Q: Hi. One of my customers had taken some products on credit and gave me two cheques of AED 300000 (total AED 600K). At the due date of the cheque, the customer asked not to put the cheques in the bank as he’s short of money. When I asked for money he made some excuses. I fear he may run away from the UAE. What should I do for such a case, where I had not put the cheque in the bank for a transaction as I fear if he notices the bounced cheque he escapes from the UAE?

Q: Hello Sir My query is I have a cheque of AED 154000 and the contract made between us for this cheque is also available. Now the person who gave me the cheque is not paying and asking for time. Should I get his cheque bounced? And if I file a civil case, how much % I have chances to get this money? He has 2 more companies which are doing quite well. Suppose he comes out on bail, is my cheque valid? I heard if he completes a jail term, then he is not liable to pay this cheque.

Q: What is the jail term for a criminal case of a cheque totalling amount of 1,330,000/-, 9 cheques of AED 40,000/-, 12 cheques of AED 50,000/-, 1 cheque of AED 120,000/- (all on the personal name), & 1 cheque of AED 250,000/- (on the company's name) in Sharjah? Could we file a civil suit for the same as the person doesn't get released until he pays & clears the cheque amounts? Are we also eligible to claim the damages & losses? How much could be claimed for damages? Please define with your best knowledge. Thanking you for your kind cooperation.

Q: Hi, I have a cheque bounce from a person who owes me 63,000 AED. They are two cheques; one for 43,000 and another for 20,000 have bounced. How can I recover my money? The person continues to ask for more time but it has been 4 months now and I no longer trust him. Please let me know the timelines, also whether a travel ban will be imposed on him with the recent change in the law (decriminalization of cheque bounce). Also how much court fees will need to be paid with the new law (with direct execution) and is it recovered from the other party? Looking for urgent help on this, please!

Q: Last year I had filed a civil case about a bounced cheque. The defendant was unresponsive to all notices issued via email, SMS and even newspaper. The full process was followed after which a favorable judgment was granted to the performance order and an arrest warrant issued. The defendant was finally arrested on a warrant which was related to a completely different case filed by someone else. The judge granted him 30 days to settle dues but also released him without, it seems, any guarantees for reporting back. Of course, he did not pay and is now seemingly free and can not be located. Now after 6 months the defendant has filed an appeal. My questions are: 1. Under the UAE law, isn’t the deadline for appeals supposed to be 15 days from judgment? 2. What could be the possible grounds to appeal a bounced cheque? 3. Is there any mechanism to have a warrant executed on priority - especially since the defendant did not fulfill the settlement commitments to the court?

س: السلام عليكم، ما الذي يحدث في حال تقديم شيك للبنك وارتجاعه بسبب عدم وجود الرصيد؟ هل يُفتَح بلاغ في النيابة أم أن هنالك طريقة أخرى؟ وبعد فتح البلاغ، ما الإجراءات التي تتم؟

Q: Dear sir/madam, There is a civil company with a professional license that owes me 925,000 AED as per an existing execution lawsuit. The company has not paid me in the last 5 years despite one of the partners/managers being detained for one month. I met the partner/manager of the company and he said he will start a lawsuit to declare that his civil company is a commercial LLC. Then he will only have to pay 50,000 AED (declared capital of his company as per his MOU of the civil company). He showed me a precedent lawsuit wherein the cassation court stated that they are responsible to judge if a company is civil or commercial, irrespective of the license. Question 1: Have many companies with civil licenses been deemed to be commercial companies recently? Is it easy to prove that a civil company is a commercial company? Question 2: What type of evidence has the partner/manager to produce to prove that his company was a commercial company even though it has a 25-year-old civil license?

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 article is related to the Civil procedure in the UAE. The procedure includes both payment orders on the basis of cheques and original documents as well as the normal civil procedure where the plaintiff has Invoices, agreement, and documents to prove the claim in the civil court.

يلعب الشيك دوراً مهماً في الحياة اليومية سواء في ميدان المعاملات التجارية أو في ميدان المعلامات المدنية باعتباره أداة وفاء والتزام تحل محل النقود في التعامل بين الافراد. ونظراً لهذه الأهمية فقد أصبح أكثر الأوراق التجارية انتشاراً وتداولاً بين الناس، على الرغم من حداثته نوعاً ما. فالشيك لم يبق كما كان في بداية عهده أداة لسحب الودائع المصرفية لحساب الساحب ذاته، بل أصبح أداة وفاء تحل محل النقود سواء على النطاق الداخلي بالنسبة للمعاملات التي يقوم بها الأفراد داخل الدولة فحسب وزادت أهميته.

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 law promulgates UAE Civil Procedures Code (Civil Procedure Law) which governs civil procedures in the United Arab Emirates, including the prosecution before the courts, litigation and execution.

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.