Travelling to other GCC countries while facing a bounced Cheque case in the UAE raises important legal questions and implications. Understanding the legal framework is essential, given the potential consequences for individuals or businesses involved in such cases.
This article will explore the legal procedures, execution of judgments, and penalties associated with bounced Cheque and the possibility of leaving the UAE, incorporating three key laws: Federal Decree-Law No. 42 of 2022 on the Promulgation of the Civil Procedures Law, Federal Decree-Law No. 50 of 2022 on UAE Commercial Transactions Law, and the GCC Convention for the Execution of Judgments, Delegations, and Judicial Notifications.
Understanding Bounced Check Cases in the UAE
In the UAE, when an individual (drawer) issues a Cheque to another individual or entity (drawee) and the Cheque bounces due to insufficient funds, it initiates a legal process where the drawee can file an execution case against the drawer to recover the amount stated in the dishonoured Cheque. This process is regulated under the UAE Commercial Transactions Law, Federal Decree Law No. 50 of 2022.
UAE Commercial Transactions Law: Federal Decree-Law No. 50 of 2022
According to UAE Commercial Transactions Law Article 401, a cheque must be covered by sufficient funds or credit, and failing to do so constitutes a crime in the UAE.
Article 402 outlines the penalties for issuing a bounced cheque, which may include fines and imprisonment for the drawer.
Moreover, Article 667 explains, that when a cheque bears a notice of unavailability or insufficiency of funds and the drawee chooses to pursue legal action, the cheque becomes a writ of execution. The bearer of the dishonoured cheque can then request full or partial compulsory execution, governed by the provisions, procedures, and rules set out in the Civil Procedures Law, Federal Decree-Law No. 42 of 2022.
UAE Civil Procedures Law: Federal Decree-Law No. 42 of 2022
The UAE Civil Procedures Law Articles 223 and 224 Outline the legal procedures for filing a case against a drawer for a bounced Cheque and specify the legal procedure for submitting a bounced Cheque as evidence in court.
Articles 233 to 235 explain the procedures for initiating execution of judgments, including notification to the debtor. Failure to comply with court orders can result in penalties such as travel bans. The law may offer the drawer the option to propose payment to the court to resolve the matter.
GCC Convention for Execution of Judgments
As per Article 1(a), the GCC Convention for Execution of Judgments enables the enforcement of judgments across GCC countries. It states that each GCC country shall execute final judgments issued by the courts of any member state in civil, commercial, and administrative cases, as long as the issuing court has jurisdiction according to the laws of the member state where execution is sought.
Travel Ban Implications
In the UAE, if the execution amount exceeds Dh10,000 and the drawer fails to comply with court orders upon being served with notice, a travel ban may be imposed.
Travelling to Other GCC Countries
If no travel ban is imposed in the UAE, an individual with a bounced check case may consider travelling to another GCC country. However, it is essential to consider that the individual to whom the dishonoured check was issued may file an execution proceeding against the drawer in the GCC country where they reside. The GCC Convention for Execution of Judgments ensures the enforceability of judgments across GCC states.
In conclusion, understanding the legal implications of bounced checks in the UAE and the GCC region is essential for individuals and businesses. It is important to recognize that execution proceedings can cross borders, emphasizing the significance of resolving such cases within the framework of UAE and GCC laws.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
