What Do You Need To Know About Cheque Bounce Issues & Cases In UAE?

 

In the UAE, the cheque bounce is a very common and frequent problem faced by the people during their span in the country. It is usually covered under the purview of a criminal offense in the UAE and legal implications or penalties can be financially severe and daunting. Cheque bounce issues & cases in UAE is common in commercial sectors since they do many transactions, exchanges and so on. This is not limited only to companies but it affects when there is bank loans, property rents, purchases and many more.

The cheque bounce issues & cases in Dubai can be attributed to several reasons but primarily due to the debtor’s failure of paying the debt to the creditor on a specific date agreed thereon. Cheque cases are extremely serious in Dubai and other emirates in the UAE. A cheque which is returned or dishonored can lead to the civil case, criminal case or both. The factors which lead to the cheque being dishonored are:

1.    Insufficient funds in the bank account on the date of issuance of the cheque.

2.    An order to the issuer bank to refrain from making the payment.

3.    Mismatching signatures or other technical errors.

4.    Closure of the bank account before encasement of the cheque.

How to get legal advice on cheque bounce issues & cases in UAE:

We all know that a filled and signed cheque acts as an authority to the bank to disburse the money of the drawer. As a cheque issuer, you must be aware of all the cheque bounce issues & cases in UAE so that you will be careful while handling all the transactions with a cheque. You must also satisfy the conditions while using the cheque for any commercial or personal transactions. A bounced cheque is the situation when the payee presents the cheque to the bank but it is rejected by the drawer bank.

A cheque is the payment instrument which used with liability during any transactions. Since there are many reasons for the bonce cheque the payment failure will happen. But during these times, the bank will provide the grace period to handle all the issues. But the bearer had no legal obligation to resolve this issue with the drawer through direct contacts rather than using the legal proceedings. Such proceedings will be taken as the course of a criminal or a civil case.

Whether you are an issuer or a payee, you can get the legal advice on the cheque bounce issues & cases in Dubai. For this, all you need is to find the right consultancy where the experienced lawyers will help you in handling these issues. They will help you understand the different types of cheque bounce issues & cases in UAE and your case so that you will have a better understanding of the current situation. They will also help in with the future proceeding and ways to handle the issues. Thus, when you handle transactions with cheque make sure you avoid any cases or issues with it. Even if you encounter any issues, then get the legal advice from the lawyers.