Questions & Answers
A bank presents a bounced cheque to the police while the company is under liquidation
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!
Dear Client,
Good day!
Though the bank should not submit the cheque now because the matter is under liquidation, all the matters for debtors and creditors should be settled with the liquidation in the court.
However, if they have already presented the cheque in the court, bounced it and if they have filed already the case, then we need to attend the case because the amount is more than AED 250,000.
If the person is an expatriate, we can put a request of bail to the Public Prosecution and request or deposit one/two passports that we can present.
We can discuss with the Prosecutor regarding the matter. Please come to our office and provide all the details and documentation so we can advise you accordingly.
For further assistance, please feel free to contact us via phone or email.
Thank you!
