What to Do If You Receive a Bounced Cheque in the UAE

Receiving a bounced cheque can be incredibly frustrating, especially when you're relying on that payment to cover your own obligations. Whether you're a landlord, a business owner, or just someone who’s been promised funds via cheque, it's important to know your legal rights in the UAE and how to take action effectively.

In this article, we’ll walk you through what to do if you’ve received a cheque that bounces, whether it’s due to insufficient funds or because the account has been closed.

Step 1: Understand Why the Cheque Bounced

The first step is to confirm why the cheque didn’t clear. Your bank will provide a return memo explaining the reason. The two most common scenarios are:

• Insufficient Funds: There wasn’t enough money in the issuer’s account at the time the cheque was presented.
• Closed Account: The account had already been closed before the cheque was issued or cleared.

Each situation is treated differently under UAE law, so understanding the reason will help you decide your next move.

Step 2: What Legal Action Can You Take?

If the Cheque Was Issued from a Closed Account/ Mismatched Signature.

This is considered a criminal matter in the UAE.

• Head to your nearest INJAZ center to file a formal complaint.
• The report will be automatically forwarded to the Public Prosecutor, who will begin legal proceedings.

Because issuing a cheque from a closed account is a serious offense, the person who wrote the cheque could face fines or even jail time, depending on the circumstances.

If the Cheque Bounced Due to Insufficient Funds

This falls under civil law and is no longer treated as a criminal offense in most cases, thanks to recent legal reforms.

• You can file a direct enforcement case through the Civil Court.
• Make sure to keep the bounced cheque and the return memo from the bank as evidence; they’re essential to your case.

Once the case is filed, the court can take steps like freezing the issuer’s assets, placing a travel ban, or ordering payment.

A Few Things to Keep in Mind

• UAE laws have changed in recent years to decriminalize some cheque bounce cases, particularly those related to insufficient funds. That means many cases can now be handled faster and more efficiently through the civil courts.
• Don’t wait too long. There are deadlines for filing cheque cases, so act promptly.
• Get legal advice. Even though the process is straightforward in many cases, having a lawyer can help ensure you file correctly and maximize your chances of recovering the funds.

Wrapping Up

No one likes chasing down a bounced cheque, but the law in the UAE is designed to protect recipients and offer clear legal pathways. Whether you’re dealing with a civil enforcement or a criminal complaint, taking the right steps early on can save you time, stress, and money.

If you’re dealing with a bounced cheque and aren’t sure where to start, feel free to reach out. Our legal team is here to guide you through the process, from Injaz filings to civil court enforcement.

Written by:

Fatehi Ahmed Shared | Ahkam Legal Consultancy