Showing posts with label check return case in Dubai. Show all posts
Showing posts with label check return case in Dubai. Show all posts

Cheque bounce/Insufficient fund Case Reporting-Dubai

How to report bounced cheque case in Dubai?

 Option 1: Apply online
Whether it is individual or company, you can apply through Dubai Police online service. Click here

 Required Information:
Emirates ID Number (applicant)
Cheque Bank Name
Cheque Bank Account
Number of Cheques (maximum 5 cheques in one application)
E-mail

 Option 2: Apply manually
A complaint letter in Arabic in letterhead bearing the stamp of the company/firm. Letter shall include name of Issuing party, Address, contact number, Cheque number, Date, Amount, Name of Bank and purpose of issue.+ Trade License copy of both companies (Passport copy if the party is a person).

+ Bounced Cheque original and copy along with bank report 
+ Authorization letter/Power of Attorney for the complaint reporting person.

Procedure+ Submit above mentioned documents to the nearest police station, along with Dh20 as fees. + The report will be investigated internally and you will be given a serial number.
+ The Department of Investigation will contact the issuing party to recover the money amicably, if failed, will take legal actions against him and put the case in nation-wide criminal record.

Report bad cheques through Dubai Police App+ People can now report bounced cheques through the Dubai Police App or mobile website without visiting police stations. The feature is available on the app under mobile services.

STEPS: Take photos of cheques, fill a quick form with some details, and the police will then issue the sender a letter, which the user can then take to the bank. The bank will then deal with the police for the rest of the procedures.

There are two conditions to reporting a bad cheque: It should be issued within Dubai and the validity period of the cheque to be cashed has not expired. 
Fines for bounced cheques
Bounced cheques worth Dh1 to Dh50,000: Dh2,000
Bounced cheques worth Dh50,000 to Dh100,000: Dh5,000
Bounced cheques worth Dh100,000 to Dh200,000: Dh10,000

In case of Civil Case:
If Civil Court rules in favour of the plaintiff, the accused could be asked to:
Pay full value of the cheque
Pay 12 per cent interest starting from the issue date
Pay Legal charges
Face travel ban

Have assets frozen until final judgement
Victims can file civil cases against those who issue bounced cheques
According to the Legal Order Law No 1 of 2017 which came into effect in December 2017, people with bounced cheques worth less than Dh200,000 can be punished by prosecution without the case being referred to the judges, with the payment of a maximum fine of Dh10,000.

However, the issuer of a bounced cheque should not think that he can pay the fine and get absolved, as the receiver of the cheque can assert his rights by going to the Civil Court.

Under the UAE law, the victim has three years to file the civil case from the time the issuer was convicted and paid the fine.

If the Civil Court rules in favour of the plaintiff, a 12 per cent interest rate will also be added to the value of the cheque starting from its issue date. The accused is obliged to pay the amount.

The court can also order the accused to pay legal charges and the complainant is entitled to request the court to issue a travel ban against the person who wrote the bounced cheque.

Frequently Asked Questions
Cheque is proof of money lent

 Q: I lent Dh200,000 to one of my friends in November 2008 and got an undated cheque against it from him. After promising me that he would repay the amount for the past two years, he has now refused to do so. Can I initiate a criminal case against him?

A: To initiate a criminal case against the debtor, you have to produce a bounced cheque to the police. Hence, you have to deposit this cheque to your account and if it returns bounced, then you are entitled to report this to the police. Alternatively, you can proceed with a civil suit directly based on the cheque as it is a proof of debt.

Stale cheque
Q: What is the liability of the drawer of a stale cheque in Dubai? Is the drawer obliged to write another cheque in exchange for a stale cheque?
A: Generally speaking, a cheque is given for payment of any underlying transaction. Hence, it is the duty of the drawer to pay the amount either by giving another cheque or by paying in cash.

Furthermore, a stale cheque cannot be deposited in the bank. However, the same stale cheque is still valid for establishing a civil right of claiming the amount of the cheque from the same person.

Thus, you got a right to file a civil case within 15 years against the drawer for the amount of the cheque as per Article 473 UAE Civil Code.
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Conviction: Criminal court or civil court

The criminal court and civil court function separately. When the reciever of a cheque (which bounced) files a complaint in the police station against the issuer, the case is forwarded to the public prosecution and then to the criminal court. The criminal court may convict the issuer (based on evidence provided by the complainant) and give him two options - pay the money or go to jail.
However, in case of failure to get cheque amount despite imprisonment, the complainant should present his case to the civil court to claim the money along with documents and evidence to prove it. The civil court could then either demand the issuer to pay or face jail term.

Completed jail term; what next?
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, he or she will have to pay the unpaid amount or go back to jail. In case there is no pending or second case once the jail term is completed, the person is free to leave the country after collecting his impounded passport.

Who signed the cheque?
In companies or partnership firms, not all partners or stakeholders can be held liable in the event of a cheque being issued without sufficient funds to pay it off. The criminal liability shall be borne by the individual who signed the cheque - whether it be a manager or another partner. Other people's private funds have no bearing on the value of the cheque. Its value shall be realised only through the assets of the company.

However, if the losses or lack of funds, which resulted in the cheque bouncing of the company, are proven to be a result of any kind of fraud by the owners or partners, the case may take a different direction.

Owners or managers abscond
If it is proved that the company, which the complainant has dealt with, does not have enough funds to settle the cheque's value, he or she can file a criminal case against the manager who signed the cheque, even if he or she has left the country. After a judgement is issued, the questioner may request the concerned authority to include the manager's name in Interpol's wanted list. (GN)+ Dubai Police Website: www.dubaipolice.gov.ae  
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bounced cheque cases in the UAE
1. Who convicts the cheque issuer
The criminal court and civil court function separately. When the receiver of a cheque (which bounced) files the initial complaint in the police station against the issuer, the case is forwarded to the public prosecution and then to the criminal court. The criminal court may convict the issuer (based on evidence provided by the complainant) and give him two options - pay the money or go to jail.

However, in case of failure to get cheque amount despite imprisonment, the complainant should present his or her case to the civil court next, to claim the money, along with documents and evidence to prove it. The civil court could then either demand the issuer to pay or face jail term.

2.Unable to pay after jail term
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. In case there is no pending or second case once the jail term is completed, the person is free to leave the country after collecting his impounded passport.

3. Who is liable for a corporate cheque
In companies or partnership firms, not all partners or stakeholders can be held liable in the event of a cheque being issued without sufficient funds to pay it off.

The criminal liability shall be borne by the individual who signed the cheque - whether it be a manager or a partner/co-owner. Other people's private funds have no bearing on the value of the cheque. Its value shall be realised only through the assets of the company.

However, if the losses or lack of funds which resulted in the company-issued cheque bouncing, are proven to be a result of any kind of fraud by the owners or partners, the case may take a different direction.

4. What if owners or managers abscond
If it is proved that the company, which the complainant has dealt with, does not have enough funds to settle the cheque’s value, he or she can file a criminal case against the manager who signed the cheque, even if he or she has left the country. After a judgement is issued, the questioner may request the concerned authority to include the manager’s name in Interpol’s wanted list.

Always keep a copy of all the personal cheques you sign for banking, renting or any other purposes. A photo is more than enough to ensure that when the obligation is done, you can keep track of due cheques and cancelled ones (like security cheques given to banks for personal loans).

If you're a manager or accountant authorised to sign cheques, have email trails for every cheque signed no matter the amount. Even if your boss asks you to sign a cheque, ultimately the person who signed is liable to a major extent. Again, keep copies of the cheque and correspondence.
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What the law does if a cheque is bounced
What will happen if your cheque bounces in the UAE or you default from paying your loan? A criminal and civil case will be filed against you. But the criminal and civil courts function separately.

 The difference between the civil lawsuits and the criminal cases is wide.

 The civil lawsuits have laws, procedures, courts and judges independent from the criminal cases. The criminal cases are subject to the penal codes and always start at the police stations. Complaints and reports are lodged there and then referred to the public prosecution, from where the cases proceed to criminal trials.

 Civil lawsuits are claims ensuing from contracts and investments; civil and commercial laws apply thereto. Those cases are directly registered at courts.

 Signing and issuing a bounced cheque is a crime which bears a penalty of a jail term or a fine, as per the Penal Code. If the defendant pays up the cheque amount or reaches a settlement with the complainant, the criminal case is closed. A reconciliation or settlement between the two parties cancels the penalty and the convict walks out of jail.
A complainant can seek to file a civil lawsuit to claim the cheque amount from a person even when the latter just walked out of jail after serving his term. This means that the criminal penalty does not spare a person from paying his financial liabilities. If the parties are traders, then the Law of Commercial Dealings shall apply.

Dubai Police Call Centre: 901
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