Since cheque bounce inward UAE is a criminal offence together with registering a electrical load against the cheque author allow a go ban alongside arrest warrant, drawer of bounced check cannot exit UAE nor tin give the sack go into if already left until settlements.
To know to a greater extent than nigh the short town of Cheque bounce case together with removal of go ban, read out below guide.
New Law Cheque Bounce:
As per UAE Federal Law No three of 1987 promulgating the Penal Code, both criminal, every bit good every bit civil proceedings, tin give the sack last initiated against the perpetrator of bounced cheque writer.
What is Cheque Bounce?
A cheque bounce or bounced check is a cheque presented yesteryear the payee together with rejected yesteryear the drawer banking company nether below circumstances:
A: Insufficient funds inward drawer account.
B: Changing signature on cheque or omitting it from beingness paid.
C: The drawer's banking company problem organisation human relationship was unopen earlier cheque is presented for payment.
Click here to take away absconding/Travel Ban out of UAE.
1: The Police Complaint:
In lodge to file a electrical load for a bounced cheque, the bearer of the cheque must formally opened upwards a example alongside the police clit of the respective emirate against the drawer. For registering electrical load on bounced cheque dubai, you lot tin give the sack utilization Dubai Police app.
After receiving complaint, the police clit volition contact the issuer of the cheque to notify him/her of the same together with asking his urgent presence. At the police clit station, the drawer is allowed to settle the effect through paying the total amount of the bounced cheque. If he/she paid, no farther legal proceedings volition last taken.
If the issuer of bad chuque does non stimulate got coin to pay, he/she stimulate got the correct to asking about fourth dimension to settle the issue. Upon such request, the issuer may last granted a reasonable menstruation secured yesteryear the deposit of his passport at the police clit station. However, it highly depends on the cheque amount every bit inward many cases such guarantee of depositing the passport is rejected yesteryear police clit officers if the amount drawn on the cheque is to a greater extent than than 1 ane thou one thousand dirhams or higher.
Point to last noted that cheque bounced is a criminal offence inward the UAE, upon filing the electrical load at the police clit station, a travel ban and arrest warrant on the drawer volition last issued automatically. Hence, the issuer of the cheque volition last banned from leaving the terra firma together with arrested if he/she tries to escape, or volition last detained on arrival if he enters the UAE from outside.
Such travel ban inward UAE tin give the sack last removed exactly upon short town of the cheque bounced case, or later serving a sentence.
2: The Public Prosecution:
In example the opponents failed to resolve the cheque bounce case at the police clit station, the police clit together with then transfer the electrical load to the public prosecutor inward the court.
Based on the show presented inward the court, the conclusion could last a bail either yesteryear paying the value of the bounced cheque or yesteryear depositing the passport of the defaulter or about other guarantor. In example bail was denied, Blue Planet prosecutor may lodge the detention of the drawer until the courtroom hears together with decides on the case.
3: The Criminal Court:
The piece of work of the criminal courtroom inward UAE is to dive deeper into that bounce banking company represent case, opponents’ arguments, together with available evidence. The courtroom together with then proceeds to examine whether the law-breaking elements are satisfied or not. The law-breaking elements are the cloth chemical constituent together with the mental element.
Once both of the law-breaking elements are satisfied, together with yesteryear the authorisation vested inward it inward the Article 401 of the UAE Penal Code, the courtroom may determine the sanction of the perpetrator.
This tin give the sack last confined to a fine assessed alone yesteryear the court, based on the conclusion reached together with the amount claimed together with unremarkably ranging betwixt AED 1,000 together with AED 30,000+. The courtroom may too determine the sanction of the perpetrator to last serving jail term of betwixt 1 twelvemonth together with three years.
4: Civil Court Proceedings:
The criminal courtroom together with the civil courtroom component subdivision separately but may solve both civil example together with criminal case. Hence, the judgement issued yesteryear the criminal courtroom comes exactly every bit a sanction for the human activity of issuing a bounced chque alongside insufficient funds inward problem organisation human relationship or withdrawal all or component subdivision of the funds later giving the cheque.
The claimant may nowadays his example to the civil courtroom every bit good to claim his correct to the disputed amount.
After reaching a conclusion based on the show together with facts presented yesteryear the opponents, the civil court tin give the sack together with then need the issuer of the bounced cheque to pay a amount equal either to the value of the cheque or its outstanding balance. In example the perpetrator fails over again to pay the said amount, his assets may last attached, together with he may last subjected to about other jail term for failing to comply alongside the civil courtroom orders.
If in that place are no pending cases against the bounced cheque writer, in ane trial the jail term is completed, he is allowed to collect his impounded passport together with tin give the sack too exit the country.
Writing a Cheque:
If the issuer of a cheque realized that he did error yesteryear writing a cheque together with in that place were sufficient funds, it tin give the sack last remedied at whatsoever phase of the legal proceedings yesteryear providing problem organisation human relationship declaration of cheque submission date.
How to Remove Travel Ban:
Bounce cheque go ban tin give the sack exactly last removed yesteryear short town or completing the jail term, the of import betoken for the drawer is that he/she shall brand certain to call back the bad cheque together with instruct a clearance newspaper from his debtor or courtroom upon payment of the disputed amount or completing the jail term.
Henceforth, no farther legal proceedings volition last initiated, together with the UAE go ban together with arrest warrant volition last removed automatically.
Recent Developments inward cheque bounce case:
To mitigate the non-payment of bounced cheques, the UAE authorities has lately introduced novel regulations to punish such crimes alongside fines instead of jail term. This initiatory allows the issuer of the bounced cheque to instruct job opportunities or other such alternatives to last able to repay his debt instead of going to jail, acre of report to the orders of Blue Planet prosecutor.
Cheque Bounce Penalty:
According to the order, cheque bounce example of the amount non exceeding AED 200,000 shall last punished alongside the next fines:
If the amount is less than AED 50,000 the cheque bounce penalisation volition last AED 2,000.
If the amount is betwixt AED 50,000 to 100,000 the fine volition last AED 5,000.
If the amount written inward bounced chuque is from AED 100,000 to 200,000+, the cheque bounce penalty volition last AED 10,000+.
Conclusion together with extra care:
Cheque bounce inward UAE tin give the sack last associated alongside numerous reasons including illegal resultant yesteryear company, bankruptcy, absconding of the cheque writer, etc. In practice, when the bearer of the bounced cheque filed electrical load alongside the police, the most feasible means to resolve the effect for both parties is to settle it at the police clit station amicably.
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It is advisable that produce non allow anyone to utilization your chequebook, every bit holders of chequebooks tin give the sack arrive problem for a cheque bounce inward uae fifty-fifty without signing it. The practical sense shows that in that place are cases where a mortal tin give the sack last acre of report to legal liability towards a cheque bounce or bounced check case fifty-fifty it is non signed yesteryear him.