Published on: 01-02-2025
Authored by: Admin
In the United Arab Emirates, bounced cheques require specific legal procedures. As of 2022, the UAE has decriminalized bounced cheques, except for the ones issued in bad faith. This indicates that legal charges may not be withheld, except for some legal procedures. Issuing a legal notice is one of these. This article gives a comprehensive understanding of sending a legal notice, its benefits, and everything you need to know about bounced cheques.
A legal notice for a Cheque bounce is a formal communication sent by the payee to whom the cheque was issued to the drawer, who issued the cheque. This serves as a warning that your cheque has failed due to insufficient balance or other reasons. Though the payee can draft and send the notice by themselves, it is advised to contact a Criminal lawyer in Dubai to meet all the legal requirements of the UAE. This legal notice contains all the details and a legal warning before initiating legal proceedings.
A Cheque bounces when the person who gave you the cheque doesn’t have a sufficient balance or has another issue, in this case, the bank will return the cheque unpaid. This means you don’t get the promised amount as the bank has refused to process the cheque. Common reasons for cheque bounces may include:
• Not enough money in the account
• The bank account is inactive
• The signature on the cheque does not match
• Cheque may be altered or damaged
A legal notice is a formal warning to the concerned party to resolve an issue before taking legal action. In cases of cheque bounces, one must send a legal notice within 30 days of receiving the bank’s cheque return. This provides the drawer with 15 days to pay before the legal action.
Let us look at the steps to be followed to issue a legal notice for cheque bounces, these are:
Before sending a legal notice, ensure the conditions for a legal notice. Ensure the cheque was presented to the bank within its validity period, typically six months from the date of issuance. Confirm the reason, this will help you make a decision. Ascertain the cheque was issued to settle a debt.
One should try speaking with the person who issued the cheque. They may be able to resolve the matter before taking legal action. Sending a legal notice—a documented formal letter stating that if they do not settle the matter in a few days, you will take legal action—may be the recommended step.
A legal notice must contain:
• The name and details of the cheque issuer
• The cheque amount, number, date, and the reason provided bank for its return
• A statement confirming that the cheque was issued to discharge a debt
• A demand for payment within a fixed period
• Potential legal consequences if the payment is not made
It is advisable to consult a professional before taking any action. They will help you draft a legal notice that meets the requirements. Also, keep a copy of the delivery received to get proof.
If the issuer fails to respond to the legal notice, you can file a report. In Dubai, there is an online service to report bounced cheque cases. You’ll need certain documents, such as
• A copy of bounced cheques
• A copy of Emirates ID or passport
• Bank’s notice detailing the reason for the cheque’s return
If the cheque issuer still doesn’t pay, you can file a civil case in court.
There are various benefits of sending a legal notice, let’s discuss these:
• This acts as a legal compliance.
• A legal notice provides an opportunity for settlement before taking legal actions, many such cases get resolved before reaching court
• This will act as written proof of your demand for payment. Failing to do so will make your case strong.
• A legal notice acts as a warning of the serious consequences if they fail to settle the matter.
• This saves time, and legal costs and is a crucial step before taking legal action.
Cheque bouncing is not a criminal offense, though it can lead to serious consequences. The issuer may face a travel ban in some situations. They may have to pay financial penalties imposed by the court. Another issue may be that the recipient may ask for a cheque amount plus interest and legal fees. Thus, avoiding the situation is crucial. If you are stuck somewhere, get in touch with a Criminal lawyer in Dubai to handle the charges.
Due to various challenges, it is best to avoid Bounced Cheques, follow simple steps to be safe:
• Ensure you have sufficient balance before issuing a cheque
• Use online transfers instead of cheques
• Communicate with the recipient if there’s an issue
• Avoid post cheques, unless you are sure that you will have sufficient funds
• Carefully examine before issuing a cheque
If you receive bounced cheques, you should send legal notice without worrying. UAE has a defined procedure for dealing with such cases. Start by asking the issuer for a reason, then send a legal notice if required. HL&A provides expert legal guidance and can help you recover your money efficiently. They are a team of the best lawyers and offer a variety of financial aid.
Share
Mandatory Notice Periods for Rent Increases in Dubai: Tenant and Landlord Rights
16-12-2024
