Q: I am running a small company and I have a bounced cheque from my customer who really cheated me and he's not returning my goods; and now, he himself is asking me to file a case against him. What are the possibilities to recover my amount of AED 64000, as this has brought a great impact on my business stability?

Q: Hi. One of my customers had taken some products on credit and gave me two cheques of AED 300000 (total AED 600K). At the due date of the cheque, the customer asked not to put the cheques in the bank as he’s short of money. When I asked for money he made some excuses. I fear he may run away from the UAE. What should I do for such a case, where I had not put the cheque in the bank for a transaction as I fear if he notices the bounced cheque he escapes from the UAE?

Q: Dear Mrs Khan, I have recently received a Post Dated Bank Cheque from one of my new clients, the cheque date is Thursday 19th Apr 2018. Today, I called this client to find out that they are not answering calls, and when I went to their office I found it closed and many of their suppliers in the corridors complaining about their Bank Cheques that were bounced back (rejected). The owner of this company seems to have already left the UAE and none of his employees is answering the phone. So most probably the bank cheque that they gave me (AED 57250) will bounce back Thursday. So I want to start taking action now. I sold them 10000 boxes of 15 Kg lemon, which they stored in a third-party cold storeroom in Dubai. I went and found that the lemon is still there. Please, could you tell me how can I legally get back my lemon as I'm 100% sure I will not be paid? Thanks in advance and please feel to ask should you need more details.

Q: I have a cheque of 7.500 AED due on the 15th of this month November and I don't have the complete amount to pay! What can I do?

Q: I work for a company in Egypt and we had a contracted partnership with a company in the UAE. They haven't paid us for a very long time. We invoiced them and they keep telling us that they're settling some things and will wire us the delayed payment, but this has been going on for several months now and they are pretty much ignoring us. We're thinking of taking legal action but would like to know how things are done in the UAE. Thank you!

Q: Dear Sir/Madam, We (a Sharjah-based company) had business relations with Ajman Free Zone-based company. Several post-dated cheques issued by the company (against goods purchased from us) bounced and we filed a police case for the same. The owner of the company paid fines and escaped to India sometime last year. We know his Indian residence and whereabouts. How can we force him to pay or move legally to recover the dues? Kindly advice!

Q: I’m a manufacturer from India. We supplied our product to a company in Dubai. They are not making our payment and delaying it.

In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.

An interview-format article covering the topic of how to increase chances of getting your invoices paid in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

يلعب الشيك دوراً مهماً في الحياة اليومية سواء في ميدان المعاملات التجارية أو في ميدان المعلامات المدنية باعتباره أداة وفاء والتزام تحل محل النقود في التعامل بين الافراد. ونظراً لهذه الأهمية فقد أصبح أكثر الأوراق التجارية انتشاراً وتداولاً بين الناس، على الرغم من حداثته نوعاً ما. فالشيك لم يبق كما كان في بداية عهده أداة لسحب الودائع المصرفية لحساب الساحب ذاته، بل أصبح أداة وفاء تحل محل النقود سواء على النطاق الداخلي بالنسبة للمعاملات التي يقوم بها الأفراد داخل الدولة فحسب وزادت أهميته.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

The law promulgates UAE Civil Procedures Code (Civil Procedure Law) which governs civil procedures in the United Arab Emirates, including the prosecution before the courts, litigation and execution.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.