What to expect in a police case due to loan default

Question

Q: I missed 3 instalments and the bank deposited my security cheque. My bank filed a case with the police. Will a fine be imposed? If this goes to court, what is the likely sentence? A: Considering that the cheque amount is higher than AED 200,000/-, The chances of a fine are very low but possible…

Hari Wadhwana · Accepted Answer

Dear Sir/ Madam,

Thank you for getting in touch with me.

I shall deal with your queries as per the pointers submitted by you:

1- Typically within a week or two, the defaulter is called by the police. However, it depends on the case and the police station where the case is filed.

I would always suggest my clients be prepared with their legal defence and not wait till the time police call as you will not be better prepared for the questioning.

2- You will have to make a bail application and deposit the passport in order to get released. If bail is rejected then you will have to spend time in jail.

One has to be very careful while drafting a bail application and an expert review is very important.

3- Considering that the cheque amount is higher than AED 200,000/-, The chances of a fine are very low but possible. Again it has to be litigated well.

4- The likely sentence is at the discretion of the judge but should not be more than a year.

5- Since this is a criminal case, your liability to the bank does not arise. You will only have to pay a fine or spend jail time.

Your liability towards outstanding amount will arise in a civil case as and when filed by the bank. And you will be liable to the extent of unpaid amount i.e. AED 230,000/-

As I stated before, this case has to be carefully litigated and dealt with to ensure you are not jailed or no hardship is caused to you.

You can get in touch with me on hari@alnassaradvocates.com or 052-9495731 for further discussion or query.

Regards,

Hari Wadhwana

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