Bounced cheques in UAE, What you need to know

We represent a strong legal ally for individuals and businesses navigating the complexities of cheque related disputes.

Don’t Let Bounced Cheques Derail Your Finances

Expertise in Bounced Cheque Laws

Bounced cheques present significant legal challenges and can lead to severe consequences for all parties involved in signing or endorsing a cheque. At Mai Alfalasi Advocates and Legal Consultancy, we represent a strong legal ally for individuals and businesses navigating the complexities of cheque-related disputes. Whether you are the signatory or the beneficiary of a bounced cheque, our seasoned legal team is equipped to provide comprehensive support and strategic solutions tailored to your unique circumstances.

Expertise in Amicable Resolutions

At Mai Alfalasi Advocates and Legal Consultancy, we believe that not all disputes need to end in court. We are also highly experienced in negotiating and reaching amicable resolutions between parties involved in this type of dispute. Our approach aims to resolve conflicts efficiently and effectively, minimizing the emotional and financial strain on our clients. By facilitating negotiations and mediation, we help both drawers and beneficiaries arrive at mutually agreeable solutions that avoid the need for protracted legal battles.

Our Commitment

Our dedication to excellence in handling bounced cheque laws and proceedings is reflected in our firm’s mission: to provide high-quality, client-focused legal services. We understand the stress and uncertainty that legal disputes can bring, and we are here to alleviate those burdens by offering clear, informed, and compassionate guidance.

Integrity

We uphold the highest ethical standards, maintain honesty and transparency and prioritize clients’
best interests.

Excellence

We are committed to delivering top-quality service and continuously strive for improvement.

Teamwork

We collaborate – leveraging our team’s diverse skills and perspectives to achieve desired results.

Contact Us

For more information on how Mai Alfalasi Advocates and Legal Consultancy can assist you with your bounced cheque case, please contact us today on our landline +971 4 223 0666 or by email at info@maaflegal.ae. Our team of experienced attorneys is here to provide the legal support and expertise you need to navigate your legal challenges successfully.

1. Criminalization & Financial Penalties

As of January 2, 2022, bounced cheques due to insufficient funds are no longer considered a criminal offense. This doesn’t mean there are no consequences. Financial penalties still apply:

The drawer (the person who issued the cheque) may face a fine ranging from AED 2,000 to AED 10,000.
The beneficiary (the person who the bounced cheque is drawn in its favor) can still pursue civil claims for the cheque amount.

Criminal cases may arise if:

The drawer instructs the bank not to cash the cheque before the due date.
The account is closed, or the available balance is withdrawn before the cheque’s due date.
The cheque is deliberately signed inaccurately.

2. Enforcement Proceedings

While criminal charges are no longer automatic, when a cheque is returned unpaid for certain reasons, for example “insufficient balance in account”, the beneficiary is entitled to pursue direct enforcement proceedings.

The beneficiary may file an execution case seeking to force recover the face value of the cheque.
The proceeding will entitle the beneficiary to secure court orders to freeze and recover cash held in the drawer’s bank accounts, attach and force sale real estate properties owned by the drawer, attach and force sale drawers’ shares listed in market, ban drawer from traveling and take many other actions to recover assets held by the drawer or to apply pressure on the drawer.

3. Civil Proceeding

The recipient may resort to civil court to obtain a Payment Order against the drawer and each endorser of a cheque to pay its face value:

The beneficiary may file a petition with the competent court asking to grant a payment order.
The court issues its order to compel the drawer to pay the face value of the cheque.
If the beneficiary fails to comply, the drawer may enforce the Payment Order resorting to the enforcement proceedings elaborated above.

Our expert team should be able to guide and assist beneficiaries of unpaid cheques to file and proceed with any of the available options and to advise on best course of action to accelerate recovery and minimize cost, including resorting to out of court settlement discussions with the obligors.

At MAAF Legal, we aim to build a space where clients are heard and supported, and where legal professionals in the industry find a home for learning and enjoying while practicing. We aim to create a school of thought for adding knowledge, exchanging ideas and delivering success. We remain independent and honest when dealing with our clients, our colleagues or our counterparts. Our integrity is our strength and our clients’ trust are our goal.

1203, Green Tower, Baniyas Street,
Deira, Dubai, United Arab Emirates

Phone. +971 4 223 0666
Whatsapp. +971 50 208 9986
Email. info@maaflegal.ae