Questions & Answers
Questions & Answers
9 available 9 • View allDebt recovery case from a company owner who fled the country
3
Q: We are an LLC company in Dubai, an India resident. We sold goods to a general trading company in Dubai.
He paid 30 % cash and a balance in a post-dated cheque of AED 63000. We presented the cheque two times, and the cheque bounced 2 times.
We have gone to the office many times but the office is closed and the person ran away to India.
As we are also Indian, after a court case in Dubai can we file a case against the person in India?

Nov 27, 2018
1466
Commencement of legal proceedings to recover commercial dues
1
Q: Hello Mr Hari,
Can you kindly inform me what is the procedure for a cheque bounce case?
One of my friends has an equipment rental services; he had received a cheque of AED 300000.00 from a company.
How can he file a case against the cheque, and what would be the % or lawyer fee after collection?
Thanks
Ms C.

May 17, 2019
385
Recovering an amount lended to investors with security cheques


0
Q: I had given a cash loan of 1.2 million to a restaurant owner in Dubai for 1 year, on a PDC security.
They served me some profit for almost a year, and when the date of repayment came, he started giving me different dates.
I bounced the cheques and complained in Dubai police, the police have opened a case and put a travel ban on the signing authority.
While running out of the country, the lady who was the signing authority was arrested and sent to the police station and from there to the public prosecution.
They used some links and skipped out of the country although the company and other partners are still in Dubai.
Please advise me what should be done to recover the amount, as the signing authority ran away.



Jun 11, 2019
566
Director's responsibility for rental cheques upon bankruptcy/liquidation
3
Q: Good Day,
We are an LLC based in Fujairah. Due to COVID, we have run out of money and will need to declare bankruptcy or liquidate it. However, when all rental cheques were handed over, they were from my personal account (as we took a loan to start the business and did not have a bank account for the business yet).
These cheques are still in the possession of the lessor. It would be possible to replace the cheques but I will still need to personally sign each cheque, as I am the director of the LLC.
If we liquidate, would I be held responsible for the payment of the outstanding rent?
Can I end up in jail if I don't pay?
Is this not exactly why an LLC is established?
What will be my responsibilities as we are not getting cash into the business?

Jul 5, 2020
705
Who is responsible for the company bounced cheques if the signatory leaves?
2
Q: Hello Madam,
My question is on a company cheque issued by the previous signatory (last 3 years new signatory, the previous signatory is absconding, not now in license).
If this cheque is returned, is it the responsibility of the new signatory or the company?

Mar 11, 2021
1854
A bank presents a bounced cheque to the police while the company is under liquidation
1
Q: For a business loan, a cheque has been issued on behalf of the company and is signed by its manager for 557000/-.
The company now is under liquidation (an order is issued by the court). Can the bank present the cheque to the police once it bounced, subsequent to the company's failure to pay the installments?
If yes, under the above circumstances, what happens?
How much fine it may attract from the prosecution other than a civil case by the Bank?
Kindly advise!

Mar 25, 2021
535
A debtor is not responsive. What to do with the cheques?


1
Q: I have invested a substantial amount of money in a private school in Sharjah. It is owned and managed by my former department head. I am a "loan investor" of the school which was established in 2017.
They issued me 2 cheques which are due on Sept. 17, 2021. When I contacted her (my former head), she said that I should wait until the end of the month of September.
The problem now is, she is no longer responding to my calls or messages through FB Messenger. Even calls from my brother who is residing in Dubai are also denied.
She is ignoring my effort to talk to her. What advice can you give me in this regard?
By the way, I am residing now in Bangkok, Thailand. The cheques issued and the contract are in the name of my brother since he is residing in Dubai.
Please give me some advice on how to deal with this concern.
Thank you!



Oct 10, 2021
315
Personal insolvency procedures in case of losing job and defaulting on credit cards
1
Q: My service has been terminated by the company as it is stopping its operations in the UAE.
I have 2 credit cards that have a due amount of nearly 130K for which I keep paying the EMI so far. Meanwhile, I don't have any job offer in my hand.
How can I manage in case I have to leave the country, or if not, in a position to pay the due immediately?

Oct 30, 2021
387
How can I settle the amount post-dated cheques with suppliers if I cannot pay due to losses?
0
Q: Hi,
I had issued 3 PDC cheques worth AED 181,000 each and 4 PDC cheques worth 111,000 each to 2 different suppliers. I suffered some losses and hence was unable to pay. The company is in my wife's name.
I need some time to settle the debt but they don't want to give me more time. How can I safeguard my company and family?
Also is there any law where I can get time to restructure my company unit and then can get protection against all debt-related legal implications?

Jul 12, 2022
203
Legal blog
4 available 4 • View allFailing to Honour Bounced Cheques in Loans and Other Transactions 8
An interview-format article covering the topic of loans and bounced cheques in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.
Jan 15, 2020
7028
Bounced Cheques in the UAE: What You Need to Know in 2024 291
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.
Oct 15, 2024
221898
Bankruptcy Law and Personal Insolvency Law 10
This article will briefly explain about the Personal Insolvency Law of 2019 and Bankruptcy Law of 2016 in the UAE. Previously, there was only the Bankruptcy Law that was available for the commercial companies, merchants, traders, and similar persons who were suffering from the financial crisis but now individuals have such options available as well especially considering the effects of COVID-19. Both laws were issued to assist distressed persons and entities by offering them settlement options.
Oct 1, 2020
4901
Filing for Bankruptcy and Insolvency in the UAE: What You Need to Know 8
Dealing with financial difficulties can be overwhelming, but the UAE provides a comprehensive legal framework to manage bankruptcy and insolvency in a way that benefits both debtors and creditors. Understanding these laws and how they work can make a huge difference in navigating the process successfully.
Nov 12, 2024
310
Laws & Regulations
3 available 3 • View allFederal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
32998
Federal Law No. (3) of 1987 Promulgating the Penal Code 29
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.
Dec 8, 1987
47894
Federal Decree Law No. (14) of 2020 Amending Certain Provisions of the Federal Law No. (18) of 1993 Concerning the Commercial Transactions Law 4
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.
Sep 27, 2020
3527

Other answers by
213 213 answers •
View allWhen to claim an inheritance in Dubai while being abroad and which law is applied ? 0
Dear sir/madam,
I would like someone to be honest with me. I am in the UK. How long have I got to claim inheritance in Dubai?
I was reading in the Gulf News that the laws of the country of the deceased at the time of death can be applied regarding the will.
Is this true or false? I am really looking for these two questions to be answered first. Can anyone help me with this, please?
Mar 25, 2022
404
I seek to cancel a purchased property and get refund for delay in handover 0
Dear Advocate Sweta Singh,
I am from India and in Sep 2018, I purchased an apartment in a hotel. The hotel has not been completed and the delay is more than a year.
They have not paid any compensation as per the contract, nor do they talk about it. I have paid more than 80% in installments and paying it regularly.
Please help me, guide me on how to cancel the deal and get a full refund, or any other way which helps me recover my investment.
Regards
Mar 9, 2022
339
Is it possible to apply a will issued in South Africa in the UAE? 0
Dear questioner,
My father (Muslim) has passed away in South Africa. He leaves behind 4 children, his wife (our mother) and his own mother.
He had a will for South Africa in which, I (oldest son) am executor. The will does state that it encompasses all property and assets wherever they may be.
He has various properties and assets in the UAE. My questions are:
1. Does his will have power in the UAE or will it be divided by Sharia?
2. What documents are required to wind up his estate?
3. What is the wind-up process within the UAE?
Feb 22, 2022
459
How to access the bank account of my son who passed away recently? 0
My son tragically died in Dubai and his salary has been paid into a UAE HSBC bank account.
My daughter also lives in Dubai and has an HSBC account.
How can I access my Son's bank account, please?
I live in the UK.
Feb 17, 2022
358
How can we access the bank account of a deceased person? 0
My uncle died 2 weeks ago in one of the private hospitals here in Dubai.
We have already completed everything regarding the repatriation of his body with the help of his employer and his remains are already sent back to our home country last week.
He used to give me an access of his ATM card before and I tried to access it just few days ago and I found out that there is some amount of money left on his bank account.
I am aware that he has some pending bank loan requests before he died, so I am afraid that amount might be the reason of such big amount.
Being the only family member of my deceased uncle, what should I do in order to make sure that the amount is from his savings and not from his bank loans?
In case the amount is proved to be his own savings, is there any chance for me to get the authorization to claim that amount from the bank to be used by his family?
He has a wife with 3 kids back home.
Thanks a lot in advance.
Feb 10, 2022
267

Premium
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1578 1578 answers •
View allHow much time do I have to start paying after the verdict in the appeal court? 0
Hello,
How much time do I have to start paying after the verdict in the appeal court?
And what's the probability of freezing my account or traffic file if I’m paying?
Apr 11, 2025
69
Can I put a financial guarantee to remove a travel ban in a rental case at RDC? 0
I used to work as a manager in a company, and my name was removed by the Dubai court of execution.
Now, on the paid rent, I got a travel ban, which I objected to at RDC.
The RDC accepted and gave the next hearing date, as I will have all the court papers.
Is there any way to remove the travel ban, as the objections I made at the execution hearing are next month, almost one month?
Is there any way you can put the amount as a deposit, and once the objection case is over, you can take it back?
Apr 9, 2025
82
How can you reach a settlement to avoid legal action by the bank if you lose job and can not repay your loan? 0
My brother lost his job in the UAE 8 months ago and has a debt of AED 170,000 to a bank.
He is finding it extremely difficult to make monthly loan payments to the bank, as he has been unable to find a job even after 8 months.
What options does he have to reduce/settle his bank debt without having restrictions on him, like a travel ban, etc?
Please help him find the best possible solution considering his current financial situation.
Apr 9, 2025
108
My husband and I are Canadian Muslims and he passed away in the UAE. How to open an inheritance case? 0
Hi there,
My husband and I are Muslims. My husband passed away recently.
We have a Canadian will, but I understand that it won’t be honored as I am named the sole beneficiary, and that does not align with Sharia laws in the UAE. He was not a UAE resident but had a small apartment with no Will in the UAE.
We have 3 children. I am planning to go to Dubai to start an inheritance case. I don’t know the exact order of events and what needs to be done first.
1) Do I initiate anything from overseas before making travel plans to Dubai, or do I start once I arrive in Dubai?
Mind you, we cannot afford to stay in Dubai for too long, as the kids have school.
2) Do I need a lawyer, or can this be done by myself?
3) I understand all foreign documents need to be authenticated before presenting them to the court. But I don’t know at what stage I would need these documents authenticated.
I would appreciate it if you could provide a breakdown of the steps, the forms that are needed, and where I can find them.
Thank you
Mar 27, 2025
60
Can the employer ask me for visa expenses if I resign after completing the probation period? 0
I am working in a Dubai private company and I have completed six months of the probation period. Now, I have decided to resign due to a physical problem.
My MOHRE contract mentions one month's notice, and I am willing to serve the notice period, but the employer asks for visa expenses.
My passport was also retained by the employer. How can I cancel my visa by chance?
I filed a complaint at the labour court. How many days does it take to get a verdict?
Apr 7, 2025
155

Other answers by
81 81 answers •
View allCan a company change the holidays of the UAE for expat employees to their country's holidays? 0
Hello team,
I have a Chinese team in a Dubai-based company, they are working in Dubai itself.
Can we exempt them from Dubai national holidays and provide holidays related to China national holidays?
Can you please suggest something?
Jan 4, 2023
304
What should you do when you get a police call without knowing the reason? 0
I got a call from police yesterday said I should come today to give a statement they didn’t tell me what it’s about.
I’m freaking out, all I know is I owe Etisalat. Apart from that, I don’t have any issues here. Can you help?
Feb 13, 2021
2534
Partner's liability while other partners are outside the country 0
My wife is a partner in a civil company in Dubai. The company has 4 partners; 3 of them are out of the country.
The company bought things for AED 50k which was not paid back and now they filed a case.
What will be the liability for my wife? she is not the manager of the company.
What will be my wife's liability for that company?
Feb 4, 2021
500
Trade license and banking legality for any kind of trading activity 0
Hi Sudhanshu,
Hope you are well.
What are my rights for establishing an e-com business meant for trading outside the UAE.
1) Do I still need the UAE trade license?
2) Can I receive payments in the UAE banks through international online business since I live in the UAE and would be here for some more time?
Best regards,
A.
May 19, 2020
495
Liability of an LLC managing director through a power of attorney 0
Hello,
I would love to ask for advice.
What is the liability of managing director, who is not mentioned on the trade license but has a power of attorney to act on behalf of the owner, sign contracts and documentation, deal with banks and UAE authorities, tax returns...etc?
We are talking about an LLC company in Dubai.
And would you recommend directors and offices liability insurance?
Thank you for your help.
May 8, 2020
1362

Other answers by
313 313 answers •
View allCan the landlord request the tenant to pay the chiller in the middle of the contract? 0
I live in Dubai Marina, and the landlord claimed that according to new Dubai Land regulations, the chiller now has to be paid by the person occupying the apartment.
Even though my contract says that the landlord should pay the chiller, they want to implement this mid-contract.
I understand that the terms upon renewal will be renegotiated, but on what grounds can they implement the change mid-contract?
Does a new DLD regulation precede a tenancy contract? Moreover, I am receiving a disconnection notice from the chiller company due to non-payment.
What can I do if this happens?
Please advise.
Mar 23, 2022
1572
Can I travel with a non-paid telecom bill in the UAE if my visa is canceled? 0
Can I travel with a non-paid telecom bill in the UAE if my visa is canceled?
Feb 16, 2023
718
Does the new property owner have to sign a new contract with the tenant? 0
Hi,
I'm a new landlord of the property which is already rented.
Kindly advise, do we have to sign a new tenancy contract with the tenant for the remaining period? And who will pay the cost of Ejari?
Feb 16, 2023
2534
Cleaner's resignation with 30-day notice in incomplete contract 0
Hello,
Good afternoon!
My friend works as a cleaner for a cleaning company and she now wants to resign with a 30-day notice. However, she has not completed the two-year contract and has only served for 16 months.
Additionally, she has not taken any vacation leave. The sad part is that when she signed the offer letter, she did not receive a copy of it and only signed it.
I would be very grateful if you could let me know if she would have to pay or if her boss has the right to not accept the resignation if the notice period mentioned in the offer letter is more than a month.
Her boss has not provided her with any kind of proof that she can use in the future if anything happens.
Feb 13, 2023
541
The ownership of a code of a web application 0
Hello,
I represent a tech-based marketplace company registered in a Freezone, in the UAE.
This is in regards to the UAE's law regarding the ownership of code when there is no clause mentioned in the agreement. One of our products (web application) is being developed by an agency in the UAE.
While we do have agreements in place, there is no clause regarding ownership of code. In the situation mentioned above, I've heard that the ownership of code either goes to the author or the agency that employed the author. Is this true?
Your assistance and help would be of great help.
Sep 7, 2021
306
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