New rules of registration of cases on returnable checks

New rules of registration of cases on returnable checks

In Cooperation with Dubai Police, The Government of Dubai Legal
Affairs Department Holds Training Workshop on the Working Mechanism for Dealing with Bounced Cheques in Government Claims

04 September 2022
The Government of Dubai Legal Affairs Department, in liaison with the General Department of Human Rights, held a training workshop for a number of cadets of Dubai Police General Headquarters, on the working mechanism for dealing with bounced cheques in the Government Disputes and Claims Directorate of the Legal Affairs Department, in light of the amendment to the Federal Commercial Transactions Law No. (18) of 1993, in Article 635 bis, which was added pursuant to Federal Decree Law No. (14) of 2020. The amendment gives the cheque the force of writ of execution in solely two cases whereby the bearer may resort to the execution judge directly seeking execution on all or the remaining balance of a cheque as a writ of execution, without having to follow the conventional litigation process by seeking the issuance of a petition order against the debtor (drawer), which was a time- consuming process, as the creditor will have to give notice of no less than five days to the debtor demanding payment of a cheque. In the event the five-day notice lapses without the debtor paying the cheque, a petition order will be served on the debtor. Such petition order, however, will not be deemed as a writ of execution until it goes through all grievance and appeal stages as prescribed by law, which causes delay for the beneficiary to cash the cheque and affects the trust in the cheque as a negotiable instrument payable on demand.

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