Nowadays cheque bounce in UAE became a very frequent problem, this problem is faced by the people during their period of stay in the country. In UAE it is cover under an umbrella of criminal law, legal penalties are very strict and from the financial point of view as well. Issue related to bouncing of the cheque may be highlighted at various commercial transactions, it including and not limited to exchanges, bank loans, property leasing or purchasing and individual transactions.
Complaints related to the bounced cheque are commonly due to the debtor’s failure regarding paying the due amount to the supplier (creditor) on a specific date set by both parties.
As per UAE Federal Law No. (3) Of 1987 Promulgating the Penal Code, criminal, as well as civil proceedings, might be ordered against the debtor. Lawyers in Dubai will be hired to proceed further in this legal method. It is getting very tougher now to operate financial activities using cheque as they might be faced the obstructions, specifically those who didn’t commit crime deliberately and might face the consequences.
Conviction: Criminal court/Civil court
Both criminal court and civil court operate separately. After the bounced cheque recovery the relevant complaint will be filled to public prosecution and then to the criminal court. Based on evidence provided by the complainant the criminal court may convict the issuer and might provide him two ways – deposit the money or face imprisonment.
Conversely, in case of breakdown to get cheque amount regardless of custody, the complainant should present his case to the civil court to claim the money along with documents and evidence to prove it. The civil court could then either demand the issuer to pay or face the jail term.
- After the completion of the sentenced jail
After the conviction of a bounced cheque, the initiator has served the jail term, might be set released after the specific imprisonment period. In case if complainant filed the same case in civil court, he is supposed to return back the amount or go to the hospital. If the person doesn’t have any pending amount or another case, he is free to leave the country after the recovery of impounded passport.
- Sign Authority of cheque
In case of the firm or joint company the cheque will be issued by the manager or partner, so criminal liability shall affect the individual who made signed the cheque. In case the bouncing of cheque occurs due to the intentionally done fraud by owners or shareholders, this kind of crime turns toward in a different way.
- Owners or managers abscond
If the company with which complainant deals with does not have enough funds to resolve the cheque’s value, he or she can submit the criminal case against the manager who signed the cheque, even if he or she is no more in the country. After the detailed decision, the questioner may ride in the concerned authority to include the manager’s name in Interpol’s wanted list.