Cases concerning cheque bounce is one of the UAE top searches on the internet
and I am sure my readers are very well versed 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
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
Further, the beneficiary can file either one of them as a waiver to file one
case does not mean 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.