- Legal Articles
- Ask Elhais
November 05, 2020|
Technology is overruling every sector of the economy, yet most commercial transactions are completed with the usage of cheques to keep a record of financial transactions, especially in UAE. It is pointless to say that issuing and accepting cheques are a part and parcel of our commercial front, yet we face serious troubles when dealing with cheques.
We all talk about what is a cheque, what happens when it is dishonoured and how to seek legal redress in the event a cheque is bounced. However, we still feel the lack of importance given to dishonoured cheques issued by mistake or the details added in the cheques were mistakenly added wrong, or such cheques were never supposed to be released for payments. Criminal Lawyers of Dubai will try their best to discuss such eventualities in this particular article for our readers to be very much aware of before issuing any cheque.
Previously there was a fine or imprisonment on any individual who issued a cheque which was later dishonoured or bounced by the bank due to either insufficient balance or withdrawing the balance post issuing the cheque or wrongfully signing the cheque or if he orders the bank to not release the amount.
The United Arab Emirates issued Federal Decree Number 14 of 2020 (Issued on 27 Sep 2020) which amended and added new articles to the UAE Commercial Transaction Law No. 18 of 1993 and the UAE Penal Code. The new changes have come into force from January 2022 onwards and one of the most significant changes introduced is the limited scope of criminalization for returned cheques on account of insufficient funds.
Narrowed Criminality: The new amendments bring in narrowed criminality in matters concerning cheques. The provision related to criminal sanctions for insufficiency of funds in the UAE Penal Code has been deleted, effectively meaning that there will be no criminal liability if the cheque has bounced because of insufficiency of funds. Pursuant to the new changes, only specified actions will invite criminal action, including but not limited to the following:
Intentionally falsifying cheques
Instances of fraud: This covers circumstances wherein the issuer instructs the respective bank, not the pay the cheque amount
Providing counterfeit cheques
Withdrawing the account balance before the date of the cheque encashment to prevent the cheque from being cleared.
It is common to find the provisions concerning filing a criminal case or civil case for a cheque bounce, yet it is uncommon to find provisions governing circumstances where cheques were issued with good faith yet were bounced due to some typographical or other error. This situation gives the receiver a benefit of the doubt to register the criminal case and harass the issuer. Even though the law is unclear on such a situation, the Best Criminal Lawyers of Dubai may assist you in legally representing you before the relevant criminal court and presenting solid evidence and provisions of the law to establish the fact that the cheque was indeed issued with good faith and it was unknown to the issuer that the cheque will be bounced.
It is pertinent to understand that Lawyers of Dubai may still assist you in legal representation, it is for the court to decide the applicable law and circumstances of the matter before issuing a judgment. Therefore, it is vital to follow the said guidelines issued by the bank before issuing a cheque to avoid any legal consequences in the future.
Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.
Your email address will not be published. Required fields are marked *
I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.
Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.
Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.
He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.
I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.
Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.