CONTEXT
Under UAE law after amendments in 2022, a bounced cheque due to insufficient funds no longer automatically triggers criminal liability in standard commercial and lease situations. However, serious civil consequences remain — including court enforcement, asset attachment, and travel bans. Criminal liability is preserved where there is evidence of deliberate intent to avoid payment.
LEGAL BASIS
Federal Decree-Law No. 50 of 2022 (Commercial Transactions Law), especially Article 675
Federal Supreme Court — Criminal Appeal No. 1705 of 2024
KEY RULE: PARTIAL PAYMENT OBLIGATION
If the account contains insufficient funds to cover the full cheque amount, the bank is obliged to make partial payment up to the available balance and issue a certificate confirming the partial amount paid.
Effect of partial payment certificate: This certificate carries the force of an executory instrument, allowing the beneficiary to initiate direct enforcement proceedings before the execution court — without full substantive litigation of the underlying debt.
CIVIL LIABILITY OF THE DRAWER
Insufficient fun...