UAE laws introduces several penalties to reduce the scope of writing bad cheques by individuals and companies.
UAE laws introduces several penalties to reduce the scope of writing
bad cheques by individuals and companies.
UAE aims to be a global trade hub, with a fast growing economy.
As a step to further boost the power of cheque and prevent people from writing bad cheques, the amendment gives courts to withdraw the cheque book from a convicted defendant and prevent him or her from obtaining any further cheque books for up to five years and also obliges the banks to pay partial payment of cheque due amount from the total available amount in account, thus relieving the creditor with partial payment.
The amendment ensures that if the defendant does not return the cheque book when asked to his bank, he can be fined from 50,000 AED to 100,000 AED as decided by court. The law also holds banks responsible who do not follow the court order to be fined between 100,000 AED to 200,000 AED.
The law also gives power to the court to publish a brief judgement against the convicted person in 2 local newspapers (English & Arabic), mentioning his name, occupation, residence and make the convicted person pay its publishing costs.
source: Gulfnews
