilities that we focus are to provide the details of laws and regulations, legal term explanations, professional articles and questions and answers. You can check more details in our website https://www.iadvise.live .
For the criminal activity, criminal punishments are necessary for not repeating it again. For small ventures bounced cheque amount of less than DH 200,000, there will not be any crucial punishments like imprisonment. They might be charged with a penalty amount only with a travel ban until the amount is paid. The main aim of these legal procedure are for the following:
- Taking proper decisions at right time.
- Respecting others time and duty.
- Applicability of equal and effective justice to all people.
- To enhance position of the country in competitiveness report globally.
- To reduce the number of criminal activities regarding the cheques.
- For proper care-taking of the bank balance.
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