Middle Man is Liable

January 14, 2020

The UAE Law says that Holder of the Cheque, has an option/right to file a criminal case against Drawer if the cheque gets bounced. Article 401 of the Federal Law No.3 of 1987, states that Fine or Sentence can be imposed by the Law/Court to people who give the Cheque which gets bounced, obviously in a bad intention, when there is no sufficient amount in BANK. Same punishment/penalty is available or imposed on the person who is Middle Man and endorses the Cheque. Both 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 the Criminal as well as Civil Case against the signatory. Credit goes to Law which protects the businesses and people in an effective manner.

[ Visit Our Law Firm ]