Q: What should I do if a case has been filed against me for a bounced cheque? The bank is not agreeing to give me any settlement. I am also about to lose my job. I tried settling with the bank again, I told them that I can pay AED 8000, provided that they will give me a written agreement of restructuring and lift the police case against me and my guarantor. They wouldn't budge at all. I came to know that I have a case in the court already. What would be the best way to deal with this?

Q: Can the bounced cheque case be dismissed by the claimant if the amount was paid, without visiting the police station by the guilty party? The amount was AED 8600.

Q: I got a call from Jebel Ali police station as I have a bounced cheque there for 60k with FGB and they want me to go there this morning. I have been told there is a new policy that allows bounced cheques cases to be resolved at the police station. When the police officer called me he assured me that it can be resolved there within the day. Is that true? What will happen when I go there?

س: السلام عليكم، الاستئناف والدفع بوجود شرط التحكيم بعد صدور الحكم في المطالبة ضد المدَّعَى عليه غيابيًا في لائحة الاستئناف. حيث أن المدَّعِي قام بتسوية ثم استلم شيكات ثم رفع الدعوى وصدر له حكم واحتفظ بالشيكات بالرغم من أن التسوية باتفاقية لاحقة لاتفاقية القضية المدنية والمشروطة بعقد التحكيم. هل يمكن إضافة طلب استرداد الشيكات من المدَّعِي؟ أم القيام بدعوى منفصلة؟

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.

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.

As the civil and commercial transactions in the UAE have been growing rapidly, and due to replacing cash with other financial instruments such as cheques for big amounts of money, this had caused some hiccups at times leading to criminal and civil consequences on the person who defaults on fulfilling obligations.

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.

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.

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.