Pursuant to the amendments introduced by Federal Decree-Law No. 50 of 2022 (Commercial Transactions Law), the return of a cheque due to insufficient funds in most standard commercial and lease-related situations no longer entails automatic criminal liability. The primary focus has shifted to civil enforcement mechanisms.
Where the account contains a partial amount, the bank is obliged to make partial payment of the cheque within the limits of the available balance and to issue a certificate confirming partial payment. Such certificate acquires the force of an executory instrument, enabling the beneficiary to initiate direct enforcement proceedings before the execution court without full substantive litigation of the underlying debt.
Insufficient funds do not release the drawer from civil liability. The cheque beneficiary is entitled to seek enforcement through the court, petition for attachment of bank accounts and assets, and request the imposition of a travel ban until full settlement of the outs...