Question: I received a cheque from somebody and I submitted it to my bank within six months of receiving it. However, it has been returned due to insufficient funds. I know that I could file a criminal or commercial case but is there a time limit when it comes to filing such cases?
Answer: You have the right to file a criminal case within five years from the date of receiving the cheque. This is per article no 20 of the Criminal Procedures Law of 1992 and its amendments. But, unfortunately, you do not have the same amount of time to file a commercial case as that would have to be filed within two years against the person who signed and delivered you the cheque, in accordance with article no 638/1 of the Commercial Transactions Law of 1993 and its amendments. There are also some factors that could reduce the period of time a case can be filed within, depending on the case, so it is wise to evaluate your options with your lawyer.
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. 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 in order to prevent the cheque from being cleared.
Reference: Federal Decree Number 14 of 2020 amending the UAE Commercial Transaction Law No. 18 of 1993.
Hi,
I had a cheque bounce case on 1st
Jan 2019 and i paid fine and case
was closed.Now whats is the maximum
time period to file a civil case
against to me? I heared from
someone that,after criminal case
maximum duration is 3 year yo file
a civil case, it it correct?
Please advice.
Shamsudheen
2020-10-27
Please
be informed that writing a cheque
with the intent to dishonor it is a
criminal offense. Moreover, the
creditor may also file a civil case
to recover the outstanding amount.
To discuss your legal options, you
may meet with a legal consultant.
Kindly let us know if you would
like to avail of our consultation
service.
Should you have any questions,
please do not hesitate to contact
us.
Dr.
Hassan Elhais
I had issued a cheque in Singapore
for 200000 USD for some work to be
done. He did not do the work and at
the same time deposited the same
and it bounced. This was in sept
2019.What is the legal procedure in
Singapore? He has not sent any
notice for the same. There is a MOU
signed for this work and this
cheque is given for the woj in
MOU.
My question is
1. What is the time limit he can
file a case in case he wants to do
the same. In india you have to file
in 30 days if the cheque being
bounced.
2. What does the law in Singapore
says for this.
K.K.Menon
2020-08-12
Unfortunately, we will not be able
to provide you advise in this
matter as this is outside of our
jurisdiction to assist. We can only
provide advise on UAE laws and not
on the laws of Singapore. Please
feel free to contact us if you have
any future enquiry that we can
assist you with.
Dr.
Hassan Elhais
i have 60k credit in my credit card
i want closed this my comany cut
may slarary 50% cant continue to
pay .. i have cash 25k come to
thier office they cant help me they
need a 60k cash or they wil file a
case to me a civil case
noel
2019-12-31
Thank
you for your comments. With regards
to your outstanding liability
towards your bank, you may pursue a
settlement with your bank and the
acceptance of any offer either by
the bank or yourself in pursuant of
the settlement efforts is totally
at the discretion of the parties.
Based on whether or not any cheque
issued by you and in the possession
of the bank has bounced, a criminal
and a civil case may be filed
against you.
Dr.
Hassan Elhais
I have problem with the cheques,i
give to someone a blank check with
my sign for guarantee check only.he
deposited my check he write a big
amount 90,000aed but i only
borrowed 50,000aed he filed me a
case in police and I already
bailed,now our case is in the
court,now he kept calling me to
have settlement and he is
threatening me that he is local,he
will file me a civil case.i tell
him i will pay only for the money i
take but he dont want he want the
money he put in that check.i have
evidence in my bank account that he
deposited only 50,000aed.what
should i do?i go again to
jail?thankyou
Ivz
2019-11-19
In
furtherance to your matter below,
kindly be informed that all
criminal cases for cheques bounce
in Dubai and are under AED 200,000
mostly only involves fine and no
imprisonment. Further, I advise you
to meet one of our legal
consultants to discuss the civil
case.
Please feel free to contact us if
you wish to schedule a meeting with
one of our lawyers and I would be
happy to arrange it for you.
Dr.
Hassan Elhais
i have bounced cheque issued by a
owner of proprietorship company,
dated 20.09.2018 for 40000, can i
file a case against him in fast
track court in dubai ? as cheque
bounced in dubai, how much time can
it take and is therre any fees ? i
have to pay to court ?
charles
2019-09-26
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/- You can also
file a civil case to claim the
outstanding amount. Accordingly,
you may avail the services of a
lawyer to handle your matter.
Should you need further assistance,
please do not hesitate to contact
us.
Dr.
Hassan Elhais
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