All You Need to Know About Bounced Cheques in UAE

bounced cheques in UAE
Image Source: www.pixahive.com

The constant problem that the residents of Dubai face are cheque bounce. According to Lawyers of Dubai, police misconduct is specified by the rules of criminal procedure, and it could result in consequences and sanctions that are extremely harsh and threatening. Companies and international currencies, bank loans, lease agreements, purchases and acquisitions, and personal trades aren’t the first places in which such issues might arise.

The most common cause for Cheques to bounce is the claimant’s failure to return the money given to him by the lender just on deadline. It is governed by UAE government laws, which were enacted in 1987. As a consequence, it’s indeed critical not just for the Dubai nationals to implement appropriate measures, but also for anybody conducting business in UAE to ensure that each of the requirements for coping with verification is strictly observed. As a result, the essay discusses the consequences of a check bounce in UAE.

Financial Sufficiency

One of several characteristics that the judiciary considers while considering a lawsuit is legitimate intentions or you can say the bona fide in the legal language. As a result, the bearer of the cheque must keep a sufficient quantity of money on hand to prevent the scenario. According to Article 599 of the legislation, the drawer must deposit sufficient cash in his account to ensure that the whole value stated on the check is cleared. If indeed the drawer refuses to make a payment owed to him and then the payee has the option to demand that the drawee, provides him the drawer’s financial statements, on where he or she might pursue action.

READ ALSO:  Fabulous home technology hacks you should try

Consequences for cheques have been changed

Numerous penalties have already been added to the legislation as a result of the revisions, limiting the extent of signing invalid cheques. ‘Any individual who approves or releases a cheque on behalf of someone else, realizing that there has been insufficient credit and therefore the amount wouldn’t be withdrawn, will be punished a threshold of 10percentage of the amount on the cheque and not less than a thousand Dirhams,’ according to a few provisions. If the individual continues the offense, the penalty must be increased.’

If you or the other person disagrees with the punishment, you always have the opportunity to challenge. However, bear in mind that the appeal would be filed in such a criminal judiciary and therefore will follow the basic procedure. One should be conscious that settling the punishment would not relieve anyone of their rental payment obligations. Finally, keep in mind that the owner of your property might initiate an evictions action with the Rental Conflicts Bureau.

UAE’s Supreme Legislative Committee

To enhance the legislative society and boost the understanding of relevant experts in the Dubai government, the Secretary-general of the Supreme Legislative action Review panel in Dubai helped organize a consciousness training course labeled “Update on cheque bounce in UAE related regulations in light of the newest legislative changes to the Governmental Transactions Legislation.”

You might also like

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>