Dismissal of Criminal Case Related to a Dishonoured Cheque that was Honoured without Actual Payment
Type
E-journal
Date
8 Apr 2016
Jurisdiction
United Arab Emirates
Taxonomy
Payment & Payment Systems, Financial & Business Offences
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
Al Tamimi and Company represented a client in a criminal case related to a bounced cheque and succeeded to obtain judgment in favour of the client.
Pursuant to Article 401 of the UAE Penal Code, the practice of the criminal courts has been to dismiss a criminal case related to a dishonoured cheque on the basis only of withdrawal of the complaint by the complainant or payment of the value of the cheque.
Article 401 of the UAE Penal Code states
“Shall be sentenced to detention or to a fine, whoever draws in bad faith a cheque without sufficient funds or who, after giving the cheque withdraws all or part of the funds, so that the remaining balance is insufficient to cover the amount of the cheque, or gives an order to the drawee to stop payment, or deliberately writes or signs the cheque in such a manner as to make it unpayable.