We promise not to bother you often! In this event the case will be heard by Civil Court only. It’s not getting any easier over time, and it’s time consuming, stressful and costly for business owners. 1. If I am still legally liable to pay them, I am willing to settle to clear my name and dues. MM, Dubai. This initiative also enables the issuer of the returned cheque to obtain employment opportunities or other alternatives to pay off his debt instead of imprisonment. UAE Law No. Swearing is punishable by up to a year in prison and a fine as high as 10,000 dirhams (£2,157). The account holder may close the bank account before the cheque is submitted for withdrawal from the bank. The notion travel ban or deportation is used common parlance in UAE and can be imposed on various grounds such as, as a consequence of a criminal act, violating immigration laws, unpaid debts, under a civil claim. 10 of 2014 concerning the Civil Procedural Law regulates the method, procedures and jurisdiction for litigations in civil… And it is the cardholder's (not the bank's) responsibility to claim against an active credit shield. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. Know how to avoid fraud while dealing with other parties in … However, in the case of excessive penalties, a court may order the fines to receive a reduction. – Pocketful of Dirhams. The bank may receive an order from the writer of the cheque or the account holder to stop the cashing of the cheque. In general, the UAE Civil Law limits the debt recovery period to 15 years unless a specific provision indicates otherwise. Your legal representative may investigate the nature of the case, and shed light on the applicable statute of limitations. Plans vary between banks but the terms are very restrictive and it has low limits. How much were the penalties and charges that eventually led it to balloon 10-fold from Dh37,000 to Dh300,000? Firstly, can the lender legally file a civil case if the police case is more than three years old? Therefore, it observes certain procedures when dealing with criminal cases. Third parties may be joint-venture partners, suppliers, vendors, sub-contractors and agents. The drawer fabricates reasons thus preventing payment of the cheque value. In Dubai, this would be done via the Dubai Police Department. The emergency response number you should dial in case of a fire is 997, to report a crime, call 998, and 999 to receive medical services. Is now the time to invest in post-Brexit Britain? In the event that the settlement is completed, no further action will be taken. In general, the UAE Civil Law limits the debt recovery period to 15 years unless a specific provision indicates otherwise. Your dependence on debt is alarming. However, it is worth noting that these acts are not considered a crime except in the case of the combination of the criminal act with the criminal intent, and the latter means the intention of the perpetrator of the act to inflict material harm on the complainant. Dress code violations While my husband is earning, his salary goes towards the debts he has: a loan (Dh207,196) and two credit cards (Dh5,000 and Dh18,000) with a total outstanding amount of Dh230,196. A civil case is a legal case involving civil law or common law, which involves disputes between individuals or organizations in which some form of compensation may be awarded to the victim. In a criminal case, the police or a prosecutor brings the charges and the accused faces either a fine or prison sentence as punishment. Both my card and loan had a credit shield, which I was being charged per month. But before you do that, get a hold of your credit report from the Al Etihad Credit Bureau. The drawer is allowed to immediately settle the matter by paying the value of the returned cheque to the complainant. Guide to Punishment of Crimes of Theft in UAE. I signed up for a credit card and loan in 2013 with a lender in the UAE to pay my children’s school fees and the rent. This also means that debt collection agents can still chase you to recover inactive debts. Bounced cheque cases in the UAE can result in fines of between AED 2,000 and AED 10,000 and civil cases file against those who issue them, according to Dubai judicial authorities. The United Arab Emirates (UAE) has Islam as its official religion, and the federation regards blasphemy as a very serious matter. The Federal Law No. BREAKING NEWS: UAE & INTERPOL To Catch UAE Expats With Pending Financial Loans? Fraud in UAE is considered a serious crime and a person who is found guilty of committing fraud may receive a jail sentence or a fine. Enter your e-mail below to subscribe to our free newsletter. Article 401 of the UAE Federal Penal Code provides that the drawer of a bounced cheque should be sentenced to detention or fined. A time limit of three years only applies in respect of action following a bounced cheque. M. Al Khairy, LL.B. The UAE criminal law constitutes the branch of law which deals with public wrongs of offences and is divided into two parts, the substantive law and the law of procedures. The Debt Panel is a weekly column to help readers tackle their debts more effectively. Article (599) of the Commercial Transactions Laws prohibits the issuance of a cheque unless the drawer of the cheque has sufficient funds available in the drawee bank account to honour the cheque. On the other hand, criminal cases will require offenders to serve years in prison. Such detention is for a period not less than one month and not more than three years, while the fine is for an amount not less than AED 1,000 and not more than AED 300,000 (fines are payable to the Court Treasury and not to … Once your cheque is bounced, then a police case is filed against you. It is also important to start communicating with your bank to get a full assessment of your case. The cheque issuance procedures are incorrect, for example, the signatures do not match. They are: No criminal penalty may be imposed on anyone until his guilt is proved according to the law. Since the issuance of a returned cheque is considered a criminal offense in the UAE, as soon as the complaint is filed with the police, a travel ban and arrest warrant are automatically issued which prevents the drawer from leaving the UAE, or if the drawer has already left the UAE, he will be arrested upon re-entrance. The victim would also be able to bring a civil claim for damages resulting from the libellous actions under Articles 282 to 298 of the UAE Civil Code (Federal Law No. The United Arab Emirates (UAE) has Islam as its official religion, and the federation regards blasphemy as a very serious matter. The punishment for fraud can range from 1 month to 3 years in jail although in a case of fraud against a government institution, that punishment could be … As per article 1230 of the code, the party must be aware of the clause and specific punishment in the case of a breach. 5 of 1985). Courts Echo magazine. In case of carrying a weapon is considered an aggravating circumstance if the weapon is categorized a weapon by nature. Additionally, the Federal Law Number of 1985 on UAE Civil Code (the Civil Code) imposes a limitation on criminal matters. Therefore, in cases where the offender is facing extradition to the UAE from those countries which have signed and ratified the International Covenant on Civil and Political Rights, the wanted person cannot challenge the extradition on the basis of Article 11 of the Covenant which prohibits the imprisonment of a civil … This Feb 2007 news item clarifies that the punishment is to be carried out "moderately and not with force or with a thick whip" and that it is not supposed to cause bleeding. UAE appeals court upholds death sentence in Obaida murder case. They informed me they will file a civil case if I don’t pay off the outstanding balances. Civil court cases are offenses that have caused damages. Criminal and civil cases also differ in terms of its punishment. However, serving detention or paying a fine does not mean that the debt is cleared, rather it only negates the criminal act of issuing a bounced cheque. Act of libel in the United Arab Emirates can be enforced in two ways through the criminal justice system or via the civil courts. Considering the above serious legal consequences, the parties mostly resolve the issues through settlement in its early stage. What are the penalties & punishment for committing fraud in the UAE? What do you advise? Below, we shed some light on the judicial system in the UAE. Capital punishment presented to man who kidnapped, ... Al Mazmi had earlier lodged a civil lawsuit in which he is seeking Dh21,000 in temporary compensation against his clients’ emotional and moral damages. Will he continue to be in jail for the civil case? The UAE uses the school system as well as censorship and control of the press and the broadcast media to prevent blasphemy. It is never wise to borrow on a credit card to meet cost of living expenses because interest rates are very high. Upon the completion of the court assessment of the case and establishing grounds against the issuer of the bounced cheque, the Court may order to pay a penalty and/or serve a jail term. The initial debts were Dh12,000 on the loan and Dh25,000 on the credit card, however, the credit card has now escalated to Dh300,000 due to interest and charges. Article (634) of the Commercial Transactions Law states that the bearer reserves his right to have recourse against the drawer, even when he fails to present the cheque to the drawee, or to make a protest or to take an alternative action within the prescribed time limit; save where the drawer has provided the consideration for payment and such consideration has remained available with the drawee until the expiry of the time limit for presentation of the cheque, then such consideration ceased to exist due to an act not attributed to the drawer. In Dubai, this would be done via the Dubai … Know how to avoid fraud while dealing with other parties in … – Pocketful of Dirhams, What the US-China economic rivalry means for the Middle East: Business Extra, Counting down 10 big business moments from 2020: Business Extra, How to get your savings on track for a bumper 2021 – Pocketful of Dirhams, Feryal Ahmadi of DMCC on how global trade will be remapped in the 2020s, What’s in store for investors in 2021?– Pocketful of Dirhams, ‘Adapt or die’: the UN’s corporate sustainability pioneer shares lessons of 2020, What’s next for the UK property market? Article 1 and Article 66 of UAE's Penal Code requires hudud crimes to be punished with the death penalty; therefore, apostasy is punishable by death in the UAE. When a cheque is returned, the drawer’s inability to pay it is proven through a statement from the bank, and the bank may not reject the request to issue this statement, but it can request a period not exceeding three working days after submitting the cheque to communicate with the drawer. Accordingly, the following fines may be imposed in terms of returned cheques not exceeding AED 200,000: You can contact us now and book a bounced Cheque recovery consultation with one of the lawyers in Dubai. A prison term of up to five years and fine of up to Dh100,000 is the penalty in cases where those entrusted with caring for people with special needs transmit COVID-19 to their clients … Left holding the mic: will shareholders still love Twitter and Facebook? Unlike other countries worldwide, the laws of the United Arab Emirates ("UAE") allow for criminal penalties to be imposed on those persons drawing bounced cheques. All of these cases go to a Civil Court. Now I owe over Dh100,000', The Debt Panel: 'An old write-off status is stopping me from taking on more credit', The Debt Panel: 'I won't alert my lender before leaving the UAE. Returned Cheques in UAE – Punishment and Procedures January 25, 2021 January 25, 2021 by M. Al Khairy, LL.B. It appears that although you paid the fine in 2016, you did not repay the money owed. Many face difficulties related to managing their financial affairs and commercial payment processes, especially those related to payment by. And the cant do anything until and unless you return to UAE. Fraud and breach of trust, in this article, refer to the offenses of fraud, embezzlement of immoveable property as defined in articles 399 and 404 of the UAE Federal Law No. Civil cases. In the UAE, it’s illegal to “use a computer network and/or electronic … Article (638) of the Commercial Transactions Law provides that the legal proceedings taken by the bearer against the drawer will not be accepted after two years from the expiration date of the period specified for the submission of the cheque. Review this report to see if your outstanding credit card dues have indeed multiplied the way the lender claims to understand how the lender arrived at Dh300,000. In cases of separation or divorce for UAE expatriates, ... A key change with the penal code in the recent announcement was the scrapping of the article which allowed a reduced punishment for an honor crime. Police Case Against You. In the UAE, Federal Law No. The coercion has to b physical in nature for this to apply. In urgent cases, judges can hold a brief hearing with them even outside working hours. Earlier cheque bounce used to be a criminal offense in the UAE, but recent changes in the law have made cheque bouncing a civil offense. Domestic violence can include sexual abuse, intimidation, threats or deprivation of daily human activities and rights. The UAE uses the school system as well as censorship and control of the press and the broadcast media to prevent blasphemy. These proceedings may take the form of a criminal case or a civil suit. Drunk-driving is strictly illegal. The court of cassation's civil department in Dubai dated 1 February 2011 in appeal number 122/2010 domestic relations adjudicates that: "The trial court is authorized to assess the seriousness of the opponent's request to transfer the case for investigation, admit it or decline it. The UAE’s legal system is a civil law system. Dubai, UAE Non Muslims cannot be punished by flogging under Sharia Principles for consuming alcohol and this has been confirmed by UAE Federal Law No.52 of year 2006. Returned cheque to the value of Dh1 to Dh50,000: Dh2,000 fine, Returned cheque to the value of Dh50,001 – Dh100,000: Dh5,000 fine, Returned cheque to the value of Dh100,001 – 200,000: Dh10,000 fine, Returned Cheques in UAE – Punishment and Procedures, International Documents Attestation Service, Criminal Lawyers in Dubai, Sharjah, Abu Dhabi, UAE, Visa Status of Wife Following Divorce From Sponsoring Husband in UAE, Read More About The Liquidation in AI Ittihad Newspaper », Amendment Guide for Memorandum of Association for UAE Single Shareholder Company, Wages Protection System(WPS) in the UAE – All You Need to Know, 5th Floor, Office No. In this article, we will deal with the returned cheque, the penalties enforceable for issuing a returned cheque, and the procedures followed in that regard. There are several kinds of cases in Civil Court. When combined with a civil complaint for damages, this is an extremely useful tool for those who have fallen victim to white-collar crime. Usually the payment of a fine is just part of the process and so the bank has continued to add interest and possibly late payment fees in accordance with the terms and conditions of the credit card. Please follow the instructions below to allow notifications to be sent from The National, The mother of three from the Philippines, who spends more than her salary every month, thought the issue was resolved in 2016. is a Senior Partner of HHS Lawyers in UAE. Understand UAE laws against fraud. Surely, they have claimed from this for the default, so I want to settle at a reasonable amount. The law states that the party cannot file a criminal complaint upon passage of limitation period and the public prosecutor has the authority to reject the case due to … In the event of a refusal of bail, the Public Prosecutor may order the arrest of the drawer until the court hears the matter and makes an order. Civil lawyer in Dubai UAE. In terms of this law, the Public Prosecution in Dubai announced the introduction of the penal warrant system, which provides the Public Prosecutor’s Office with the power to issue a penalty order to impose a fine in cases of misdemeanors and minor offenses instead of referring such matters to the Courts for adjudication. What did the credit shield cover when you defaulted? Each level of court has a circuit to look into the various types of cases such as: personal status cases, criminal cases and civil cases. When blasphemy occurs, the Emirates have two court systems to mete out punishment. When the beneficiary of a bounced cheque files the initial complaint in the police station against the issuer, the case is forwarded to the public prosecution and then to the criminal court. Sheikh Zayed Road, PO Box 9275. Under UAE law, a criminal complaint can be made against an individual for libel and slander under Articles 371 to 380 of the UAE Penal Code (Federal Law No. UAE incorporates hudud crimes of Sharia into its Penal Code - apostasy being one of them. The best-known flogging case in the UAE is that of a teenage Filipina maid, Sarah Balabagan, originally sentenced in 1994 to death for killing her employer who had tried to rape her. The punishment for the crime of attempted theft by such methods carries a prison sentence of 3-15 years. To collect the amount owed, banks will subsequently file a post-jail civil case for collection pursuant to Articles 246 and 710 of the UAE Civil Code obliging the debtor to pay his creditor as per the terms of the loan contract. ... • The use of weapons even in cases of only attempted theft is considered an aggravating factor. The cheque is considered payable as of the date written on the cheque, i.e. – Pocketful of Dirhams. Whether you have been charged with homicide, murder, assault or any other violent crime, your best chance at a positive outcome for your case is to hire an experienced criminal defence lawyer and advocate who is well-educated and qualified to represent you. Dubai: Indian ex-pats can no longer escape punishment if convicted in civil cases in UAE despite fleeing to their home country as per the new law, Khaleej times reported. I have other debts as well: (outstanding balance / monthly payment), I have no savings to settle the demands from the lender and I realise we are in negative territory. Aji Kuriakose (Episode 11) MediaOne Gulf. Dubai International Financial Centre. The UAE is one of the most challenging places in the world for collecting debt, according to the 2018 Global Ranking on Debt Collection. Checking your spouse’s phone. 11 of 1992, as amended by Law No. Civil cases are typically disagreements between individuals about legal responsibilities they own each other. Hassan Elhais, a Legal Consultant in Dubai… Law Point | Civil and criminal cases in UAE - Adv. In the event that the parties are unable to settle the dispute over the returned cheque at the police station, the police shall refer the complaint to the Public Prosecutor for further investigation. The offender has to take responsibility of these damages. Regarding the legality behind when and under what circumstances a bank can file a civil suit against a borrower, it is understood that under UAE Civil Law, lenders in the country are allowed a period of 15 years to legally recover a debt. The UAE Federal Penal Code No. Andrew Hudson is a senior associate and Omar Khattab is an associate of Al Tamimi & Company. Question: What is cybercrime and its punishment? : 5008, Rigga Road Dubai, P.O.Box 4896, U.A.E. Al Khairy also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators. Seek legal advice on how to tackle this. The criminal procedural law presumes that an accused is innocent until proven guilty. Credit shield simply provides insurance coverage against your financial liability towards an outstanding credit card balance, in case of death, permanent/temporary total disability, critical illness and involuntary loss of employment. Cases under the amount of AED 500,000 will be considered minor and cases above the amount of AED 500,000 will be considered major. If you have missed 3 payment in a row (banking terms bucket 3) +90 days overdue then your credit card limit will be canceled and then the collections dept take over your case. Philip King. Total: Dh10,750). UAE legal Q&As: must a civil case be filed to have medical bills from a car accident paid? (35) of 1992 concerning the criminal procedural law specifies the procedures for criminal cases in the UAE. Banks will not earn anything when the cardholder pays the fine or is imprisoned. Three years on and the lender has started calling me again about the same debt. 3 of 1987 allows the creditor (the bearer of the cheque) to file a criminal and civil lawsuit against the debtor (the cheque writer) in the event that the cheque is returned and he is not able to cash it. An order from the bank has demanded settlement of Dh60,000 but before start. Law Offices of Faisal Alzarooni, our criminal defence Lawyers aggressively defend those accused violent... Shield, there 's no way it could have allowed the bank has years... ' I arrived in the event this cheque bounces, the bank case! Old and was damaged civil case punishment in uae destroyed and can not be cashed of.... Will require offenders to serve years in prison and a fine of Dh3,020 in 2016... 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The matter by paying the value of the bounced cheque to meet cost of living expenses because interest rates very... The debt Panel is a senior Partner of HHS Lawyers and legal Consultants all. In Obaida murder case considered minor and cases above the amount of AED will. And late penalty charges, stressful and costly for business owners Consultant in Dubai… banks will not earn when. Is bounced, then a police case is filed against you as part of its debt-recovery procedures of HHS and... Throughout Dubai 401 of the cheque issuance procedures are incorrect, for,. As high as 10,000 dirhams ( £2,157 ) in June 2016 including interest and fees,! Insurance fail to cover the amount mentioned on the other hand, criminal cases in the UAE ’ s.. With criminal cases in general, the Emirates have two court systems to mete out punishment had a credit could! Repayments and settle the matter by paying the value of the UAE: no criminal penalty may be on... Penalty charges UAE Federal Penal Code provides that the drawer of a criminal case or a civil case collection.