Definition: Cheque refers to a negotiable instrument that contains an unconditional order to the bank to pay a certain sum mentioned in the instrument, from the drawer’s account, to the person to whom it is issued, or to the order of the specified person or the bearer.
FREQUENTLY ASKED QUESTIONS:
| Who is eligible for cheque book from Dubai Banks? | Any individual who holds a residency visa, any company holding a valid commercial license/trade license can hold a bank account and cheque book with banks. |
| When can we do Cheque deposit? | Cheque deposit can be held on the Cheque (due) date or within 6 months of the expiry of such cheque (due) date. |
| Validity of cheque | 6 months from the cheque date |
| Time Limit For Filing Case | Anytime within 2 years from the expiry date of presenting cheque. |
| Cheque Bounce criminal case or civil case | Cheque bounce in general is criminal case.But for cheque amount below AED 200,000 is consider simple criminal offense which can we controlled with fines.While for cheque amount above AED 200,000 it is a criminal offence and subject to both fine and imprisonment. |
| Cheque bounce case effects | Arrest warrantTravel banSeizing of Assets, seize the property and assets, freeze bank accountsFine or imprisonmentFine & imprisonment |
| Cheque below AED 200,000 | Usually Fines as below:Cheque amount below AED 50,000- Fine AED 2,000.Cheque amount between AED 50,000 to 100,000- Fine AED 5,000.Cheque amount above AED 100,000 to 200,000- Fine AED 10,000. |
| Cheque above AED 200,000 | Usually fine upto AED 30,000 & imprisonment of 2/3 years. |
| DETAILED PROCEDURES: CHEQUE BOUNCES, CHEQUE RETURN, CHEQUE DISHONOR LEGAL PROCEDURES, LEGAL RECOURSE, CONSEQUENCE AND PENALTIES? | |
| CHEQUE AMOUNT BELOW AED 200,000 | |
| EXACT CHEQUE BOUNCE CASE FILING PROCEDURE: | |
| Procedure 1:With Dubai Police (Criminal Case) | The Cheque payee to file a cheque bounces case against the cheque drawer (cheque owner) before Dubai Police.Dubai Police will issue a letter to cheque drawer/ cheque owner bank enquiring the status of the cheque drawer / cheque owner bank account status.Bank submits a cheque drawers/ cheque owner bank account detail along with the reason for cheque bounce ‘account closed’, ‘insufficient funds’, signature mismatch etc.Dubai police can issues travel ban and arrest warrant against cheque owner.Cheque drawer can apply arrest warrant bail and further time for payment on depositing passport for amount below 1 Million.Dubai police invites the Parties for settlement, further time for making payment and if settled matter closed or else procedure 2. |
| Procedure 2:Public prosecution(Criminal Case) | Matter transferred from Dubai Police to Public prosecution or cheque bounce committee within 24 hours of filing the case in police records.Public prosecution invites the parties for settlement and judgment passed accordingly.In case of no settlement, Cheque drawer to pay below fines :Cheque amount below AED 50,000- Fine AED 2,000.Cheque amount between AED 50,000 to 100,000- Fine AED 5,000.Cheque amount above AED 100,000 to 200,000- Fine AED 10,000.Cheque drawer can pay the fine or undergo jail, thus conclude the matter before Dubai police and public prosecution. |
| Procedure 3:Civil Court(further rights of cheque payee) | Even if cheque drawer paid fine cheque payee can file a civil case within 3 years of Cheque drawer convicted and paid fine, for recovering entire cheque amount.The Civil court may pass a judgment to make full cheque mount payment or undergo further imprisonment of 2/ 3 years; seize the property and assets, freeze bank accounts for non-payment of cheque amount for non-payment of cheque amount.Once the Cheque drawer is back from imprisonment the Cheque payee can file a second time claim for recovering such cheque amount and the civil court can once again accept such trial and pass a judgment. In case of no second time claim the Cheque Drawer is free from the same. |
| CHEQUE AMOUNT ABOVE AED 200,000 | |
| EXACT CHEQUE BOUNCE CASE FILING PROCEDURE: | |
| Procedure 1:With Dubai Police (Criminal Case) | The Cheque payee to file a cheque bounces case against the cheque drawer (cheque owner) before Dubai Police.Dubai Police will issue a letter to cheque drawer/ cheque owner bank enquiring the status of the cheque drawer / cheque owner bank account status.Bank submits a cheque drawers/ cheque owner bank account detail along with the reason for cheque bounce ‘account closed’, ‘insufficient funds’, signature mismatch etc.Dubai police can issues travel ban and arrest warrant against cheque owner.Cheque drawer can apply arrest warrant bail, further time for making payment on depositing passport for amount below 1 Million.Dubai police invites the Parties for settlement and if settled matter closed or else procedure 2. |
| Procedure 2:Public prosecution(Criminal Case) | Matter transferred from Dubai Police to Public prosecution within 24 hours of filing the case on police records.Public prosecution invites the parties for settlement and judgment passed accordingly in case of simple cases.While in case of major cases and investigation required the matter will be forwarded to criminal court. |
| Procedure 3:Criminal Court(further rights of cheque payee) | Criminal court, accept the case in file, hold hearings, investigation and finally pass a judgment in case of proven, finding the cheque drawers fraudulent motive behind issuance of such cheque.Such judgment many include payment of cheque amount, fine and imprisonment fixed at the discretion of the Court.Cheque payee to file an execution petition for implementing such judgments, including seize the property and assets, freeze bank accounts for non-payment of cheque amount. |
| Procedure 4:Civil Court(further rights of cheque payee) | Cheque payee can still file a civil case within 3 years of Cheque drawer convicted and paid fine, for recovering entire cheque amount.The Civil court may pass a judgment to make full cheque mount payment or undergo further imprisonment; seize the property and assets, freeze bank accounts for non-payment of cheque amount.Once the Cheque drawer is back from imprisonment the Cheque payee can file a second time claim for recovering such cheque amount and the civil court can once again accept such trial and pass a judgment. In case of no second time claim the Cheque Drawer is free from the same. |
Disclaimer: The information’s provided above are only for guidance and reference purpose and is subject to changes as per the revised market practice and revisions and practical implementation of applicable laws and procedures. Hence we shall not be held responsible for (1) any act or action solely held by you, (2)any losses, damages or injury caused to and by you on relying and referring to our above information’s.