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

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