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.
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
