Initiating proceedings against the issuer of bounced cheques

Good afternoon,

We suggest you file separate cases on each individual cheque, this is to ascertain that our case is stronger and the liability on the other party is higher.

If you file a single case for all the cheques bounced there would be one single judgement.

We also advise you to proceed with the civil case, directly, during and/ or after the criminal case.

Article 401 of the Penal Code of the UAE Federal Penal Code 1987 dishonoured cheques continue to be a crime under the UAE law.

Article (401) of the Penal Code of the UAE Federal Penal Code 1987:

"Detention or a fine shall be imposed upon anyone who, in bad faith, gives a draft (cheque) without a sufficient and drawable balance or who, after giving a cheque, withdraws all or part of the balance, making the balance insufficient for settlement of the cheque, or if he orders a drawee not to cash a cheque or makes or signs the cheque in a manner that prevents it from being cashed."

Also under Article (599) of the Federal Commercial Transactions Law No.(18) of 1993

"1. A cheque may not be issued unless the drawer has with the drawee, at the time of drawing the cheque, money which he can dispose of pursuant to an express or implicit agreement.

2. The drawer of a cheque or he who orders a person to draw it on his behalf shall deliver sufficient funds to pay such cheque; however, the person who draws on behalf of another shall be held personally liable towards the indorsers and the bearer and no others for providing the consideration for payment.

3. The drawer alone must prove, in case of denial, that the drawee of the cheque had at the time of its drawing sufficient consideration for payment; if he fails to do so he shall be liable to pay the cheque even when he protests for non-payment after the prescribed time limits."

In order to provide you with proper advice, we need to review the documents and information. You may contact us on our email legal@raalcuae.com.

Sincerely,

Sunil Ambalavelil