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What is the punishment for bounced cheque in UAE?

Posted on August 16, 2022 by Author

What is the punishment for bounced cheque in UAE?

The 2017 ruling means that those responsible for cheques bounced in the emirate of up to Dh50,000 are now fined Dh2,000 while those who bounce cheques whose value is between Dh50,000 and Dh100,000 pay a Dh5,000 fine. The fine for bounced cheques with a value between Dh100,000 and Dh200,000 is Dh10,000.

How long does a bounced check stay on your record in UAE?

The value of a bounced cheque in the UAE is two years from the presentment date expiry, according to Article (638/1) of the UAE Commercial Transactions Law Federal Law No.

Is check bounce a crime in Dubai?

On September 27 2020, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of UAE, issued a new Federal Decree No. All the new amendments of the decree will come into force only by January 2022. …

What is punishment for cheque bounce?

The punishment for cheque bounce is imprisonment for a term not more than two years or a fine that can extend to twice the amount of the cheque or both. A civil suit can also be instituted against the drawer for payment of the cheque amount.

How do you escape a cheque bounce case?

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File a counter case: If the person files a false cheque bounce case against you in the court, you can file a reply to the case through a lawyer for cheque bounce case near you. You can also file a counter file of cheque against the person for filing a false cheque bounce case against you.

How do I clear a bounced cheque?

The first step is to send a legal notice to the defaulter within 30 days of receiving the cheque return memo. All the relevant facts of the case, including the nature of transaction, amount, date of depositing the instrument in the bank, and subsequent date of dishonouring, should be clearly mentioned in the notice.

Is cheque bounce a criminal Offence in UAE?

The present law states that bouncing cheques is a criminal offence. “In future, it will be a civil offence where people can discuss and settle the case amicably,” Indian expatriate, K.V. Shamsudheen, who is also the chairman of UAE-based Pravasi Bandhu Welfare Trust, said.

Can I file a case against cheque bounce?

a cheque bounce is a criminal offence stipulated under Section- 138 of the Negotiable Instruments Act, 1881. However, in case of a cheque bounce, the aggrieved party can file a criminal as well as a civil suit against the accused.

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Is cheque bounce a bailable offence?

No. A Magistrate can take cognizance of an offence of dishounour of Cheques under Section 138 of the NI Act only on a Complaint from the holder in due course (in this case the person in whose favour the cheque was drawn). Further, the offence is non-cognizable so the police cannot arrest without a warrant.

Can a bounced cheque be presented again in UAE?

The latest amendment now states that any person who endorses or issues a cheque in favor of another, knowing that there is an insufficient balance or is not withdrawable, will be fined a minimum of 10 percent of the cheque amount and not less than AED 1k. The penalty is doubled if this offense is repeated.

What is the penalty for bouncing cheque in UAE?

According to the Legal Order Law no. 1 of 2017, the bounced cheque cases less than Dh 200,000 does not require to be referred to judges. The accused party is required to pay the fine of maximum Dh 10,000 depending on the cheque value. However, paying the penalty does not guarantee relief to the accused.

Can a person go to jail for a bounced cheque?

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If a certain person was convicted for a bounced cheque case and has served jail term, he or she stands released after the period. However, if the original complainant files the case again in the civil court for the second time, he or she will have to pay the unpaid amount then or go back to jail on conviction from said civil court.

What happens if you pay a fine for a bad cheque?

However, paying the fine alone does not completely absolve the issuer of a bad cheque. The complainant, in this case the person who received the cheque, can still file a case with the court. If that does happen, you need to know the following. We had earlier reported, when the law came into effect, that the fines would be:

How long do you have to file a cheque bounce case?

A top judge told Gulf News when the new law came into effect that the victim has three years to file the civil case from the time the issuer was convicted and paid the fine. If a certain person was convicted for a bounced cheque case and has served jail term, he or she stands released after the period.

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