Even being a part of the statistically advanced country, a bank cheque is still the most used and reliable mode of payment even though in comparison to cash or wire transfer, funds payable through cheque is not available instantly. Thus, the chances of a cheque not being cleared by the bank due to either insufficient funds or false signature are critically high. Most countries consider cheque bounce as a criminal act and empower the beneficiary to register a criminal complaint against the issuer, yet the intention while issuing the cheque holds significant importance when putting forth as a defence by the issuer as also confirmed by Best Criminal Lawyers of Dubai.
The transactions through cheques within UAE are governed by Federal Law Number 18 of 1993 concerning the Commercial Transaction Law whereas, its punishment is governed by Federal Law Number 3 of 1987, UAE Penal Code and subsequent laws promulgated by the respective Emirate. The intention while issuing the cheque has been discussed by courts on various occasions and has been offered notable consideration in accused’s defence. This is a consequence of Article 401 of the UAE Penal code which reads as follows:
“Anyone who issues a cheque in Bad Faith without sufficient funds or who upon issuing the cheque withdraws all or part of funds from the account, so that the remaining balance would be insufficient to cover the cheque amount or deliberately writes the cheque in such way as to make it non-payable, shall be sentenced to detention or to a fine.”