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bounced cheque in dubai law

How to pay fine for a bounced cheque in Dubai

What do you need to know about paying a fine for a bounced cheque in Dubai? One of the most widely used ways for financial transactions is the bank cheque. A bounced cheque can be mentioned as a bad cheque or dishonored cheque, and it can result in legal action against the issuer, civil and criminal. If your check bounces, you have to pay a fine for that bounced cheque in Dubai; we have best lawyers in dubai

What is a bounced cheque?

Cheques in Dubai are commonly used for personal and corporate transactions. The most accepted means of rent payment in Dubai. Most of the time, their acceptability is never a problem; they do have the potential to go wrong. So there is very few cheque bounce case in Dubai. What does a bounced cheque mean? When a cheque you issued bounces is returned or is dishonored, you may face civil or penal action, simply a fine for a bounced cheque in Dubai. Now the question arises, when does a cheque bounce in Dubai?

The causes of a cheque bounce are.

  • On the day of issue, if there are no funds available in an amount equal to or greater than the amount of the cheque is one reason you can face bounced cheques in Dubai.
  • Mismatched signatures, not mentioned or incorrect dates, and overwritten or scrawled text are examples of technical faults that are one reason you can face bounced cheques in Dubai.
  • Closure of the bank account before the encashment of the issued cheque is why you can face bounced cheques in Dubai.
  • The bank has been instructed to hold payment on the cheque is another reason you can face bounced cheques in Dubai.

What is the new law regarding cheque bounce in UAE?

The law surrounding how to pay fines for a bounced cheque in Dubai is that according to the last change to the rule on the bounced cheque, the drawer (an individual who draws the cheque) would be fined a minimum of 1,000 AED and sentenced to at least a month in prison in the UAE, depending on the amount of the cheque, as the bounced cheque penalty in Dubai. With the recent change in 2021, any individual who endorses or issuer of a cheque in the name, knowing that there are insufficient funds or that the cheque cannot be withdrawn, will be penalized with 10% of the cheque value or a minimum of 1,000 AED. The penalty will be doubled if the same offense is committed again.

There will be a six-month to a one-year term for the tax dodgers if they do not comply with the modification in case of bounced cheque in Dubai. The law of Article 642 currently specifies that the court has the right to publish the judgment in two local newspapers and the person’s profile (like his name, occupation, and residence in English and Arabic language). The tax dodger will be responsible for the costs of publication.

According to a recent change in the law related to bounced cheques in Dubai, the bank must pay half of the sum and discharge the rest. If the cheque bounces, the beneficiary can go to court and get the money balance.

How to check a cheque bounce case?

The way to check the bounced cheque in Dubai is that cheque writers must verify that they have enough finances to cover each cheque they write. They can take several actions to prevent cheques from bouncing.

  1. Be aware of how much balance you have
  2. Maintain a buffer.
  3. Keep the account balance at all times.
  4. Effective communication with the recipient.

How to file a case for cheque bounce?

The best method to handle the bounced cheque in Dubai is to pay the amount of the bounced cheque as soon as possible before the matter goes to court. However, it is possible that you do not have the ability or the amount to pay the total. It is necessary and better to prepare a proof of your innocence and evidence of your inability to pay in such situations. The court will allow you to show that you did not deliver a faulty cheque with malicious intent.

It is a great idea to seek legal advice at this point of bounced cheque in Dubai to make sure you’re aware of all your alternatives. Our lawyers in dubai will develop quick solutions and resolve this matter for you instantly without hassle.

The best ways to file a case for a bounced cheque are:

  • Use the Dubai Police app or website to file a police complaint.
  • You will be given a complaint number and a visit date by the Dubai Police.
  • The police will notify the drawer and summon them to the station to record their statement once the bounced cheque is verified and other details.
  • Unless the drawer settles the cheque amount right away, the bounced cheque complaint will be referred to the Dubai Public Prosecution.
  • For cases involving cheque amounts less than AED 200,000, the Public Prosecution in Dubai has exclusive jurisdiction.
  • The Dubai Public Prosecution will impose a fine and provide the drawer a reasonable period to reimburse the payee the amount of the cheque.
  • If the drawer fails to pay on one or both charges, the case is taken to the Criminal Court, which can result in incarceration, a travel ban, and additional fines.
  • Any cases of bounced cheques in Dubai worth more than AED 200,000 are dealt with directly by the criminal courts.

How to pay a fine for a bounced cheque in Dubai?

In the UAE, a payee who receives a bounced cheque has the right to pursue legal action against the drawer. That individual can file a civil lawsuit and initiate criminal procedures against the drawer in the UAE.

With one of the most recent changes in 2021, there shall be fined a minimum of 10% of the cheque value and a minimum of AED 1,000 for anyone who approves or issues a cheque in the identity of another knowing insufficient funds or that the cheque is not withdraw able.

In the end, if you want to know how to pay the fine for the bounced cheque in Dubai, the best way to do this is to deliver the cheque amount as soon as possible before the matter goes to court

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