Q: Dear Sir/Madam, I have a loan from a bank that has 2 EMIs/payments pending. For that, they have already presented the security cheque (100K) and a case is already filed at Al Barsha police station. Now they are threatening to drop another cheque for (189K) under the same loan and file a civil case. They are holding all my previous cheques and did not return them while a new payment plan was issued. Is it right for a bank to drop as many security cheques against one product/loan?

Q: I issued a security cheque to my company owner for another employee loan who did not have a bank account at that time. Now, the same employee has a bank account and a cheque book and he has issued cheque against his loan to the company, to which I issued cheque before. At the back of both cheques (Issued by me and another employee) mentioned that cheques are only for security purpose against the employee loan. My owner is refusing to return back my cheque. What should I do? She is now holding 2 security deposit cheques against 1 single amount of loan.

Q: I had entered into a private loan contract with an individual. The security cheque he issued bounced when I tried to cash it against the non-payment of the loan. I have filed a complaint with the police about a month ago, however, I am told that it is currently awaiting judgment. He's been operating this way with a few other people as well, issuing bad cheques as security for loans taken. Q1. Is it normal for judgement on a bounced cheque to take so long? What can I do to request to expedite the judgement? Q2. What action can be taken to report the individual and the modus operandi so that others can be protected from falling prey in the future? Q3. I’m sure there are many more people who may be in the same situation as me and two others who I have found. How can I legally try and publicize the case to get others to come forward as witnesses?

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.

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.

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.