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Monday, January 24, 2022

Bounce cheque case: Dubai courts begin implementing new amendments to commercial transaction law

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Dubai courts started carrying out new amendments to the Commercial Transactions Law that decriminalize issuing cheques without sufficient funds.

According to federal law 14 of 2020, that was refreshed in October 2020, cheque beneficiaries or bearers don’t have to document criminal or civil cases for non-payment of the cheque.

They can straightforwardly move toward the court’s execution Judge to order payment of the really take a look at’s worth or what is surviving from it.

Banks are also obliged to make halfway payments by releasing any accessible funds in the bank account to support the cheque carrier unless the recipient disagrees.

In any case, in cases where individuals intentionally issue cheques to con others out of cash, will still be criminalized.

“The criminalisation has been restricted to cases of extortion in issuing a cheque or in cases where there were sufficient funds however were withdrawn by the issuer,” said Judge Khalid Almansouri, Chief Judge of Enforcement Court at Dubai Courts.

He said criminalisation was supplanted with faster and easier procedures that give beneficiaries their rights and secure them.

“This is in accordance with the initiatives and strategic plans of Dubai to support a sustainable economy and accomplish faster more precise justice that represent the vision of Dubai Courts of becoming distinct courts worldwide.”

In 2017, Dubai’s attorney general, Essam Al Humaidan moved cases of bounced cheques – among a scope of other minor offenses – outside of courts.

The decision – known as the Penal Order – authorized Dubai prosecutors to issue fines against offenders instead of alluding them to the courts.

Fines against bounced cheques up to Dh50,000 are Dh2,000, while those who bounce cheques of somewhere in the range of Dh50,000 and Dh100,000 were fined Dh5,000, and a Dh10,000 fine for bounced cheques somewhere in the range of Dh100,000 and Dh200,000.

Last year, 16,289 cases were settled out of Dubai court under the Penal Order, which included Dh48.1 million ($13.1m) in fines.

Bounced cheques of around 13,517 cases, accounted for 83% of all cases that were settled without going to court.

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