Dubai Courts have begun to implement new law that decriminalizes bounced cheque cases.
The courts started implementing new amendments to the Commercial Transactions Law that decriminalize issuing cheques without sufficient funds.
Under Federal Law No. 14 of 2020, which was updated in October 2020, check beneficiaries or bearers don’t need to file criminal or civil cases for non-payment of the check. They can directly approach the court’s execution judge to order payment of the check’s value or what is remaining of it.
The banks are also obliged to make partial payments by releasing any available funds in the bank account for the benefit of the check bearer unless the beneficiary disagrees.
However, in cases where people deliberately issue checks to con others out of money, the action will still be criminalized.
Judge Khalid Almansouri, Chief Judge of Enforcement Court at Dubai Courts, said the criminalization has been limited to cases of fraud in issuing a check “or in cases where there were sufficient funds but were withdrawn by the issuer.”
He said criminalization was replaced with faster and easier procedures “that give beneficiaries their rights and protect them”.
This is in line with the initiatives and strategic plans of Dubai to support a sustainable economy and achieve “faster more accurate justice that represent the vision of Dubai Courts of becoming distinct courts globally.”
