Question: I took out a bank loan and gave them a cheque as a guarantee. Now though, I am not able to pay the loan and the bank is threatening to file a case against me. What are the potential cases they could file and what would be the expected outcome?
Answer: If the bank tries to cash the cheque and there are insufficient funds, they may file a case against you for a bounced cheque, under article 401 of the UAE Criminal Procedures Law, which states that "detention or a fine shall be imposed upon anyone who, in bad faith, gives a cheque without a sufficient and drawable balance or who, after giving a cheque, withdraws all or part of the balance, making the balance insufficient for settlement of the cheque, or if he orders a drawee not to cash a cheque or makes or signs the cheque in a manner that prevents it from being cashed". Also, the bank may request that the court imposes provisional attachment on your property, per article 252 of the above law. If a judge grants this provisional attachment, it may be imposed without you knowing about it, under article 259 of the same law. In addition, the bank has the right to file for a travel ban on you and make a commercial claim of the cheque value in addition to interest at 12 per cent from the date of the cheque, plus court charges and attorney fees.
UPDATE:
In 2020, 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. According 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.
Dr. Hassan Elhais publishes analysis of UAE criminal law matters, including financial-crime allegations, money laundering and complex financial transactions. For readers researching a financial crime lawyer in Dubai, his writing offers insight into the legal questions surrounding these topics. Explore his published work and practice-area information for further context.
Comments
i had a court agreement to pay an
amount of 218000 due on 20200june
and now iam paying 3000 per moth as
he agreedd by verbal and
transferring to his account .did he
can go to the court and file a case
against me with my cheque bounce
for amount more that the court
agreement/
thomas
2021-05-04
Whereas
if you have an agreement signed
before the judge, the other party
may directly proceed with an
execution case. Otherwise, he may
file a civil case or an order on
petition based on the nature of the
documents to claim from you.
If you would like to discuss the
matter further, I request you to
schedule a consultation meeting
with us and accordingly we will
guide you on your legal position
and how best to proceed.
Should you have any questions,
please do not hesitate to contact
us.
Dr.
Hassan Elhais
Dear Sir,
my c.card limit is 20000 AED if im
not able to pay when final
judgement come to pay me c.card
limit or as mentioned on the cheque
amount?? around 60000 AED
hameed
2020-04-06
Please
be informed that the act of writing
a cheque, which would eventually be
dishonored is considered a crime.
If the criminal case is registered
within the Emirate of Dubai, the
Prosecution may pass a decision to
punish the accused with a fine
should the amount of the dishonored
cheque not exceed AED200,000/- Such
rules may also be applicable in
other Emirates subject to the
discretion of the Prosecution.
Moreover, the opposite party may
still file a civil case to claim
the outstanding amount. Failure to
pay outstanding liabilities can,
among others, result in travel
restrictions by the court.
Therefore, it is advisable to avail
the services of a lawyer to handle
your matter.
Should you have any questions,
please do not hesitate to contact
us.
Dr.
Hassan Elhais
Leave a Comment
Your email address will not be published. Required fields are marked *
I had the pleasure of consulting with Dr. Hassan AlHais, and I must say the entire experience was exceptional.The reception and meeting area were impeccably clean, quiet, and managed to the highest standards, creating a welcoming and professional atmosphere. View testimonial
Abdullah Client
Verified
His unwavering dedication to his clients, willingness to tackle challenging cases, and belief in the fundamental principles of justice highlight his role as both a guardian and advocate. Dr. Hassan's integrity stands as a testament to his professionalism. Additionally, his foresight and meticulous case preparation, anticipating courtroom dynamics and opposition strategies, not only secure victories but also garner the respect of clients and peers alike. View testimonial
Salam Amir Client
Verified
Dr. Hassan is brilliant. I have been working with him for more than 15 years. His work product and legal advice are of the highest caliber. Competent. Professional. Knowledgeable. Analytical and strategic thinker. Honest. Without exaggerating, Dr. Hassan is the best family litigator in the UAE. Highly recommend.
Abed Awad Client
Verified
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.
Raphael Lauria Manager, FME General Trading
Verified
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.
Dr. Massimo Hakim Chairman, Italian Style
Verified
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.
Manish Gupta CEO, EDS FZE
Verified
Best lawyer in Dubai.
Aigul Beishembieva Client
Verified
Happy with the team of Mr. Hassan Elhais. Knowledgeable on UAE laws and i got the advice i was looking for. Highly recommended!
Mukesh Pandey Client
Verified
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.
James Horsley British Client
Verified
Their team of attorneys are not only highly knowledgeable and professional but also incredibly attentive to the needs of the client. They will provide you with a top-notch service every step of the way. The staffs are friendly, responsive, and always kept you informed about the progress of your case. I highly recommend this for anyone in need of legal assistance.
May Ann Adrias Client
Verified
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
H.H. Sheikh Saeed Bin Mohammed Hashir Al Maktoum
Verified
We are extremely happy to note that you won all three cases which we entrusted to you. Your superb handling ensured the result in our favour. We very much appreciate this and feel grateful to you. You not only won the cases, but managed to get the judgement executed without much delay..View testimonial
Chandru Malkani Client
Verified
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.
Zhuo Liu Client
Verified
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.
Luis Pozueco Client
Verified
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.
Bassam Yamout Director, JM Metal Trading LCC
Verified
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
British Client
Verified
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Asma Mattar Manager, Italian Style
Verified
Knowing Dr. Hassan for years now, I can say confidently he is the most trustworthy person I ever met, not only because he is very knowledgeable, smart and has a very high acumen, but also he is very dedicated and buying his clients and interest first..View testimonial
Ahmed Higazy Client
Verified
I have had nothing but exceptional work from Dr. Hassan, all my family and business related legal work goes to him. Having been in and out of Dubai since 2004 and having wasted money on bad legal advice elsewhere, I feel VERY qualified to say that he is absolutely the best in the UAE. Thank you Hassan.
Rich Firth Client
Verified
Dr. Hassan is the best lawyer in UAE I have dealt with, he is very professional and has consistently upheld the highest standards of professional ethics, ensuring that my best interests were always at the forefront. I wholeheartedly recommend Dr. Hassan to anyone..View testimonial
Hossam ElDeeb Client
Verified
Ex UK Senior management now running a busy business in Dubai that requires bulletproof corporate legal contracts that are customised to our unique needs. This includes everything from HR contracts to complex sales agreements. Dr. Hassan has undoubtedly proven to be the best legal expert we have encountered here..View testimonial
If you would like to discuss the matter further, I request you to schedule a consultation meeting with us and accordingly we will guide you on your legal position and how best to proceed.
Should you have any questions, please do not hesitate to contact us. Dr. Hassan Elhais
Should you have any questions, please do not hesitate to contact us. Dr. Hassan Elhais