Questions & Answers
Questions & Answers
3 available 3 • View allConsequences of failure to pay a commercial loan 
3
Q: Hello Sir,
I have a company and have outstanding loans worth AED 1.9 Million.
We have been paying regularly for over 2 years now, but I have not been able to pay my last EMI. The next one is due soon but I don't have the provision to pay as the business is very dull.
What are the consequences if I cannot pay?

May 24, 2018
2098
Acting against a bounced security cheque given to business partner
1
Q: Hi Sir,
I have been working with a company as a partner on the trade licence and working for them as an employee.
I am not in the company anymore, however, during the business with them I gave a blank cheque as a security for the investment and I gave it based on trust.
Now, he wanted to take personal revenge and deposited my cheque by putting an amount of AED 1 Million on that and the cheque bounced.
I don't know what to do now and I need advise on this, please.

May 20, 2018
1617
Consequences of a bounced security cheque after failing to pay loan installments
2
Q: Good day,
Look forward to your kind legal advice for my query below.
I am a resident of Dubai (Indian national) and I have an outstanding loan of AED 120000 with ADCB bank and they had bounced my security cheque on 15.11.2017 with amount mentioning AED 1400000 as I have defaulted last 3 EMI's (including November).
I tried my best by consulting bank's collection executives saying I can pay 1 EMI right now and remaining in next few days but no use.
What will be the lead time for them filing a case against me?
Can I walk out of police station by paying fine? If yes, how much?
If sentenced, then how many days/months will I be in jail?
My residence visa expired on 17.11.2017 and company said they will renew in next few days. Will it affect me coming out by surrendering passport?
Can I change job & visa if I have a case against me open?
Looking forward to your kind advice and suggestions so I can plan accordingly.
Many Thanks,
HK

Nov 27, 2017
5944
Legal blog
1 available 1 • View allجريمة الشيك بدون رصيد ما بين الوضع الحالي والوضع المستجد 19
يلعب الشيك دوراً مهماً في الحياة اليومية سواء في ميدان المعاملات التجارية أو في ميدان المعلامات المدنية باعتباره أداة وفاء والتزام تحل محل النقود في التعامل بين الافراد. ونظراً لهذه الأهمية فقد أصبح أكثر الأوراق التجارية انتشاراً وتداولاً بين الناس، على الرغم من حداثته نوعاً ما. فالشيك لم يبق كما كان في بداية عهده أداة لسحب الودائع المصرفية لحساب الساحب ذاته، بل أصبح أداة وفاء تحل محل النقود سواء على النطاق الداخلي بالنسبة للمعاملات التي يقوم بها الأفراد داخل الدولة فحسب وزادت أهميته.
Jun 3, 2021
11283
Laws & Regulations
3 available 3 • View allFederal 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
47897
Federal 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
33000
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
3528

Other answers by
28 28 answers •
View allLegal requirements for starting business by a minor in the UAE 0
I am planning to start my business in retail. I am a 16-year-old Emirati national and I have full approval from my parents.
What legal requirements must I obtain and what laws should I follow?
May 3, 2020
3412
Using the trade license of an existing company to start business 0
If I am looking to use the general trading license of an existing individual to start my business and creating my company under his license, then what are the things I should watch out for to protect myself?
Oct 3, 2018
1588
Seeking legal assistance for drafting a Merchant Agreement 0
I am seeking a law firm/agency in Dubai that can provide the services to draft a Merchant Agreement template contractually, according to our company business model.
Oct 3, 2018
721
Documents required for the registration of a sole trader 0
How to register a sole trader? What documents are needed?
Oct 3, 2018
497
Non-payment of share value and claiming the shares back 0
My company is located in Dubai as an LLC. We have two shareholders,
1. UAE national shareholder with 95%
2. A foreign shareholder with 5%
The UAE national shareholder transferred this 5% shares to the foreign shareholder through a share sales agreement, which was notarized at the notary public in Dubai and submitted it to the DED to amend the trade license etc. This happened in 2014.
But till this date, the foreign shareholder did not pay the value of 5% shares to the UAE national shareholder or to the company.
Also, the foreign shareholder was not actively involved with the company's operation and as per Article 17 of the Commercial Companies Law:
"2. The partner may not contribute in work rendered unless he is a joint partner. The contribution of the partner may not consist of his having reputation or influence."
Under these circumstances, is it possible for the UAE national shareholder to request from the court to cancel the 5% shares of the foreign shareholder and transfer back to him?
Oct 4, 2018
1224
Get quotes from lawyers
Find the right lawyer for your legal needs.
Submit your request and get multiple
competitive offers from
qualified lawyers.
Popular Q&A
View all Looking for something else?
Ask for advice from a lawyer