The UAE government’s recent amendments to the Commercial Transactions Law have streamlined the process of debt recovery in cases of cheque bounce due to insufficient funds. The new provisions, introduced earlier this year, have received widespread appreciation from the business community for making the debt recovery process more straightforward and efficient.
Previously, creditors had to go through a lengthy legal process involving police complaints and civil proceedings to recover their dues. The new amendments, however, have introduced cheque execution procedures that eliminate the need for civil proceedings, making debt recovery more straightforward.
The amended law restricts the criminal aspect of the cheque return to specific cases involving intentional falsification, fraud, counterfeit cheques, and account balance withdrawals before the cheque encashment date. The new approach is more beneficial to creditors as it allows them to initiate the cheque execution procedure by submitting an application in court.
The new provisions also provide a range of execution procedures for creditors to recover their dues, such as filing applications at the Central Bank, the Road and Transport Authority, the Dubai Land Department, and the Economic Department to seize the counterparty’s bank account, vehicles, property, and trade license, respectively.
The amendments have already proved effective, with the entire cheque execution procedure taking approximately three weeks to complete, and there is no minimum or maximum limit to the cheque value for an arrest warrant to be issued.
In summary, the government’s move to amend the Commercial Transactions Law is a significant step towards streamlining the debt recovery process and promoting a business-friendly environment in the UAE. The new provisions provide a swift and efficient way for creditors to recover their dues, and this will help boost business confidence and promote economic growth.