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Filling a blank cheque issued for a security purpose and get it bounced

Hi,

I just want to know about the cheque bounce penalty. The cheque amount is 220,000/-.

I have given a blank cheque for a security purpose to someone but unfortunately, he filled 220,000 and presented it to my account and it bounced. Now, what should I do?

Please let me know!

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Al Safar & Partners Advocates & Legal Consultants
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11 Aug 2020, 10:24

Dear client,

Good day!

Actually, a cheque is a punishable offense in the UAE - Cheque Bouncing. Cheques are a non-negotiable instrument and if you don't honor the non-negotiable instrument, it is a punishable offense for a criminal case.

However, if it is a security cheque given to the other party, therefore, you can request and you can submit proof that it's a security cheque.

Also, if they file a case against you, we can put a penalty, and later on, we can pay the penalty. As long as they file a civil case, we'll explain our points of view about what is a security cheque and what is not a payable amount.

It's only a guarantee amount and the other party breached your trust by submitting this cheque to the police.

For further assistance, please feel free to contact us via phone or email.

Thank you!

11 Aug 2020, 11:31

How much penalty?

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