Can I Leave For Another GCC Country With A Bounced Cheque Case In The UAE?

• Published date: 11 March 2024
• Subject Matter: Finance and Banking, Litigation, Mediation & Arbitration, Criminal Law, Fund Management/ REITs, Court Procedure, White Collar Crime, Anti-Corruption & Fraud
• Law Firm: Awatif Mohammad Shoqi Advocates & Legal Consultancy
• Author: Dr. Hassan Elhais

Travelling to other GCC countries while facing a bounced Cheque case in the UAE raises important legal questions and implications. Understanding the legal framework is essential, given the potential consequences for individuals or businesses involved in such cases.

This article will explore the legal procedures, execution of judgments, and penalties associated with bounced Cheque and the possibility of leaving the UAE, incorporating three key laws: Federal Decree-Law No. 42 of 2022 on the Promulgation of the Civil Procedures Law, Federal Decree-Law No. 50 of 2022 on UAE Commercial Transactions Law, and the GCC Convention for the Execution of Judgments, Delegations, and Judicial Notifications.

Understanding Bounced Check Cases in the UAE

In the UAE, when an individual (drawer) issues a Cheque to another individual or entity (drawee) and the Cheque bounces due to insufficient funds, it initiates a legal process where the drawee can file an execution case against the drawer to recover the amount stated in the dishonoured Cheque. This process is regulated under the UAE Commercial Transactions Law, Federal Decree Law No. 50 of 2022.

UAE Commercial Transactions Law: Federal Decree-Law No. 50 of 2022

According to UAE Commercial Transactions Law Article 401, a cheque must be covered by sufficient funds or credit, and failing to do so constitutes a crime in the UAE.

Article 402 outlines the penalties for issuing a bounced cheque, which may include fines and imprisonment for the drawer.

Moreover, Article 667 explains, that when a cheque bears a notice of unavailability or insufficiency of funds and the drawee chooses to pursue legal action, the cheque becomes a writ of execution. The bearer of the dishonoured cheque can then request full or partial compulsory execution, governed by the provisions, procedures, and rules set out in the Civil Procedures Law, Federal Decree-Law No. 42 of 2022.

UAE Civil Procedures Law: Federal Decree-Law No. 42 of 2022

The UAE Civil Procedures Law Articles 223 and 224 Outline the legal procedures for filing a case against a drawer for a bounced Cheque and specify the legal procedure for submitting a bounced Cheque as evidence in court.

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