Q: Hello, My father had a criminal case for bounced cheques. He has previously paid a part of the amount but failed to pay the full amount as his company faced losses and closed. He's now facing a jail time of 2 years. Now, the same person is filing a civil case. Could you please tell me how would this end? Thank you very much. (Please do keep in my mind he signed personal cheques).

Q: What is the cost to file a civil case for a cheque bounce of AED 165,000?

Q: Hello Sir, I have a company and have outstanding loans worth AED 1.9 Million. We have been paying regularly for over 2 years now, but I have not been able to pay my last EMI. The next one is due soon but I don't have the provision to pay as the business is very dull. What are the consequences if I cannot pay?

Q: Dear Sir / Madam, Greetings from Dubai! Our commercial group has been established in Dubai since 1963. Due to the recent turbulence in the economic conditions in the region, the banks have withdrawn the support for our financial facilities provided to our company which has lead to default in honouring our commitments. While we are trying to manage the situation, the banks have filed criminal/civil cases against our companies. Let me know if your esteemed organization can help us amicably restructure the outstanding debt with the bank so that we can continue to focus on reviving our business. Thanking you!

Q: Salam Ibrahim. Hope all is well. I have an unpaid loan with one of the banks and a judgement was made with a one-year jail sentence. I no longer live in Dubai. If I settle with the bank, can the bank reverse the judgement?

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.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

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 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.

The provisions of this Federal Decree-Law No. (31) of 2021 Promulgating the Crimes and Penalties Law, known as the "New UAE Penal Code", governs criminal actions in the United Arab Emirates. The New Penal Code repeals the previous UAE Penal Code (Federal Law No. (3) of 1987 Promulgating the Penal Code).