Bounced cheque lawyer
Bounced check in the United Arab Emirates can be more than just a financial issue:
Returned or bounced cheque:
Bounced cheque can be referred to a civil and criminal case under UAE law
That is to say, its very important, that citizens, residents, expatriates know their rights and responsibilities to avoid such difficult legal situation.
What Is The Cheque:
A cheque is a financial paper :
written, dated, and signed that orders a bank to pay a specific amount of money to the bearer and guarantees ( a certain amount of money )
Above all, cheque Issued from the drawer and specifying the due amount, which shall be paid to the beneficiary or its bearer on the specific date, after submitting to the drawee bank.
Legal definition of cheque:
Moreover, Article No. (483) of the Commercial Transactions Law in the UAE defines that :
“A cheque is a commercial paper that includes an order issued from the drawer to the drawee bank.
To pay on the day indicated ” the issuance date ” , a certain amount of money to the permission of a third person, who is the beneficiary or its bearer.”
Therefore, Article-No. (632) of the Commercial Transactions Law:
Gives the bearer of the cheque, the power to take legal measures against the drawer of the drawer cheque,
Or any party responsible for that if the check is presented during the maturity period, and has not been paid.
Cheque Parties Are The Followings:
- The drawer: who issued the cheque in order to pay the beneficiary or bearer the mentioned sum.
- The drawee: Bank and the one to whom the order is directed to pay the amount specified in the cheque.
- The beneficiary is the person who will receive the amount.
whereas, the name of this beneficiary may be mentioned in person or for his permission, and it may be the bearer of the cheque.
The Cheque Includes The Following Elements:
The date, payee name, the cheque amount, the drawer signature.
Moreover, note to write the reason for writing the cheque.
Cheques Are Used In The Following Commercial Transactions:
Commercial and personal transaction:
- Financial transactions between companies ( exchange services – sale and purchase transactions – pay invoices of due sum).
- During, Banks transaction (bank loans).
- Real estate and contracting (renting housing and real estate – buying apartments, shops, or any property in general).
- Also, a cheque is used in personal transactions, between individuals (debts – sale and purchase transactions).
Bounced cheque :
Bounced cheque issues may arise in different commercial and business transactions:
such as companies ” exchanges, bank loans, property rents or purchases, and individual transaction “
A Cheque returned factors:
Most Factors That Can Lead To A Cheque Being Dishonoured:
- False signature on the cheque or other technical errors
- An order to the bank from drawer or else to refrain from making the payment
- specifically, Insufficient funds on the date of issuance of the cheque;
- also, when Close the bank account before encashment of the check
Bounced Cheque Penalties:
- The amount of fine differs between ( AED 2,000 and AED 10,000 )
so, depending on the cheque value thus, Cheque amount is not exceeding 200,000 AED
- It should be noted that no prison may be imposed on the offender once he paid the fine.
The Criminal And Civil Case relating to The Bounced Cheque
Police complaint about bounced cheque
At this time, When a cheque is dishonoured, the victim or complainant files a police complaint.
after that, the case refers to the public prosecution and fine will be imposed.
In this stage, and if the cheque exceeds DHS 200,000 , or if the case requires further investigation
Civil case procedure
The case will refer to the criminal court and the complainant can go after to a civil court to file a civil case in order to claim his due amount.
According to the UAE Federal Penal Code No. 3 of 1987 :
The creditor or beneficiary of the cheque has the right:
To file a criminal case and a civil case, against the check writer when the cheque return\ bounced from the Bank, due to insufficient funds ( not enough money), which prevents the payment collection of the value of that cheque.
Very Important That Drawer Of Cheque ensure that:
Therefore, it is very important that drawer of cheque ensure that:
- Firstly, ensure enough money in his bank account before issuing cheques and delivering them
- Secondly, he must deposit a sufficient amount of money in his bank account to cover the amount due mentioned in the cheque full and on the specified date
The misuse of a guarantee cheque
According to our criminal lawyers, in dealing with cases of bounced cheques,
It becomes clear that most of the defendants in cases of cheques without balance was due and as a result, to the misuse of a guarantee cheque
when used as guarantee and not as a means of fulfilment of the due amount. They submit as security for future payment.
Guarantee cheque definition:
Usually, the debtor issue what is called a guarantee cheque or a trust receipt.
In order to, ensure the creditor’s right, and the agreement is to return the check as soon as the amount due will be paid.
While, dealing with a commercial transaction, debt or other transactions.
The cheque holder’s objection:
that he is issuing as security check only, and that part of the amount or the cheque has been paid, is unacceptable and hereof will result in prosecution.
Returned cheque is offense:
Under UAE law, a cheque without balance is a misdemeanor punishable ( imprisonment or a fine ), depending on the nature of the case and the amount.
most importantly, the return of any cheque is considered a criminal offense in the UAE , its penalties are strict.
Guarantee cheques are issued:
specifically, in financial dealings between companies, bank loans, debts, buying or renting real estate, purchases, and even commercial or personal transactions between individuals.
Best bounced cheque lawyer in abu dhabi :
Where criminal lawyers in Dr Abdulla Bin Yarouf law firm emphasize the risk of dealing with such bank cheques.
and, those cheques are often subjected to legal accountability and consequently, punishment in the absence of financial fulfilment.
Bounced cheque Dubai Emirate ,
His Highness Sheikh Mohammed bin Rashid Al Maktoum; has declared to forgive the accused:
from the penalty in the offense of giving a cheque in bad faith, and the offence of non-payment in both cases, where the sentence issued against him (in absentia or in presence).
Consequently, when the accused person adheres to pay or submit a waiver from the victim.
Best law firms in abu dhabi
Dr. Abdallah Bin Yarouf Advocates And Legal Consultants In Abu Dhabi And Dubai is one of:
the best law firms in providing the best legal solutions
certainly, help you face the problem of bounced cheque, and prevent you from falling prey to such fraud.
which has severe harm to your business and often stands in the way of your personal loans and debt collection.
most importantly, Our reputed criminal lawyer ensures that following up the civil lawsuit, to collect your money due of bounced cheque in order to safeguard your rights and money.
Above all, The competent lawyer will also answer all your legal inquiries if you want to know more details about:
- Procedures for filing bounced cheque case
- The limitation period for the check without balance
- How to submit a cheque complaint without balance
- Penalty for dealing with security checks
- Bounced Check Solutions
- Bounced Cheque fraud penalty
- Procedures for filing civil lawsuits to claim the due amount of bounced cheque
- the penalty and fines of bounced cheque, according to the value of each cheque
And, any other inquiries will be answered from a specialized and experienced criminal attorney
So, Do not hesitate to communicate or ask your concern via WhatsApp or email, and you will be answered directly
' Dr Abdalla Bin Yarouf Advocates And Legal Consultants ', Are highly qualified firm in Abu Dhabi and Dubai
certainly, Prepared to assist you with seeking recovery from these kinds of offenders, and the fraud they perpetrate. Don't let your business take the loss.
And beyond that, The legal team pursue civil actions and uses every resource available to pursue your right
In conclusion, to collect the debt owed under a cheque written with insufficient funds.
further more, for any enquiries about the returned cheque, Schedule your appointment with us by calling +971 50 733 4500 or visiting our online contact page.
Our firm has as flexible hours for appointments.
so, Let us pursue your rights and remedies.
- Office 203, 2nd Floor, Al Fara'a Group Tower, Al Nahyan camp Street - Abu Dhabi - UAE.