Recovering Money after Cheque Bounce, How to Overcome ?

How Can Recover the Amount Against Bounced Cheque in UAE

The Cheque

A cheque or check, is a note/document that orders concerned bank to pay the specific amount of money from an individual account, personal account or company account.

The person writing the cheque, known as the drawer, has a transaction banking account where their money is held.

“An order to bank to pay a stated sum from the drawer’s account, which is written on specially printed form”.

The cheque is vital in almost all the areas of personal and business transaction, so it is termed as essential. The important concern of every economy, issuing or using cheque has the mode of transaction.

If incase of cheques are dis-honoured by the bank, it affects the economy badly, due to the down flow of business activity in the region. The team of legal consultant will guide you by giving the clear guidelines for recovering the money or transaction if the cheques are dishonoured by the bank in UAE, due to many circumstances mentioned below.

  • Deficient funds in the bank account on the date of realization of the cheque
  • An order to the bank to abstain from making the payment
  • Mismatching the signatures or other technical errors
  • Closure of bank account before encashment of the cheque

Cheque Bounce Circumstance

The cheque bounce circumstance happens, when the drawer issues the cheque without sufficient fund in the account or any of the above-mentioned reasons other than this. The concerned bank issues a letter of cheque bounce, and now the drawee has the right to take legal action by registering a police complaint against the issuer.

It is termed as most common financial offense, wherein the issuer of the cheque may land in legal trouble, like criminal or civil case, and also the credit ratio in Central bank/ Al Etihad credit bureau, may impact.

As per the UAE law, the drawee of the cheque can file the criminal case against issuer of the cheque, but again after filing a criminal case the drawer would not receive the cheque amount, or payment, since the criminal case is obliged the issuer to face criminal penalties such as imprisonment or fine to be submitted to the court, as per the present conditions herewith.

Also the drawer can issue a legal notice to the issuer of the cheque to initiate the procedure for resolving the dispute amicably, and again if the issuer, does not heed or respond to the legal notice, the drawee is forced to register the civil case against the issuer. The civil case is filed in the court, by producing all the relevant docs with the help of a lawyer, along with Arabic translated docs to be produced for evidence to prove the standing. The court acts upon this after receiving documents submitted in Arabic version and after hearing all the arguments with both parties the court issues the judgment against the defaulters, or as the case stands by.

The law of the court examines the case thoroughly, and gives the final verdict, adhering to principles of Sharia. Hence to defend and to receive the best outcome the legal team at Tasheel legal Consultancy would guide you through further for better understanding. The alternative way other than filing a civil case is appointing a debt collection agency, who are capable to collect it diplomatically, which can save all the court charges and legal time.

Tasheel Legal Consultancy, professional lawyers can help you in Recovering money after Cheque Bounce case in UAE including all the emirates Dubai, Abu Dhabi, Sharjah, Ajman, Fujairah, RAK and Umm al Quwain.

Call us: +97165363791 | +971 501750107 | +971 501758799