Dubai: Should you run your personal enterprise within the UAE and obtain a bounced cheque from a shopper or buyer, what motion do you have to take?
Do you pursue a authorized case for a bounced cheque by way of a lawyer or report it to the police? If you end up in a state of affairs the place a cheque you acquired was dishonoured, listed here are the steps it’s best to take within the UAE.
How can I report a bounced cheque within the UAE?
On the subject of reporting bounced cheques within the UAE, you will have two choices to report them, relying on the explanation that the cheque was dishonoured.
1. File a civil case
In keeping with the brand new UAE regulation decriminalising bounced cheques – Federal Decree Legislation No. (14) of 2020 – people who issued cheques as a result of inadequate funds not face felony costs. So, if you’re the receiver of a cheque that bounced as a result of ‘inadequate funds’, the choice out there to you is to file a civil case, in accordance with Ibrahim Khaleel Arimala, managing associate and senior authorized guide at Musaab Ali Al-Naqbi Advocates and Authorized Consultants.
“Furthermore, the aggrieved social gathering can immediately open an execution for the restoration of the quantity, if the cheque was dishonored as a result of inadequate funds. The holder of the bounced cheque can proceed with registration of a ‘efficiency order’ case earlier than the courtroom,” Arimala stated.
A efficiency order is an order for fee when fee of particular money owed doesn’t require a courtroom listening to, due to sure written proof proving the debt. So, as per the brand new regulation, the dishonoured cheque is enough proof to current to a choose and request for the enforcement of the fee by way of the property or financial institution accounts of the one who issued the cheque.
To assert your cash from a bounced cheque, you should fill out a ‘Cheque Execution Laws Type’. This type can both be stuffed out by the recipient or a lawyer representing them. For a extra detailed information on the right way to file this kind, click on right here.
Furthermore, the aggrieved social gathering can immediately open an execution for the restoration of the quantity, if the cheque was dishonored as a result of inadequate funds.
– Ibrahim Khaleel Arimala, managing associate and senior authorized guide at Musaab Ali Al-Naqbi Advocates and Authorized Consultants.
2. Report a bounced cheque by way of the police
In keeping with Arimala, you’ll be able to file a case with police authorities provided that the cheque bounced as a result of the account was closed after the cheque was issued and earlier than it was submitted for encashing, or if the signature is inconsistent with different financial institution paperwork.
“In these conditions, it’s thought-about a felony case and a felony grievance may be registered,” he stated.
It is because the actions listed above are thought-about as fraud.
In keeping with Dr Ibrahim Al Banna, CEO of Ibrahim Al Banna Advocates and Authorized Consultants, if the cheque was discovered to have bounced as a result of fraudulent means, then the defendant can be required to serve the penalty, as stipulated by the choose listening to the case.
How do I report a bounced cheque to the police?
If the cheque bounced as a result of causes listed below a felony violation, you’ll be able to report it within the following methods:
1. By way of the Ministry of Inside’s (MOI) smartphone software ‘MOI UAE’. Should you stay in Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras al Khaimah or Fujairah, you should report the bounced cheque by way of MOI app.
2. By way of the Dubai Police cell software. If the cheque was issued in Dubai, you’ll be able to file the case with Dubai Police.
3. At your nearest police station.
Reporting a bounced cheque by way of Ministry of Inside
Earlier than you register a case, you should have the next paperwork:
• Emirates ID
• Passport copy
• A letter from the applicant, duly stamped, describing why the financial institution can’t honour the cheque.
• Unique cheque
Upon getting these paperwork, comply with these steps:
- Log in to the app and select the service icon, which is out there within the police companies class – Sensible police station companies part.
- Choose the ‘Monetary incidents’ service.
- A listing of all earlier incidents will seem. To create and submit a brand new request, click on on the ADD icon.
- Settle for service phrases and circumstances to have the ability to entry the service.
- Transfer the pin on the map to find the incident location then click on on subsequent button.
- Choose the reporting technique (writing, voice recording, video recording or taking a photograph).
- Enter incidents particulars, connect any proof you will have, then click on on the ‘Submit’ button.
- Enter your private particulars.
- You’ll obtain an software quantity and may monitor the progress of your software by way of the app.
How do I report a bounced cheque in Dubai?
For reporting a bounced cheque you should have the next paperwork prepared:
• Photograph of Emirates ID
• Photograph of bounced cheque
• Discover of bounced cheque from the financial institution
Subsequent, comply with these steps:
- Obtain the ‘Dubai Police’ app from the iOS App retailer or Google Play retailer.
- Go to the ‘Providers’ tab on the backside of the cell display screen.
- Faucet on ‘bounce cheque report’ below ‘Studies Providers’.
- Faucet on ‘Open new case’.
- Select the police station – this needs to be the place the incident befell.
- Enter your Emirates ID quantity.
- Subsequent, select if the cheque was for an individual or firm.
- Then, select if the report was submitted by an applicant or an organization.
- Choose the financial institution that issued the cheque.
- Enter the cheque account quantity.
- Choose the variety of cheques.
- Enter your e mail handle.
- Add a duplicate of your Emirates ID.
- Tick the phrases and situation field and click on the ‘submit’ button
You too can comply with up on the standing of your case by way of the identical service on the app.
Submitting a bounced cheque case at your native police station
Another choice, is to file the bounced cheque case in your native police station. Nonetheless, the case needs to be filed within the Emirate the place the incident befell.
What occurs after I report a bounced cheque to the police?
If a police case is filed towards a person that has issued a bounced cheque, a journey ban may be imposed on them.
“The police will register the case and assign a file quantity. Moreover, a journey ban, and arrest warrant might be issued towards the accused. When the accused is detained by the police, the case will then be transferred to the general public prosecution after police has the assertion of the accused,” Arimala defined.