Does it matter whether the cheque was issued to an individual or a company?

Hi,

If the bounced cheque is issued to an individual, the legal recourse available is to file a criminal complaint with the police.

The police will then investigate the matter and if they find evidence of a bounced cheque, they will refer the case to the public prosecutor.

The public prosecutor will then file a criminal case against the issuer of the cheque. If found guilty, the issuer may face imprisonment and/or a fine.

If the bounced cheque is issued to a company, the legal recourse available is to file a civil case with the competent court.

The court will then issue a judgment ordering the issuer to pay the amount of the bounced cheque to the company.

If the issuer fails to comply with the court's judgment, the company can request the court to issue an execution order to enforce the judgment.

Cheque legal actions do not change based on the value, and there is no difference between individual and company cheques.

For more information, please call [-----------].

Bouncing a cheque in the UAE carries significant legal consequences, regardless of whether it was issued by an individual or a company.

Both civil and criminal actions are available for recourse, with variations based on the issuer and the cheque's value influencing how these actions are pursued.

Dear Questioner,

Thanks for your inquiry!

Regarding your inquiry about the legal recourse for a bounced cheque, I would like to provide you with the following information based on UAE law:

1. Criminal Liability for Bounced Cheques:

In the UAE, a bounced cheque is considered a criminal offense under the UAE Penal Code.

If the cheque is returned due to insufficient funds or because the account is closed, the issuer of the cheque can face criminal penalties, including fines or imprisonment, or both.

The severity of the punishment is typically determined based on the circumstances and whether the issuer acted with malicious intent.

2. Civil Liability:

In addition to criminal action, the payee (the person or company to whom the cheque was issued) has the right to file a civil claim to recover the amount of the bounced cheque.

This is done through the UAE courts, and the court may order the issuer to repay the amount along with possible damages.

3. Impact of the Recipient:

- Cheque Issued to an Individual:

If the cheque was issued to an individual, the individual can file a complaint with the police and take legal action to recover the debt.

- Cheque Issued to a Company:

Similarly, if the cheque was issued to a company, the company has the right to file a complaint with the authorities, and civil and criminal actions can be pursued.

4. Impact of the Cheque Value:

- Smaller Cheques (below AED 200,000):

The penalties for bouncing smaller cheques may include fines or imprisonment, but they are generally less severe than those for larger cheques.

- Larger Cheques (over AED 200,000):

For high-value cheques, the penalties can be more severe, and the payee can pursue civil actions more aggressively to recover the debt.

5. Next Steps:

If the cheque has been returned, I recommend the following steps:

- Confirm the Reason: Check with the bank regarding the specific reason for the cheque bounce (e.g., insufficient funds or closed account).

- File a Complaint: You have the right to file a complaint with the police. If the case is criminal, it will be referred to the public prosecutor for further investigation.

- Pursue Civil Action: You may also file a civil case to recover the amount. This process involves obtaining a court order for repayment and, if necessary, pursuing asset seizure or other enforcement methods.

Please let me know how you would like to proceed or if you need any assistance in filing a complaint or initiating legal action.

Best regards,

Mohammed Salah

Legal Consultant

Dear Client,

Thanks for your question! I hope you are doing well. I will assist you in this matter.

In the UAE, legal recourse for cheque bounce has been largely decriminalized. The primary approach is now civil litigation, where the recipient can file a lawsuit to recover the amount.

The cheque is considered an execution deed, allowing a direct approach to the Execution Division of UAE Courts.

Criminal charges may still apply in cases of deliberate fraud. The value of the cheque can impact the process, with larger amounts (over AED 200,000) potentially involving the public prosecutor.

Fines can range from AED 20,000 to AED 100,000. The law doesn't explicitly differentiate between cheques issued to individuals or companies, but special considerations may apply in business contexts or company liquidations.

Thanks & Regards,

ABDUL WAHIED

According to UAE law, the party affected by a bounced cheque can file a criminal complaint or a civil claim. It does not matter whether the cheque is issued to an individual or a company; the case is handled based on the cheque itself.

The cheque amount can influence the procedure, as smaller amounts may result in direct fines, while larger cases might be referred to court.

For more details, you can contact us via WhatsApp. We specialize in such cases and are ready to assist.

Dear questioner,

The value of the cheque will only change based on the actual amount to be paid to the party, and it will only be adjusted if the opposing party appears in the case and files an objection with evidence.

Until then, the cheque amount will be considered the actual claim. However, there are certain claims that a person can still pursue beyond the actual amount.

If you need further details, kindly share your WhatsApp number.

Hello, sir!

It does not matter if the cheque is for a person or a company. After issuing a memorandum to retrieve the cheque from the bank due to insufficient balance, we can open a cheque execution case and use it as an executive document to collect the amount and issue a travel ban on the cheque owner.

We can assist you with the matter. For further discussion, please share your WhatsApp number.

Dear Sir,

Greetings of the day,

In the UAE, cheque bounce is considered a criminal offense and is punishable by imprisonment and/or a fine.

The legal recourse available for cheque bounce is to file a criminal complaint with the police against the issuer of the bounced cheque.

The complaint should be filed within six months from the date of the cheque bounce. It does not matter if the cheque was issued to an individual or a company, the legal process remains the same.

However, if the cheque was issued to a company, the complaint can be filed against the company itself or against the person who signed the cheque on behalf of the company. The value of the cheque does not change the legal action or process.

Hello,

The legal recourse available in the UAE for cheque bounce is primarily civil, with potential criminal implications depending on the circumstances.

The legal process can be initiated by filing a complaint with the police or directly with the court. The value of the cheque may influence the severity of potential penalties, but it does not change the fundamental legal action or process.

Whether the cheque is issued to an individual or a company also does not significantly alter the legal process, although the specific procedures may vary slightly.

If you need further clarification, kindly share your WhatsApp number.