Issuing a cheque that cannot be cashed is a criminal offence under UAE law
Question: I have a cheque owed to someone. When I presented it to the bank, the cheque was rejected because the signature did not match the account holder’s signature. I tried to contact the cheque owner, but in vain. What legal action can I take against the cheque owner, and how can I obtain my rights?
Answer: You must file a criminal complaint against the cheque drawer because giving a cheque in a manner that prevents it from being cashed is considered a criminal act. The public prosecution shall impose a travel ban as the result of the complaint.
According to Article 675 of the Federal Decree-Law No. 50/2022 on Issuing the Commercial Transactions Law states:
1. Anyone who commits 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, with a minimum of Dh5,000, and a maximum fine not exceeding double the value of the cheque:
A. Instructs or requests the drawee, before the drawing date, to dishonour a cheque issued thereby in other than the cases set out in Articles (651) and (656) hereof.
B. Closes the account, withdraws the whole balance therein or knows of closing of the account before the cheque is issued or presented, or intentionally causes the freezing of the account.
C. Intentionally executes or signs the cheque in a way that prohibits it from being honoured.
2. In the case of repeat offense, the penalty shall be doubled.
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