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UAE: Can I accept a job in a neighbouring Gulf country if I have a cheque bounce case in Emirates?

Here is when a travel ban can be imposed in such cases

Published: Sun 22 Oct 2023, 9:40 AM

Updated: Sun 22 Oct 2023, 10:49 PM

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Question: A cheque I issued bounced. I have received a good job offer from a GCC country, which will help me pay off the amount. How should I go about this? Can I get the case dropped?

Answer: Pursuant to your queries, it is assumed that you had issued a cheque to an individual and due to insufficient funds, the said cheque has been dishonoured by your bank. It is also assumed that the individual to whom you had issued the cheque has filed an execution case on you. Therefore, the provisions of Federal Decree Law No. 42 of 2022 on the Promulgation of the Civil Procedures Law, Federal Decree Law No. 50 of 2022 on UAE Commercial Transactions Law and The GCC Convention for the Execution of Judgements, Delegations and Judicial Notifications of 1996 are applicable.

In the UAE, if a cheque issued by an individual (drawer) to another individual or entity (drawee) is dishonoured for insufficient funds in a bank account of a drawer, the drawee is entitled to file an execution case against a drawer claiming the amount of the dishonoured cheque. Based on the execution case filed by a drawee, it may obtain an execution order and may proceed filing an execution proceedings against the drawer as mentioned in Article 667 of UAE Commercial Transactions Law and Chapter 6 (Article 233 to Article 238) of the UAE Civil Procedures Law.

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Once the drawer is notified of the execution proceedings filed against him or her in accordance with Article 233(3) of the UAE Civil Procedures Law, the drawer may propose to the court and/or the executor that he or she intends to pay the amount to the court, in favour of the drawee. This is in accordance with Article 235 of the UAE Civil Procedures Law, which states:

“1. If the debtor proposes to the executor at the time of notification of the writ of execution or in any of the procedures' cases, the payment or delivery of the sum, subject — matter of the execution, in whole or in part, the executor shall record the same in the minutes and request the debtor to deposit the sum proposed at the court's treasury in favour of the execution applicant. Said deposit or delivery shall be carried out on the same day or on the following day at most.

“2. If the thing proposed is part of the debt, the executor shall continue to execute against the remainder.”

Based on the aforementioned provisions of law, you may close the execution case filed against you by paying the execution amount (amount in the dishonoured cheque, court fees and other costs as mentioned by the court). Further, you may also request the court to allow you to pay the execution amount in instalments and if the court and/or the drawee agrees on the same you may pay the execution amount in instalments and close the execution case filed by the individual to whom you have issued the dishonoured cheque.

Furthermore, the court may also impose a travel ban on you if the execution amount is more than Dh10,000 in the event you fail to pay the execution amount to the court upon service of notice. This is in accordance with Article 324 of the UAE Civil Procedures Law.

In addition, if there is no travel ban on you imposed by the court in the UAE, you may travel to another GCC country and be employed there. However, the individual to whom you issued the dishonoured cheque may file an execution proceeding against you in the GCC country where you will be residing based on the execution order issued by a court in the UAE.

This is in accordance with Article 1(a) of the GCC Convention for Execution of Judgements, which states “Each of the GCC countries shall execute the final judgements issued by the courts of any member state in civil, commercial and administrative cases and the personal affairs cases in accordance with the procedures as provided under this agreement, provided that the court that issued the judgement has the jurisdiction in accordance with the international jurisdiction as applicable in the member state where the judgement is required to be executed or has the jurisdiction in accordance with the provisions of this agreement.”

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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