Questions & Answers
Liability of a bounced cheque issuer and recovery of the cheque amount
I am a trader, my clients provide me PDC cheques (post dated).
As per new law if my clients bounce the cheque & I make a case against them, they won't be imprisoned, they would have to pay fine.
What about my payment, how would I recover my bill payments? Will they still be liable to pay my dues? Also, will they be under a travel ban?
CRIMINAL COURT JUDGEMENT
Upon the completion of the court assessment of the case and establishing grounds against the issuer of the bounced cheque, the Court may order to pay a penalty and/or serve a jail term. The jail term can be between 1-3 months - up to 3 years, or/and a fine that usually varies from AED 1,000 to AED 30,000 based on the amount of the bounced cheque.
One must understand that a Criminal case is purely a punishment for a criminal act i.e. issuing a Cheque without sufficient balance. You can also ask the Court to impose a travel ban on the issuer of the bounced cheque.
CIVIL CASE
To RECOVER THE CHEQUE AMOUNT, the aggrieved party may make a civil claim for the payment of the bounced cheque. The court conducting the criminal trial may transfer the civil claim to the civil court for determination.
If the Civil Court passes a judgement against the issuer of the cheque TO PAY THE CHEQUE AMOUNT, the issuer of the cheque shall pay the same, otherwise he might be subjected to another imprisonment if he fails to implement the court’s judgement or his assets can be attached.
