Questions & Answers
Questions & Answers
3 available 3 • View allFiling criminal and civil cases against a company for cheque bounce



2
Q: Hello,
I hope you're all doing well during this tough time.
I have a question in regards to bounced cheques, specifically corporate cheques.
I have a cheque for AED 800,000, and it has bounced. The owner of the corporate has asked for a month to pay back. However, I am worried he will leave the country and not honour his obligation.
My questions are fairly simple:
1) Am I to put a case on the individual who signed it or the corporate?
1) If I put a criminal and civil case on the corporate right now and he's unable to settle amicably, can I put a travel ban on the owner (who signed) as it is a corporate case?
2) Does the new insolvency law as of late 2019 also apply to corporates?
3) Is the owner personally liable if the company doesn't have assets or cash?
May 14, 2020
1727
The new insolvency law regarding loans of natural persons

1
Q: Hello,
About the new insolvency law for a natural person, does this also include Small & Medium Enterprise (SME) owners?
I am specifically asking about those businessmen who have business loans from banks and unable to service the loan, where the banks file a criminal case against the owner known as bounced cheque case.
Are these businessmen also covered under the insolvency law, so that they get a chance to sort out their debts?
Jan 2, 2020
1611
Filing for insolvency of a company during COVID-19 situation
1
Q: My friend's firm is in a Free Zone since years.
It was fine before, but in the past 15 months, due to Covid19, sales slowed down, many retail clients shut down or are not paying.
They are unable able to pay 2 business loans for two months; few creditors, work credit cards - all the total over 600k AED. The loans mature in 2023.
Can you/your firm please help them to file for insolvency or bankruptcy or a combination and close their company?
We read that a lot of Federal bankruptcy and insolvency laws with provisions for Covid19 were passed to help SMBs last year.
May 26, 2021
323
Legal blog
3 available 3 • View allLaws and Procedures Related to the Dishonoring of Cheques 7
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.
Feb 24, 2020
3091
Bankruptcy Law and Personal Insolvency Law 10
This article will briefly explain about the Personal Insolvency Law of 2019 and Bankruptcy Law of 2016 in the UAE. Previously, there was only the Bankruptcy Law that was available for the commercial companies, merchants, traders, and similar persons who were suffering from the financial crisis but now individuals have such options available as well especially considering the effects of COVID-19. Both laws were issued to assist distressed persons and entities by offering them settlement options.
Oct 1, 2020
4979
Bounced Cheques in the UAE: What You Need to Know in 2024 292
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.
Oct 15, 2024
222818
Laws & Regulations
2 available 2 • View allFederal 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
33071
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
3563

Other answers by
Is it mandatory to visit the CID in person to update my records? 2
Respected Advisors,
I have been involved in a few criminal cases since 2017, but all of them were cleared by this year. I have obtained release letters for all the cases from the public prosecution office through an online portal.
Recently, I also received my residence visa. After the visa process was completed, I applied for a PCC online. However, the request was rejected.
I contacted the 901 office, and they advised me to visit the CID. I arranged for a power of attorney to be granted along with all the necessary documents to update the system.
Twice I was told to come in person, but I am hesitant to do so because of my previous negative experience.
Could someone please advise me whether I must go in person or if the person holding the power of attorney can handle the process?
Thank you!
Nov 15, 2023
712
How can the heirs of a deceased person distribute his shares if there is a minor? 1
My father died recently. We are Muslim residents in Dubai. I have siblings including a minor who is 16 years old. My father has land and vehicles under his name.
If I am applying for inheritance, does the minor need to have a share in ALL the properties and vehicles or can she be given a particular property/vehicle?
Secondly, if we want the land to be in her name, and she manages it (like renting and bank), does it require an adult?
Can the vehicles be transferred to someone else’s name without including her?
Your guidance will be very much appreciated.
Oct 26, 2023
139
Senior executive unfairly dismissed: How much compensation to claim? 2
Dear Sir/Madam,
I have been unfairly dismissed (it's personal on their end) and have been given only two months' salary apart from the compulsory gratuity and notice pay.
I would like to claim more than two months as I am a senior executive (Director).
Up to how much should I claim, and would this be a realistic amount for me to "win"?
Oct 16, 2023
151
Can we file a claim against an employee if he caused a financial loss to the company? 2
There was a legal action against an employee who failed to participate in an international event in Saudi Arabia due to a family issue that resulted in a travel ban, which in turn led to the non-signing of an AED 100,000 deal resulting in a loss to the company.
- What legal grounds exist for the employer to pursue legal action against the employee in this scenario?
- Does UAE labor law provide any specific guidance or remedies for such situations?
- What are the desired outcomes or remedies the employer can seek through legal action?
- Are there any potential legal consequences or liabilities for the employer in pursuing this case?
- What documentation and evidence are needed to support the employer's case?
Sep 14, 2023
967
What are my options if my husband is refusing to pay child support? 1
Dear Sir/Madam,
What are the charges to open an execution file in Sharjah for a divorce case and how much time will it take to execute the court order?
My husband told the court that he does not have money to pay for me and my daughter's expenses because he is earning a minimum amount in which he can only survive.
In that case, what can I do?
He closed all his bank accounts and sent money to his parents in India. He also told me that he will show in court that he does not have a job or money, so the court or police cannot do anything to him.
Can you please guide me on what I can do in this case? I do not have any proof of his salary or bank account because he was not informing me about anything related to his financial matters.
In fact, he was forcing me to ask my parents to send money to us. Because of no proof, the court agreed with him and rejected my appeal. I do not have a job and I am struggling for basic expenses.
Can I request the court to inquire about his gratuity and end of service?
Or can the court ask him to submit proof of the money that he received from his company, as he was working for 30 years in the same company?
Sep 13, 2023
350
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