How to File an Execution Case in the UAE

As of January 2, 2022, a bounced cheque due to insufficient funds in your bank account is no longer considered a criminal offense within the UAE. Despite this change in law, however, the recipient has all rights to pursue legal action against the issuer through Cheque Execution proceedings.

The Amended Commercial Transaction Law Article 635 (Bis) states that payors, who write cheques and mark them as non-remunerated due to a lack of funds, may be subject to coercive enforcement in accordance with the Executive Regulation of Federal Law No. 11 of 1992. This gives the cheque’s payee full rights to insist on partial or complete payment from such an individual.

The fresh legislation proposed the Cheque Execution Process, assuming “Insufficient Funds” as the cause of a cheque bounce.

The revised law voids the criminal aspect associated with this return-related matter, and instead presents checks as a legal instrument or bond that accelerates both precautionary and execution proceedings without having to endure time-consuming civil processes, such as filing claims in court along with appeals and executions.

Tasheel Legal is here to provide a simple solution in order for you to reclaim the value of your check. Follow these easy steps and you’ll be done soon!

Afterward, the court notifies the defendant about their case in a span of 3-5 days. If the payee and defendant fail to resolve matters amicably within 15 days, then execution proceedings will begin.

DOCUMENTS REQUIRED

TIMELINE

The entire Cheque Execution Process takes just about 3 weeks to be completed

Filing a cheque execution case in the UAE involves several steps under Federal Decree-Law No. 14 of 2020 on the amendment of provisions concerning the UAE Commercial Transactions Law. The process has been simplified to protect the rights of cheque beneficiaries. Here’s how you can proceed:

Steps to File a Cheque Execution Case in the UAE

Verify the Cheque:
- Ensure the cheque is dishonored due to insufficient funds, a closed account, or any other reason.
- Obtain a return memo or bounce certificate from the bank stating the reason for dishonoring the cheque.
Visit the Execution Court:
- Execution courts in the UAE handle bounced cheque cases directly.
- Go to the execution department of the relevant emirate where the cheque was presented or where the bank is located.
Submit Required Documents: Prepare and submit the following:
- Original bounced cheque.
- Bank’s return memo (bounce certificate).
- A copy of your Emirates ID or passport.
- Any agreement, invoice, or proof of the transaction related to the cheque (if applicable).
- Power of Attorney (if a lawyer represents you).
Filing the Execution Case:
- File an execution order with the court. According to the new law, a bounced cheque is treated as an enforceable document (akin to a court judgment).
- You can demand immediate execution for payment from the issuer.
Court’s Actions:
- The court will notify the cheque issuer (drawer) and provide them with a limited period (often 15 days) to pay the amount.
- If the issuer fails to comply, the court can take enforcement measures such as:
  - Freezing bank accounts.
  - Seizing movable or immovable assets.
  - Issuing travel bans or arrest warrants.
Additional Criminal Complaint (if applicable):
- For cases involving intentional fraud (e.g., closed accounts), you may also file a criminal complaint with the police or Public Prosecution, although this is separate from the execution case.
Legal Representation:
- It is advisable to hire a legal expert or lawyer specializing in cheque cases to ensure compliance with legal procedures and improve your chances of recovery.

Key Features of the UAE Law on Bounced Cheques

Cheques as Enforceable Instruments

Bounced cheques are considered equivalent to court judgments, expediting enforcement.

Penalties for Issuers

In addition to legal enforcement, criminal penalties like fines or imprisonment can be imposed for fraudulent cases.

Partial Payment Provisions

Banks are obligated to honor cheques partially if the account has insufficient funds to cover the full amount.

Time Limit

Generally, a cheque must be presented within 6 months of its issuance date. Ensure you act promptly to preserve your rights.

By following these steps and understanding the applicable laws, you can effectively file and pursue a cheque execution case in the UAE.

For further information or assistance in defending yourself against such a case, don’t hesitate to contact our experienced legal team at Tasheel Legal.

Please call/whats app Adv Harish Pavithran for any kinds of queries on 0501750107. He will be happy to assist you….

REACH US TO RESOLVE YOUR ISSUE

Our expert team is equipped to guide and assist beneficiaries of unpaid cheques in exploring all available options. We provide advice on the best course of action to expedite recovery, minimize costs, and facilitate out-of-court settlement discussions with the obligors.