Q: I am a trader, my clients provide me PDC cheques (post dated). As per new law if my clients bounce the cheque & I make a case against them, they won't be imprisoned, they would have to pay fine.  What about my payment, how would I recover my bill payments? Will they still be liable to pay my dues? Also, will they be under a travel ban?

Q: Hello! I lent money to my office colleague. As a guarantee, he gave me three blank cheques. He is no longer working for the same company. He, in fact, is looking for a new job. It's been two years and he hasn't paid anything. Not sure if I'll deposit the cheque mentioning the amount he borrowed, definitely the cheque will bounce back. I came to know from my other colleagues that if the cheque gets bounced back, the case will go to the court. If the court sees that he is unable to pay, they'll write off this amount and he might be sent to prison for few weeks and I'll no longer be eligible to ask him for the money. Can you please assist on what I should get legally to get my money back? Thanks!

Q: Dear Mrs Khan, I have recently received a Post Dated Bank Cheque from one of my new clients, the cheque date is Thursday 19th Apr 2018. Today, I called this client to find out that they are not answering calls, and when I went to their office I found it closed and many of their suppliers in the corridors complaining about their Bank Cheques that were bounced back (rejected). The owner of this company seems to have already left the UAE and none of his employees is answering the phone. So most probably the bank cheque that they gave me (AED 57250) will bounce back Thursday. So I want to start taking action now. I sold them 10000 boxes of 15 Kg lemon, which they stored in a third-party cold storeroom in Dubai. I went and found that the lemon is still there. Please, could you tell me how can I legally get back my lemon as I'm 100% sure I will not be paid? Thanks in advance and please feel to ask should you need more details.

Q: Hello Sir My query is I have a cheque of AED 154000 and the contract made between us for this cheque is also available. Now the person who gave me the cheque is not paying and asking for time. Should I get his cheque bounced? And if I file a civil case, how much % I have chances to get this money? He has 2 more companies which are doing quite well. Suppose he comes out on bail, is my cheque valid? I heard if he completes a jail term, then he is not liable to pay this cheque.

Q: Hi, I have filed a case against my client for the returned cheque of 45k. He got released after paying a fine. How can I file a civil case and which department should I approach?

Q: What action should I take against an individual who owes me over AED 300k and his cheque has bounced?

Q: Hi! I have a customer and his cheque was recently bounced. He intentionally issued a closed account cheque and we realised when the bank letter informed us. It's now 5 months and he is neither paying nor answering the calls, and I cannot travel every day to Abu Dhabi to chase him. Can you guide me? What is the best way to get the payment back? Thanks

Q: I am into diesel trading business. One of my customers owes me AED 144,500. He issued me two cheques of 100,000 of each. He told us he had 10 heavy vehicles. We supplied diesel to him for two months. He defaulted on payments and stopped answering calls. After this default, I inquired with one of his drivers and he told me none of the 10 vehicles is owned by him. He along with his colleagues, present themselves as a transport company and defraud the diesel supplier by issuing post-dated cheques to them and selling the diesel purchased in the open market at half the price. I have already filed a cheque bounce case against him. Apart from the cheque case, can I file a cheating case against him? If possible, what are the documents required to file such a cheating case?

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.

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.

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 law promulgates UAE Civil Procedures Code (Civil Procedure Law) which governs civil procedures in the United Arab Emirates, including the prosecution before the courts, litigation and execution.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

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.