How to Clear a Cheque Bounce Case in Dubai​

Introduction

Paying rent, loan installments, or even entering into a business deal in Dubai all require a cheque to secure payment. But what happens when a cheque bounces?

If you have issued a cheque and it bounces, it can lead to a criminal charge in some cases. If you have been given a cheque and it bounces, recovering the debt can get complicated, unless you know the cheque bounce process in Dubai.

This guide covers everything about cheque bounce cases in Dubai, including fines, penalties, and the legal action filing process.

What is Cheque Bounce Under Dubai Law?

While a cheque remains the most preferred method of personal and business obligation payments, sometimes cheques are dishonored. A cheque is bounced when the person it is issued to presents it at the bank, and it is refused upon presentation.

A cheque can bounce in Dubai for various reasons, some of which are not even the direct fault of the person issuing the cheque (drawer). Reasons for Cheque Bounce in Dubai include:

• Insufficient Funds
• Stop-payment instructions
• Mismatch of signatures on the cheque
• Damaged or tampered cheque
• Expired cheque (submitted after six months from the date of issuance)
• Cheque issued on a closed bank account

What Legal Action Can Be Taken for Cheque Bounce in Dubai?

Under Federal Decree Law No. 50 of 2022 (Commercial Transactions Law), cheque bounce cases typically have a remedy of filing a civil lawsuit.

However, according to Article 675, there can also be criminal charges when the drawer:

• Orders or requests that the bank not cash the cheque (unless an order is given for an exceptional reason)
• Closes the account, withdraws all the balance in it, or knows that it was closed before issuing the cheque
• Intentionally writes or signs a cheque in a way that prevents it from being cashed (forgery or fraud)

Committing any of the above offences carries a prison term between six months and two years.

If the cheque has bounced due to insufficient funds, you can apply under Article 648 to request that the bank pay you the available funds in the account and get a partial recovery, while you wait for the entire amount.

What is the Penalty for Cheque Bounce in Dubai?

The penalty and fine for cheque bounce in Dubai depend on the value of the cheque. In some cases, there can also be travel bans and asset freeze orders.

Here's a list of cheque bounce cases in Dubai penalties:

• Cheque Amount under AED 50,000: AED 2,000 fine
• Between AED 50,000 and AED 100,000: AED 5,000 fine
• Between AED 100,000 and AED 200,000: AED 10,000 fine
• Forgery or Counterfeiting: At least one year in jail and fines between AED 20,000 and AED 100,000

If you are facing a cheque bounce case, you should immediately contact your bank, as well as consult a cheque bounce lawyer in Dubai, to avoid legal risks.

With 25-plus full-time lawyers and over 570 resolved cases, Kayrouz & Associates can help avoid high penalties and jail terms. Contact our expert legal team in Dubai and Abu Dhabi to discuss your case.

How to File Cheque Bounce Case in Dubai?

Once the cheque returns unpaid from the bank, you can file a cheque bounce case in Dubai to recover your debt. Here's how you can do it:

1. Check the Reason for Dishonour: The bank will send you the unpaid cheque along with the reason for denial (Bank Notice for Bounced Cheque). Depending on the same, you can either file a civil or criminal case.

2. Review the Contract: If the cheque was issued in furtherance of an agreement or as a security, you should attach a copy of it.

3. Send a Legal Notice: You need to send a formal notice informing the drawer that the cheque has bounced, and instruct them to pay the amount within 15 days. You should also keep a copy of the notice delivery record with you.

4. File with the Execution Court: You can directly file the cheque bounce case with the Dubai mainland execution courts to get immediate relief. The court will give an executory stamp, and you can directly enforce the cheque.

5. Bounced Cheque Report: The Dubai Police also offers a free-of-cost cheque bounce report to file a complaint for cheque bounce in Dubai to either mutually settle the dispute or refer the case to the Dubai courts. This can be used by nationals, as well as tourists and residents, as an alternate remedy.

After filing the case, you can check its status on the Dubai Court online portal and keep a track.

Need help filing a cheque bounce case? Kayrouz & Associates' Debt Recovery and Enforcement practice helps in drafting legal notices and settlement proposals, filing debt recovery claims, and enforcing court judgments.

What is the Time Limit for Cheque Bounce Case in Dubai?

• Present the Cheque: Within six months of the date of issuance
• Send a Legal Notice to Drawer: Within thirty days of receiving the Dubai cheque bounce notice from the bank
• File a Case: You can file a civil case within two years from the expiry of the deadline for presenting the cheque

Under the new Dubai cheque bounce rule, you can file the case with the execution court division, and if there is no objection from the drawer, you can get your payment within 15 days.

What is the Cost of Filing a Cheque Bounce Case in Dubai in 2025?

If you file a complaint with the Dubai Police and get a cheque bounce report, there is no cost or fee.

If you file a case with the Dubai courts, you would need to prepare documents, send notice to the drawer, and get a certificate of Dubai bounced cheque from the bank. You would also have to pay 5% of the bounced cheque amount and AED 150 as the application fee once the bounced cheque application is ready for execution.

How Kayrouz & Associates Can Help You?

When a cheque is bounced, there can be heavy penalties on the drawer (sometimes even twice the cheque amount). Once a person is convicted of a cheque bounce case in Dubai, they may be imprisoned or deported (for visitors and expats) as well. That's why it's important to consult expert attorneys in Dubai.

Kayrouz & Associates helps in securing Post-conviction Relief and Extradition to challenge unjust outcomes or resist cross-border enforcement actions.

We also have a Debt recovery and enforcement team to assist individuals and businesses in recovering debts efficiently and lawfully by negotiating settlements, filing cases, and securing asset freezing and travel bans to preserve the debtor's assets and leverage recovery.

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