It is a crime to issue a check without an account balance – News
The drawee may pay the check even after the expiry of the time limit fixed for its presentation.
I had loaned 10,000 Dh to a friend of mine. I took two post-dated checks from him as collateral. The dates he had mentioned for his return have now passed. When I asked him, he told me different dates. How do I go about collecting the money?
It should be noted that matters relating to checks and promissory notes are dealt with in accordance with the provisions of Chapter III of Federal Law No. 18 of 1993 on the Issuance of the Law on Commercial Transactions. In view of the provisions of the law on commercial transactions, it is specified that a check can be cashed within six months from its date of issue. We cite Section 618 of the Commercial Transactions Act for your reference in this regard. It is presumed that you lent the money out of court, with no interest payable.
“(1) A check drawn inside or outside the country and which becomes payable in that country must be presented for payment within six months.
(2) The period mentioned in the previous paragraph runs from the date indicated on the check as the date of issue.
(3) Presentation of the check to one of the banks, or reservation by this bank, of its amount by telephone or cable, with the bank on which it is drawn, as well as presentation of the check at one of the chambers of compensation recognized by law, is considered presented for payment.
You didn’t mention if you signed any agreements with your friend to whom you had loaned 10,000 Dh, nor did you mention if the checks are past their six-month payment date.
In general legal language, it may be advised that if the checks are not past their due date, you may choose to present the checks to the banks concerned. In case of refusal of this one, you can initiate appropriate legal proceedings against the natural person requesting the reimbursement of the money which has been loaned to him.
Even if the check payment deadline is exceeded, you can still be paid by the affected drawee / bank. This is in accordance with the provisions of Article 620 of the Law on Commercial Transactions which reads as follows:
â(1) The drawee may pay the check even after the expiration of the time limit fixed for its presentation.
(2) The opposition to the payment of the check is not admissible, except in the event of loss or insolvency of its holder.
(3) The bank is bound to honor the check, despite the opposition of the drawer, in cases other than the two cases provided for in the previous paragraph, and the court does not order any opposition to payment even in the event action for the main right. “
You may note that refusing to honor checks is also a criminal offense. In accordance with the same, you can file a complaint at the relevant police station. We cite Section 401 of United Arab Emirates Penal Code Issuance Federal Law No. 3 of 1987 as a reference, which states:
“A deduction or a fine is imposed on anyone who, in bad faith, delivers a draft (check) without sufficient balance and can be drawn or who, after delivery of a check, withdraws all or part of the balance, making the balance insufficient for settling the check, or directing a drawee not to cash a check or making or signing the check in a manner that prevents it from being cashed.
The same penalty will be applied to anyone who endorses a check in favor of another or gives him a bearer draft, knowing that there is not sufficient balance to honor the check or that it is not drawable.
In addition to the above, you also reserve the right to bring a civil action against the person concerned for the recovery of the sums owed to you under the checks. And in this regard, you may note the statute of limitations for filing the lawsuits as such. We quote Section 638 of the Commercial Transactions Act for your reference.
“In case of refusal and lack of legal excuse, the following will not be heard:
(1) The action for recourse of the bearer of the check against the drawee, the endorsers and other bondholders in payment of the check after the expiration of a period of two years from the period fixed for its presentation.
(2) The recourse of the debtors against each other after the expiration of one year from the day the debtor settled the check or from the day of a claim he brought in regulation.
(3) The action brought by the holder against the drawee after the expiration of a period of three years from the expiration of the period fixed for the presentation of the check.
(4) The aforementioned time limits do not apply to actions against the drawer who has not provided the consideration for the settlement or if it has been provided and withdrawn in whole or in part, as well as actions against all bondholders who have earned illegal income.
You may also consider having a lawyer assist you who can help and further advise you in this regard.
KNOW THE LAW
The opposition to the payment of the check is not admissible, except in the event of loss or insolvency of its holder. The bank is obligated to honor the check, despite the opposition of the drawer.
Uncredited card payment
I made two transactions online through my bank’s website on December 9, 2016 and received email confirmations that my transactions were successful. These were credit card payments for my other bank cards. But a week later, when I got calls from these banks, I learned that they hadn’t received the payments I made online. For this reason, they imposed late payment fees on me (around 450 Dh).
Then I contacted my bank’s customer service and based on their advice, sent an email clearly stating all of these points to their help desk on December 19th. On December 25, I received an email from them stating that my complaint was highlighted for the relevant department. Since I received no response afterwards, I also sent them a reminder on December 31st.
But to this day, there is no more response from my bank. Now please let me know where I should raise this complaint.
We believe that you can continue to follow up on your complaint that you sent to your bank’s help-desk on December 19. Consequently, if you do not receive further information from the bank concerned, it may assume that your complaint has been duly taken into account and that the late payment penalties are now waived. If not, then you must provide a statement of your bank account from which you paid the funds to demonstrate that your account with the remitting bank has been debited.
However, in the event that the bank concerned insists on paying the penalties, you can try to prevail by stating that the imposition of the penalties was unjustified because you had received timely notifications on your email of the success. transactions.
However, if the affected bank continues to impose the fine, you can contact the UAE Central Bank, which is the competent authority in the UAE to hear complaints about banking services.
KNOW THE LAW
A customer can contact the Central Bank of the United Arab Emirates, which is the competent authority in the United Arab Emirates to hear complaints about banking services, if there is a complaint about their banks.
Ashish Mehta is the Founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practice law in Dubai, UK, Singapore and India. All the contact details of his company on: www.amalawyers.com. Readers can email their questions to: [email protected] or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.