Learn all about dealing with bounce cheque cases in Sharjah in this article.
In today’s financial landscape, cheques remain a prevalent method of payment. However, the unfortunate reality is that not all cheques are guaranteed funds. When a cheque is dishonored due to insufficient balance or other reasons, it leads to a legal issue known as a “cheque bounce case.” But, how do you check cheque bounce case in Sharjah?
Understanding the legal aspects of cheque bounce cases in Sharjah is crucial, as they can have significant consequences for both parties involved. In this comprehensive guide, we’ll walk you through the process to check cheque bounce case in Sharjah. And, provide insights into the associated legalities.
What Is Meant by Cheque Bounce?
Cheque bounce cases, or dishonored or bounced cheques, occur when a cheque is presented for payment, but the bank refuses to honor it due to insufficient funds or other issues. In Sharjah, like the rest of the UAE, bounced cheques in UAE cases are taken seriously, and there are strict penalties in place to deter such practices.
What Constitutes a Bounced Cheque?
A bounced cheque is a cheque that is not honored by the bank upon presentation and can further lead to a penalty for cheque bounce.
This typically happens when the account holder does not have enough funds in their account to cover the cheque amount. It can also occur due to issues like:
- Closed account.
- Mismatched signature.
- Post-dated cheque.
What Are the Penalties for Cheque Bounce in Sharjah
The penalty for cheque bounce in Sharjah can be severe. Offenders may face fines, imprisonment, or both. There have been recent amendments to the law regarding cheque bounce in the UAE. The regulations pertaining to cheque bounce are outlined in Federal Law No. 18 of 1993, which deals with commercial transactions (Commercial Transactions Law).
These alterations to the Commercial Transactions Law have been introduced through the implementation of Federal Decree-Law No. 14 of 2020, which has amended and adjusted the Commercial Transactions Law. These modifications are substantial and include, among other things, a reduction in the scope of criminal liability in cases of cheque bounce. Additionally, there have been changes made to the penalties for violations.
The severity of the penalty depends on the amount mentioned in the bounced cheque.
Procedure for Cheque Bounce Cases
Handling a bounced cheque in UAE involves a specific legal procedure. Here’s a step-by-step guide:
Notice of Dishonor
When a cheque bounces, the holder must issue a “Notice of Dishonor” to the drawer (the person who wrote the cheque) within 30 days of receiving notice from the bank.
Filing a Complaint
If the drawer does not settle the matter within 15 days of receiving the notice, the holder can file a formal complaint with the police or public prosecutor.
How to Check the Status of a Bounced Cheque Case in Sharjah
To check cheque bounce case in Sharjah, you can utilize the online services provided by the Sharjah Judicial Department. By visiting their official website and entering the required details, you can access information regarding your case.
Using the AECB Portal for Verification
The UAE has established the Al Etihad Credit Bureau (AECB), which maintains a list of individuals involved in bounced cheque cases. Checking this list can help you verify the status of a cheque bounce case and understand if you are listed.
Steps to Resolve a Bounced Cheque Case Due to Insufficient Balance
After your check cheque bounce case in Sharjah, resolving a bounced cheque case often involves settling the outstanding amount with the holder. You can follow these steps:
- Contact the holder and negotiate a settlement.
- Pay the amount owed.
- Ensure the holder withdraws the case against you.
- Avoiding Legal Repercussions and Jail Terms.
- By resolving the matter amicably, you can avoid legal actions, such as fines and imprisonment. which can be imposed in case of non-resolution.
Implications of a Travel Ban for a Bounced Cheque
A bounced cheque in UAE can lead to a travel ban. This means you may be prevented from leaving or entering the country until the matter is resolved.
How to Remove a Bounced Cheque from the AECB List
To remove your name from the AECB list, you must ensure that all related cases have been resolved, and the necessary paperwork has been filed. Once this is done, you can request to have your name removed from the list.
Wrapping Up
In conclusion, understanding how to check a cheque bounce case in Sharjah is essential for anyone involved in such a situation. Timely resolution and compliance with legal procedures for a bounced cheque in UAE can help avoid a severe penalty for cheque bounce.
As the UAE continues to implement new rules and systems to address bounced cheques, staying informed is the key to safeguarding your financial interests. Remember, the penalty for cheque bounce can be severe, but with the right knowledge and actions, you can navigate this legal process of a bounced cheque in UAE effectively.
