Cheque is negotiable instrument which allows withdrawing money from a bank by the drawer or the bearer in favor which the cheque is drawn. When the drawer draws a cheque in a name (payee), the cheque stands valid only when the payee approaches the bank or the bearer with the endorsement of the payee backside of the cheque. A cheque stands valid only for a period of 3 months after which it is called a stale cheque. The cheque get dishonored for many reasons such as absence of insufficient balance , mutilation of cheque, stale cheque, strike of in a cheque , cheque drawn on bad will. The cheque dishonor or cheque return stands against the law. And there are many cheque bounce cases filed against the drawer who draws the cheque unlawful without providing sufficient funds in their account.
![]() |
| Cheque Bounce Cases in Dubai : Al Ittihad |
Many regulations have been framed for the cheque bounce cases and they have been streamlined in a proper way;
Negotiation with drawer:
First thing, when a cheque gets bounce the payee of the cheque has the legal power to negotiate with the drawer, if the drawer is not convinced the payee of the cheque can even file a case against the drawer who has drawn the cheque with a bad will
Even after the filing a case if the drawer does not responds, then the case may be preceded to the public prosecution and drawer is given a certain period of time within which he needs to repay the money to the payee. If the drawer defaults at this point The case will be further moved on to a civil court were the drawer may even sentenced to jail or he will be in a travel ban with the passport submitted at court till he repays the money with fine.
Fine and Detention:
Never the less, when a cheque is bounce in Dubai the drawer of the cheque can be sentenced to detention or fined by the court. The detention may be not less than one month and not more than one year. And of the drawer is fined. The fine amount will be not less than 1000AED and not more than 300000AED which is payable to the court and not to the payee.
Volume of case and punishment:
Due to the volume of case file in the court remains in increasing trend. This becomes the job of the legal authority to segregate the cheques with the lower value and one with a higher one, as the punishment depends on the value of the cheque.
Adjustment:
Taking in mind of adjusting the volume of cheque bounce cases, which places stress to police, public prosecution, and court you need to think over. The UAE authorities have decided to put in place a one day court that would scrutiny the severity of the cases, if it a low value cases the concerned will be fined a the spot and the case gets closed . And if it gets even more serious this would end up in detention.
The fine amount for bouncing a cheque amount of AED 200000 or lesser will be not lesser than AED 5000 and not more than AED 10000 failed to pay the drawer may be sentenced by the court and there he should pay the fine or accept the detention. This gives the power of to the creditor by getting a cheque not lesser than AED 200000.
Al Ittihad is one of the best legal firms in Dubai deals in cheque bounce cases and solves your disputes.






