If you are a businessman based in the UAE and facing issues with bounced cheques from one of your clients, there are legal options available to help you recover your money. Previously, bounced cheques were considered a criminal offence in the UAE, but now, a drawee can file an execution case against the drawer to claim the amount of the dishonoured cheque. This can be done in accordance with Article 212 of Federal Decree Law No. 42 of 2022 on the Promulgation of the Civil Procedures Law.
Under the UAE Civil Procedures Law, a drawee can obtain an execution order in their favour and proceed with filing execution proceedings against the drawer. The court will notify the drawer of the execution proceedings and provide details such as the amount mentioned on the dishonoured cheque, court fees, legal costs, and any other fees claimed by the drawee. The drawer may propose to deposit part or the entire execution amount to the court’s treasure in favour of the drawee.
If the drawer fails to pay the execution amount within 7 days of notification, the court may issue an arrest warrant against the drawer at the request of the drawee. Additionally, if the execution amount is more than Dh10,000, the court may impose a travel ban on the drawer. The UAE Commercial Transactions Law also provides provisions in case of dishonoured cheques, allowing the bearer to seek compensation from the drawer, endorsers, and other obligors within the legal time frame.
To seek a speedy legal remedy, it is advisable to file an execution case against your client before the court of competent jurisdiction in the UAE. Alternatively, you can file a commercial case before the court with jurisdiction. Serving a legal notice initially to your client and filing a subject case along with the dishonoured cheque and other documentary evidence can help in the legal process. It is essential to seek legal advice and assistance from a qualified lawyer to navigate through the legal procedures effectively.
Seeking the expertise of a legal professional, such as Ashish Mehta, the founder and Managing Partner of Ashish Mehta & Associates, can help you in understanding your legal rights and options in recovering the money owed to you. With qualifications to practise law in Dubai, the United Kingdom, and India, Ashish Mehta can provide guidance on the best course of action to take in your case. For more information, readers can visit www.amalawyers.com or email their questions to [email protected].
