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.
Defending a cheque execution case in the UAE involves presenting a valid legal defense to counter the enforcement of the bounced cheque. The legal process for cheque execution in the UAE is governed by both commercial and criminal laws, including Federal Decree-Law No. 14 of 2020 (amendments to the UAE Commercial Transactions Law) and the UAE Penal Code. Below are the key defenses you can consider when defending a cheque execution case:
If you’re seeking to contest the newly implemented ordinance on cheque execution cases, there are a few straightforward methods to do so without any payment. The three essential criteria for this are:
1.Security cheques are not intended to be used for filing execution cases.
In cases filed by banks, security cheques are often used to initiate claims against individuals or companies. As a result, these execution cases can be challenged in court and potentially dismissed without requiring any payment.
2. Discrepancies in Claim amount V/S Actual amount
In many cases, the bank does not file for the exact amount owed, allowing such cases to be challenged and potentially dismissed without requiring any payment.
3, The timeframe in which the cheque became invalid
There is a specific timeframe within which an execution case must be filed. If this period is exceeded, the case can be contested and potentially dismissed without any payment.
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….
Many people are unable to repay their liabilities to the bank due to job or business losses. Although the newly introduced “Cheque Execution Case” is essentially similar to a civil case, there are several clauses that can be used to defend against it and help avoid payments. Execution cases can be contested or appealed in court, potentially resulting in a verdict in our favor. Tasheel Lawyers can assist you in getting relief from both the liabilities and the case.
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