Middle Man is Liable

The UAE Commercial Law says that the Holder of the Cheque has an option/right to file a criminal case against the Drawer if the cheque gets bounced. Article 401 of the Federal Law No.3 of 1987, states that a Fine or Sentence can be imposed by the Law/Court to people who give a Cheque which gets bounced, obviously with bad intention, when there is no sufficient amount in BANK.

The same punishment/penalty is available or imposed on the person who is a Middle Man and endorses the Cheque. Both the drawer and the endorser(if any) can be responsible for this. For Cheque Bounced issue there is a proper Law available in UAE. The person can file a Criminal as well as Civil Case against the signatory. Credit goes to Law which protects businesses and people in an effective manner.

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