UAE: Help, cheque not encashable as borrower's sign does not match specimen signature

Question: A year ago, I lent someone money. In return, he gave me a security cheque equivalent to the loan amount. When I presented it to the bank. It turned out that the cheque cannot be encashed due to a non- matching signature. What is the appropriate legal action I should take in this case of fraud?

Answer: You have to raise a criminal complaint in the case, because signing a cheque in a way that intentionally prevents you from encashing it is considered a criminal act according to Article 675 of the Federal Decree-Law No. 50/2022 Issuing the Commercial Transactions Law.

The law states that anyone committing either of the following actions shall be sentenced to serve prison for a period of not less than six months and not more than two years and/or pay fine of not less than 10 per cent of the cheque value, of a minimum Dh5,000, and shall not exceed double the value of the cheque; instructs or requests the drawee, before the drawing date, to dishonor a cheque issued thereby in other than the cases set out in Articles 651 and 656 hereof; closes the account, withdraws the whole balance therein or knows of closing of the account before the issue of cheque, or before the presentment of cheque to the drawee for drawing, or intentionally causes the freezing thereof; intentionally executes or signs the cheque in a way that prohibits honouring thereof; in case of repeat, the penalty shall be doubled.

Moreover, if conviction is judged according to Article 679 of the same law, the court may order the withdrawal of cheque book from the convict and prohibition of issue of new books to him for a period of not more than five years.

The convict shall be sentenced to pay fine of not less than Dh50,000 and not more than Dh100,000 if the cheque book in his possession is not delivered to the related banks within 15 days from the date of service thereon.

Article 681 also gives the court the right to order the prohibition of practice of any commercial or professional activity by the convict for a period of not more than three years if the crime is committed due to or on the occasion of the practice of such activity.