Brief Information on Cheque Bounce in UAE

1. Brief Information on Cheque Bounce in UAE A bounced cheque should be a cause for concern, but it should not make you panic. If you are victimised by someone who issued you such a cheque, you can file a civil case against them. However, keep in mind that cheque bounce in the UAE will not necessarily mean hefty fines or prison term. According to a top judge in the Dubai Courts, the legal order legislation has been approved by the Dubai Ruler via Law No. (1) of 2017. It should help boost the efficiency and lessen the workload of the judiciary, while enabling a faster litigation process. The legal order became effective in December 2017. It states that people whose cheques bounced but are less than Dh 200,000 can be prosecuted without the case being taken to the judges. The payment can be a maximum fine of Dh 10,000. However, this does not mean that the issuer of the cheque will be absolved when they pay the fine. If you are the recipient and dealing with a cheque bounce in the UAE, you can assert your rights and bring the case to civil court. This way, you may be entitled to some compensation. Bottom line, a cheque bounce in the UAE does not end with merely paying the fine. You should exercise your right and consider filing a civil case to help minimize further incidents. However, you have three years to file the case from the time the issuer paid the fine and were convicted. If you are dealing with a cheque bounce case in the UAE, it is essential to get yourself a qualified and experienced lawyer. If the civil court rules in your favour, a 12% interest rate may be granted to the cheque’s value starting from its date of issue, and the accused will be obligated to pay that amount. The court may also order the accused to pay for your legal charges.