Q: The bank bounced a cheque of AED 103,000 for my business partner and filed a criminal case. The bank told him they will file a civil case. What happens now? A: Criminal wise, the cheque's issuer is 100% liable. Whilst civil wise, the cheque's issuer can prove the reason for issuing the cheque…

Dubai, UAE

2600

Acting against a civil case for a bounced cheque

Salaam Alaikum

The bank bounced a cheque of AED 103,000 for my business partner and filed a criminal case. My partner has already paid "more" than the cheque amount of AED 106,585. We have full proof.

Only AED 53,000 was outstanding - this is mostly interest, legal charges, late charges and fines. The rest is all paid properly.

Unfortunately, this year his business had a lot of losses. As he was unable to pay the full amount, as per new Dubai laws and Police, he paid 10,000 AED fine and got the criminal case removed by the public prosecutor a few days ago.

Now, the bank told him they will file a civil case. What happens now? How many weeks will it take to get a court hearing and what's his recourse?

Sherif M. ElKhatib

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16 Oct 2018, 10:46

Dear Questioner,

With reference to your inquiry, kindly be informed that the criminal case is utterly different than the civil One.

Criminal wise, the cheque's issuer is 100% liable since he has issued a cheque at a time of having insufficient funds in his bank account.

Whilst civil wise, the cheque's issuer can prove the reason for issuing the cheque in the first place, along with proving that he has already paid the cheque's value prior to it being bounced.

In such a case, the court shall not order the issuer to pay anything to the plaintiff (the beneficiary).

The above reply is based only on the given info.

Kind regards,

Sherif M. ElKhatib

+971 505050 835

16 Oct 2018, 12:15

Shukran Sherif for clarifying.

Today my partner got a threat call from a bank person saying 'WE WILL SEND LEGAL CIVIL NOTICE IN 15 WORKING days. BE PREPARED'.

What do we do? How many weeks or months does he have before a civil court hearing comes?

He's worried they may put a travel ban and he won't be able to visit his customers or family if required.

16 Oct 2018, 12:39

1. What to do?

Settle the matter amicably with them after discussing the fact of paying the entire amount already (with the supporting documents).

2. Time-frame?

There are no specific criteria. It might take a couple of weeks, a month...etc.

3. Travel Ban?

Yes, they can ban him within 2 days max if they want to. Unfortunately, you have nothing to do in that regard.

The whole matter should first be referred to the court in order to get it discussed and cleared there for good.

FOR ANY FURTHER ASSISTANCE, PLEASE CONTACT ME ON MY EMAIL ADDRESS PROVIDED TO YOU EARLIER.

I AM NOT ALWAYS AVAILABLE HERE.

16 Oct 2018, 13:01

Shukran.

We already tried to resolve but the bank is greedy despite paying more than the cheque amount.

They said they won't remove the criminal case and want extra interest, which is haram (prohibited) and put additional fines, legal fees to be paid.

That's when my partner decided to pay the fine to Dubai police as he would be stuck in jail (he was inside for 1 day) and it was affecting his business, family and health.

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