Questions & Answers
Bounced cheque consequences: criminal penalty and civil case
Hi madam,
If a lot of cheques equal to AED 300,000 have been bounced and cases are filed and a travel ban imposed, what will be the punishments or consequences to be faced if caught?
I can't afford to pay back even 1,000 Dhs. Will I have to pay the full amount?
Please advise.
Thanks
BOUNCED CHEQUE
Dear Sir,
Yes, sir, you have to pay the amount.
AUTHORITY: When the cheque is returned as unpaid for any reason whatsoever, the aggrieved party/beneficiary of the cheque(s) files a complaint with the Public Prosecution or any authorized officer at police stations against the signatory of the dishonoured cheque.
INTERIM PUNISHMENT BY CRIMINAL COURT: Detention or a fine with travel ban shall be imposed on anyone who, in bad faith, gives a cheque without a sufficient balance.
The Public Prosecution Court decides the punishment, i.e., whether it should be a fine and/or detention, or maybe a bail “Kafala” either by depositing the value of the cheque or depositing the passport of the defaulter or another guarantor.
If bail is not accepted, the Public Prosecutor may order the imprisonment of the issuer of the bounced cheque until the court hears and decides on the case.
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.
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 judgment 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 judgment or his assets can be attached.
I trust the above answers your queries.
With best regards,
Mrs Khan
