Questions & Answers
Time limit to present a bounced cheque for execution according to the new law
Regarding the new cheque bounce execution, is there a time period to file this execution after the cheque has been bounced?
Let me explain further. If a cheque was bounced in January 2019, can the party who has this cheque file for a cheque bounce execution under the new law that came into effect year?
Yes, you can.
Yes, you have to file the case after the cheque has been bounced, one year is ok and still valid.
Dear Questionnaire,
Please note that as per Federal Decree-Law No. 14 of 2020 amending Certain Provisions of the Federal Law No. 18 of 1993 Concerning the Commercial Transaction Law and the provisions of Circular No. 9 of 2021 Concerning the Disposal of Decriminalized Cases of Cheques Issued in Bad Faith with Insufficient Balance, you as a cheque holder have the right to file a cheque execution case under Article 635.
Also note that since the cheque is from 2019, you have the right to file a civil case and the court fee for such a case shall be 2% of the value of the cheque. I hope my answer is satisfactory.
Best Regards
Khubaib Bin Naeem
