Bounced cheque cases don’t end with prison term or a fine in UAE

Contrary to the popular belief that bounced cheque cases in the UAE can be closed by just paying a fine. It is within the rights of the victims to file civil cases against those who issue such cheques.

The legal order legislation approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, through Law No (1) of 2017, helps to improve the judiciary’s efficiency and reduces its workload while fast-tracking the litigation process in Dubai.

According to the Legal Order Law No 1 of 2017 which came into effect on December 2017, people with bounced cheques worth less than Dh200,000 can be punished by the prosecution without the case being referred to the judges, with the payment of a maximum fine of Dh10,000.

Judge Ayman Al Hakam of the Dubai Courts said 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.

“The issuer of the bounced cheque may think all that he needs to do is pay a fine if he can’t settle the case. But the victim can still exercise his rights by opening a civil case against the issuer of the cheque for the amount of the cheque plus compensation. Bounced cheque cases don’t end with paying the fine,” he noted.

The order fined people accused of issuing bad cheques for amounts not exceeding Dh200,000 between Dh2,000 and Dh10,000 depending on the cheque value. “But paying a fine is not the end to this case, the plaintiff can legally file a civil lawsuit against the person who issued the cheque to claim its value.” 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 along with legal charges.

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 the 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

Dubai announces major changes to justice system

Dubai Courts

Dubai is to overhaul its court's system to cut the time a case takes from up to 300 days to 30 days.

Dubai Courts on Monday said it would merge the three courts - first instance, appeal and cassation - into one to improve efficiency and cut costs.

This means three judges will hear each case at the same time under the new 'C3' system.

Previously, the three courts each heard entire trials and issued their own judgments on cases typically spanning months or longer.

It is not expected that judges would physically sit together in the same hearings - but that the whole process would run concurrently and be completed in one month.

Tarash Al Mansoori, director-general of Dubai Courts, said: "The courts' project will merge the three levels of litigation into a single court consisting of three judges, each representing a level of litigation - first instance, appeal and cassation."

He said the move will shorten litigation time, simplify procedures, reduce costs and end prolonged judicial proceedings.

At present, the court said cases take up to 305 days between the filing of the complaint or charge and a judgment.

A case is seen by up to 11 judges and three clerks and Dubai Courts currently handle about 60,000 criminal and civil cases per year. Under the new system, it aims to cut that to three judges and one clerk.

Al Mansoori told The National that the intention is not to prevent a convicted person from appealing.

There would be the ability to file a petition for a judgment to be reconsidered - but not a retrial.

He said a new law is being looked at within a time frame of two years set by out by Sheikh Hamdan bin Mohammed, the Crown Prince of Dubai.

“Within these two years, the new law should be drafted and approved and the C3 court should begin working," he said.

UAE introducing Video conferencing in civil trials from 2018

A new law approved by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan will further promote rule of law, fast-track civil trials and keep pace with advanced technologies, Sultan Bin Saeed Al Badi, Minister of Justice. Al Badi said changes in the Civil Procedures Code will allow, starting from next year, video conferencing in civil court trials and specialised courts to hear labour, financial, contracting and intellectual property, among other, cases.

“Inspired by the French Tribunals de Commerce, these courts will be presided by a judge, but other members on the bench will be experts, but not career judges,” Al Badi said in a press briefing held at the Ministry of Justice.

Al Badi added rulings will be given by the presiding judge, but experts will assist the judge come to the final conclusion.

Al Badi said that this fast-track justice for individuals as these courts will ensure quicker verdicts without impacting the integrity of law as well as save expert charges which burdened litigants.The Justice Minister said the changes will also allow video conferencing in civil trials. Defendants, witnesses, experts and translators will appear through video conferencing.

The move, Al Badi said, is also meant to avoid unnecessary delays and backlog in civil trials.

Al Badi said the law would also make it easier for police and prosecutors, as investigators would not have to carry the case files from one spot to another.

The law applies the same conditions as regular court hearings, including confidentiality of procedures that have been filmed, and protecting the material from being exchanged, copied or deleted, except with permission from the court.

Videoconferencing would also be of particular benefit in judicial procedures with foreign countries and testimonies by overseas experts.

Al Badi said the UAE has a judicial system that is on a par with global standards that ensures the rights of society, both individuals and organisations, and effectively contributes to achieving the desired goals of strategic plans that sustain the UAE’s competitiveness.

The Justice Minister affirmed that by introducing these changes into the Civil Procedures Code, the UAE aims to become among the world’s top performers in rule of law.

“A strategic goal of the UAE is to become one of the top 25 performers in the World Justice Project (WJP) Rule of Law Index, during the next five years,” the minister said.

Last year, the UAE was ranked 33 in the Rule of Law Index, whose results strengthen the UAE’s status as a leading trade, finance, investment and tourism hub with a distinguished record in the rule of law, justice, safety, security and other unique features.

According to the index, the UAE’s overall rule of law performance places it at 30 out of 36 among high-income countries; and 33 out of 113 countries and jurisdictions worldwide.

Independent Execution Court established in Dubai

Dubai Courts have announced the establishment of an independent Execution Court to improve the efficiency of the judicial system, it was announced on Tuesday.

The establishment comes under Resolution No (8) of 2016 issued by Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai and Chairman of Dubai Judicial Council.

Under the resolution, Judge Abdullah Ahmad Ali Al Kaitoob is appointed the head of the new Execution Court which serves as a significant addition to existing specialised courts which include the Civil, Labour, Real Estate, Commercial, Criminal and Personal Status courts.

The move comes in response to the growing need for an independent court to address the increasing number of execution cases.

Tarish Eid Al Mansouri, director general of Dubai Courts, explained that the introduction of the Execution Court is significant for the development of the judicial industry as it serves as a cornerstone for enhancing the UAE’s position in the World Bank’s annual Global Competitiveness Report by expediting verdicts on execution cases.

He said that this move lays a solid foundation for improving execution durations which is one of the main challenges in contract execution and an issue that made Dubai Courts rank 144th in the 2015 Report.

He emphasised that a specialised court for executions will play a pivotal role in achieving the ambitious vision of creating “pioneering and internationally distinguished courts” capable of completing cases swiftly. He added that the move will positively impact local and global confidence in the legal and judicial system.

“We seek to activate the institutional role of the Execution Court through the development of an independent strategic plan that is closely linked to the goals of the Strategic Document 2016-2019 which ensures that justice is served accurately and swiftly, providing easy access to judicial services and upholding the values of justice, independence, transparency and innovation,” he said.

“We welcome the establishment of the Execution Court which will help measure the strategic performance indicators of execution cases included in the Strategic Document 2016-2019 accurately and efficiently. It will help us sustain our success in strengthening the judicial system based on the pillars of neutrality, impartiality, transparency, justice and equality to consolidate the global leadership of Dubai.”

The establishment of the Execution Court paves the way for the development of an independent strategy for execution cases, similar to other specialised courts of the first instance, that preserves the influential role of managing execution cases in a manner that embodies Dubai Courts’ goal of effectively dispensing justice. The new court will adhere to a comprehensive operational plan that includes various quality initiatives and programmes for improving the implementation of provisions