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Bounced Cheque Dispute in the UAE

Bounced Cheque Dispute in the UAE


Case: My check was not accepted because I was in default in paying the rent. I canceled the check but my landlord refuses to return the deposit. I have traveled out of the UAE and have now been told that my name is blacklisted and that I could be arrested the moment I return to the country. I have already paid the amount due and I don’t owe a cent. How can I legally resolve this issue and return to the UAE?

We assume that your landlord has filed a criminal complaint against you in the emirate of Dubai. Therefore, the provisions of Federal Law No. (3) of 1987 on the issue of the penal code modified by federal law no. (34) of 2005 (the “criminal law”) and Dubai law no. (1) of 2017 to the Criminal Order (the “Dubai Criminal Order Law”) are applicable.

It should be noted that non-compliance with a payment is a criminal offense in the United Arab Emirates. This is in accordance with Article 401, which states: “A prison sentence must be imposed on anyone who, in bad faith, withdraws a check without any existing or withdrawable provision, or who, after having issued the check, withdraws all or part of the fund until the balance becomes insufficient to pay the amount of the check, whoever orders the withheld not to pay the check, or deliberately makes or signs the check in such a way as to prevent payment. anyone who initiates or delivers to another a check made out to the bearer is punished, even though they are aware that there are no existing funds to cover its value or that it cannot be withdrawn.

The criminal action lapses if the payment is made or waived after the crime has occurred and before it has received a final sentence. If this occurs after the decision has become final, its execution will be suspended. “

According to the aforementioned provision of the law, even if the issuer of the check is subject to sanctions or imprisonment or both, if the checks are dishonored, the last part of that provision of law states that the penalty can be avoided if the amount of the check is paid in full to the beneficiary or if the beneficiary of the allowance waives his right to collect the deed of the dishonored check .

Also, assuming that the criminal complaint was filed against you by your landlord in the emirate of Dubai, it can be noted that under the provisions of the Dubai Criminal Order Act, if the amount of the check is less than Dh200,000, the penalty can be a fine and the fine can vary between Dh2,000 and Dh10,000 depending on the amount of the check.

Therefore, as you are located outside the UAE, you can issue a power of attorney to a lawyer (the “POA holder”) in the UAE which should be notarized and legalized in the country where you currently reside. Subsequently, the same must be certified by the Ministry of Foreign Affairs and International Cooperation in the United Arab Emirates. The POA holder, on your behalf, can go to the Dubai Public Prosecutor’s Office or Police Station where the criminal complaint is filed against you by your landlord and submit documentary evidence confirming that you have paid all rental amounts due the landlord and landlord shouldn’t have used the security check to bring a criminal case against you.

edited by IICUAE on source Khaleej Times