Cases concerning cheque bounce is one of the UAE top searches on internet and I am sure my readers are very well verse with the consequences of issuing cheque which can be dishonored or which has already been returned by the bank. Civil Lawyers of Dubai have successfully represented legal or natural persons in cheque bounce cases be it in civil or criminal court.
Federal Law Number 18 of 1993 regarding Commercial Transactions Law regulates or governs the transactions in relation to cheques. Subsequently, Federal Law Number 3 of 1987 on Penal Code of UAE along with relevant laws issued by respective Emirates imposes criminal penalties on individuals or companies issuing cheques that have been dishonored or returned by the bank. It is commonly accepted by the courts and the law that the beneficiary or the holder of a bounced cheque can file a criminal and a civil case against the issuer. Wherein, a criminal case works as a deterrent for the issuer and allows him to settle the matter with the beneficiary to prevent any further lawsuit.
It is important to note that criminal cases are only filed to impose a criminal penalty varying from fine to imprisonment, however, a civil case is registered to seek the amount of the cheque along with any compensation for delay and interest. In order to receive the true amount of the cheque, the beneficiary is obliged to register a civil case apart from the criminal. Nevertheless, these two cases are often mistaken with one another as are considered are mandatory to proceed with another. It is pertinent for our readers to be aware of the fact that a criminal and a civil case for the same bounced cheque can either run parallel or can be filed consecutively.
Further, the beneficiary can file either one of them as a waiver to file one case does not mean a waiver to file another. If ever the complainant files a civil case for the bounced cheque prior to a criminal case or without a criminal case, it shall NOT be considered as a waiver of his beneficiary rights or his rights to file a criminal case at a later stage. This rule has also been approved by courts of UAE under Court of Cassation case number 337 of the year 2003 issued on 27 December 2003.
It is strongly recommended to seek legal advice prior to registering a civil or a criminal case in order to ascertain the true status of both the matter and to weigh future consequences from Legal Experts in Dubai.
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