Debt Settlement and Travel Ban Clearance

Q: I departed from Dubai two years ago after cancelling my job visa owing to loss of employment. However, at that time I had unpaid debts in the country. Now I wish to return to the UAE and have reached a settlement with the creditor banks. How can I ensure that I have no travel ban and police cases against me as a bounced cheque is considered a criminal offence. Kindly advise as I want to avoid the risk of getting arrested upon my arrival.

A: In furtherance of your queries, you may elect to appoint a lawyer in the UAE who will, on your behalf make necessary enquiries as to whether any police complaints/criminal cases are registered against you. In the event any complaints/criminal cases are registered against you, your lawyer could obtain a release, pursuant to a settlement with the creditor banks, arrange the removal of your name as a wanted person.

Once you have paid the creditor banks and all complaints/criminal cases against you are closed, you could travel to the UAE without any risk (KT).

Frequently Asked Questions
Cheque is proof of money lent

Q: I lent Dh200,000 to one of my friends in November 2008 and got an undated cheque against it from him. After promising me that he would repay the amount for the past two years, he has now refused to do so. Can I initiate a criminal case against him?

A: To initiate a criminal case against the debtor, you have to produce a bounced cheque to the police. Hence, you have to deposit this cheque to your account and if it returns bounced, then you are entitled to report this to the police. Alternatively, you can proceed with a civil suit directly based on the cheque as it is a proof of debt.

Stale cheque
Q: What is the liability of the drawer of a stale cheque in Dubai? Is the drawer obliged to write another cheque in exchange for a stale cheque?

A: Generally speaking, a cheque is given for payment of any underlying transaction. Hence, it is the duty of the drawer to pay the amount either by giving another cheque or by paying in cash.

Furthermore, a stale cheque cannot be deposited in the bank. However, the same stale cheque is still valid for establishing a civil right of claiming the amount of the cheque from the same person.

Thus, you got a right to file a civil case within 15 years against the drawer for the amount of the cheque as per Article 473 UAE Civil Code.
——————————————————————————————————–

Conviction: Criminal court or civil court

The criminal court and civil court function separately. When the reciever of a cheque (which bounced) files a complaint in the police station against the issuer, the case is forwarded to the public prosecution and then to the criminal court. The criminal court may convict the issuer (based on evidence provided by the complainant) and give him two options – pay the money or go to jail.
However, in case of failure to get cheque amount despite imprisonment, the complainant should present his case to the civil court to claim the money along with documents and evidence to prove it. The civil court could then either demand the issuer to pay or face jail term.

Completed jail term; what next?

If a certain person was convicted for a bounced cheque case and has served jail term, he or she stands released after the period. However, if the original complainant files the case again in the civil court, he or she will have to pay the unpaid amount or go back to jail. In case there is no pending or second case once the jail term is completed, the person is free to leave the country after collecting his impounded passport.

Who signed the cheque?

In companies or partnership firms, not all partners or stakeholders can be held liable in the event of a cheque being issued without sufficient funds to pay it off. The criminal liability shall be borne by the individual who signed the cheque – whether it be a manager or another partner. Other people’s private funds have no bearing on the value of the cheque. Its value shall be realised only through the assets of the company.

However, if the losses or lack of funds, which resulted in the cheque bouncing of the company, are proven to be a result of any kind of fraud by the owners or partners, the case may take a different direction.

Owners or managers abscond

If it is proved that the company, which the complainant has dealt with, does not have enough funds to settle the cheque’s value, he or she can file a criminal case against the manager who signed the cheque, even if he or she has left the country. After a judgement is issued, the questioner may request the concerned authority to include the manager’s name in Interpol’s wanted list. (GN)