Q: Greetings!! We have a cheque execution case. The bank applied for execution to block the company account and the vehicles claiming the wrong amount. The court also approved this request and sent it to the central bank to impound the vehicle. We had already paid over 50% of the claimed amount and also requested the balance payment in installments a couple of weeks ago once the claimed amount was amended in the court system. The installment request is yet to be approved, however, they have proceeded with the execution. This is very concerning. How long does it take to block the accounts? What are the repercussions of the block? Kindly please advise if there are any other options available to avoid blocking the accounts and impounding the vehicle. Thank you

Q: Good afternoon, Respected Lawyers! I live in Ajman. I am facing a situation where I suddenly received a message in my LLC company account SMS stating that a certain amount has been debited and seized by court. The debited amount is too high and the company account had very little cash so it's showing in minus. Without any calls from the court for a case hearing or judgment, I found this execution message straight away in my bank account SMS. Today, I found the very same message & same amount debited from my personal account too. How is it that the same amount will be taken twice, I have an LLC company and I even own property that is under mortgage. Still trying to get all the details from the court regarding the case that led to this execution. Can this be appealed and come to a better conclusion? Can they seize my personal property, since they have taken over my personal bank account? Kindly guide me in this matter!

Q: Dear Respected, I have a travel ban on me and a case raised in Dubai Courts against the company. The reason is the company owner asked me to sign a cheque to a service provider and the cheque bounced. I'm not a shareholder in the license. I'm not a partner in the license or elsewhere. I'm not a manager in the license or elsewhere. I only hold a POA from the owner to assist him in opening a bank account while he was abroad and be the authorized signatory in the bank. What should I do in this case? Thank you respected.

Q: Hello, I have multiple cheque execution cases filed against me due to financial strains last year. My trade license and visa will expire next month, along with my Emirates ID. Is it possible for me to renew my license and visa along with EID prior to settling the execution cases? The trade license and visa were issued by the free zone authority. I look forward to your response. Thanks.

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.

An interview-format article covering the topic of loans and bounced cheques in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

As the civil and commercial transactions in the UAE have been growing rapidly, and due to replacing cash with other financial instruments such as cheques for big amounts of money, this had caused some hiccups at times leading to criminal and civil consequences on the person who defaults on fulfilling obligations.

The provisions of this Federal Decree-Law No. (32) of 2021 on Commercial Companies governs commercial companies in the United Arab Emirates. The New Commercial Companies Code repeals the previous UAE Commercial Companies Code (Federal Law No. (2) of 2015 on Commercial Companies).

The provisions of this Federal Decree-Law No. (42) of 2022 Promulgating the Civil Procedures Code, known as the "New Civil Procedures Code", governs civil procedures in the United Arab Emirates. The New Civil Procedures Code repeals the previous UAE Civil Procedures Code (Federal Law No. (11) of 1992 Concerning Issuance of the Civil Procedures Code).

The provisions of this Federal Decree-Law No. 50/2022 Issuing the Commercial Transactions Law, known as the "New Commercial Code" governs commercial transactions in the United Arab Emirates. The New Commercial Code repeals the previous UAE Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law.