Report for Outstanding Bounced Cheque
A person who owes me money under a cheque is delaying my payment, What’s the fate of my rights?
UAE law provides full protection for financial, civil, and commercial rights regarding Bounced Cheque both among individuals and institutions, whether the debt bond is a cheque or any other bond Taking to Civil Direct Execution
If the debt bond is a check, the law allows for issuing a performance order in one day.
bounced checks are no longer criminal offenses as of January 2, 2022
As long as the following three conditions apply to a bounced cheque:
If the debtor documents the debt claims in a signed writing
The debt cannot have any terms or conditions and must match the known value of the bounced cheque.
Once the competent judge issues a performance order and notifies the sentenced debtor, authorities can enforce the seizure of the debtor’s property and funds. Additionally, the order can include a decision to seize assets and block the debtor from traveling until the debtor makes full payment, including legal benefits from the date of the judicial claim.
Origin. The right of the plaintiff to appeal to the court to claim his right before his opponent. Exception. To take the route to a performance order.
The Civil Procedure Act, as amended by Law 30 of 2005, establishes that a plaintiff claiming a right must resort to the court directly, typically through a newspaper notice. An exception is seeking a performance order from the judge of the first-instance court. The judge may refrain from issuing the order if the plaintiff fails to address all requests. The legislature must take this exceptional route for specific claims or if the creditor is under a commercial paper. This allows the creditor to bypass the standard filing process, provided there is a fixed connection between the debt and the claimed right.
The Indivisibility of Performance Orders
Articles 42, 143, and 145 of the Code of Civil Procedure define a clear path for plaintiffs filing claims.
- If a right meets the criteria for a performance order, the plaintiff can file through the ordinary case process.
- However, rights without a performance order option, or those not meeting the criteria, require the ordinary case route.
Performance Orders and Public Order
The law mandates the use of performance orders when the conditions in Article 143 are met. This protects public order. The court itself will dismiss cases where this is not followed.
Performance Order Conditions
A competent judge within their jurisdiction issues a performance order. The Court of Appeal can cancel the order if the objective conditions for issuance weren’t met. In such cases, the court can’t simply reject the request, but must proceed with the case through a new provision.
Articles 143, 144, and 147 highlight that:
- A competent judge with jurisdiction issues the performance order, fulfilling all judicial duties.
- Performance orders have the same appeal powers as regular court judgments (Article 166). If an order doesn’t meet issuance requirements, the Court of Appeal can intervene.
Exclusion from General Rules
The value-of-jurisdiction rule (Article 30) doesn’t apply to performance orders. The legislator excludes performance orders from general case provisions, including procedures and competence rules.
Court Jurisdiction for Performance Orders
The court judge where the debtor resides has jurisdiction to issue performance orders, regardless of the claimed debt amount. This can be a single judge, a presiding judge, or a judge from a three-judge chamber. This aligns with the court of first instance structure.
What is a Judgment?
A judgment is a judge’s official decision, made within their legal authority, to settle a dispute brought before them according to the Civil Procedure Law. This applies to disputes involving bounced cheques and rights.
What is a Petition Order?
A petition order, governed by Part X of the Code of Civil Procedure, is issued by a competent judge or court chamber head. It addresses requests presented in petitions, typically involving a temporary (provisional) procedure.
How Does it Work?
The judge or chamber head issues this order without the presence of opposing parties (in absentia). It doesn’t require any explanation on your petition copy. The order itself reflects the reality of the situation, rather than just the judge’s procedural description.
How to Contest a Petition Order
If you disagree with a petition order in a bounced cheque case, you can generally challenge it by filing a grievance.
- Who to File With: Submit the grievance to the judge or chamber head who issued the order (unless legal exceptions apply).
Appeal Restrictions
- Direct Appeal Not Allowed: You cannot directly appeal the petition order itself.
- Appeal the Judgment: However, you can appeal the final judgment in the case, which may indirectly address the petition order.
Performance Order Exception (Article 147.2):
This is a rare exception to the general rule. If the opposing party misses the grievance deadline due to death, you may be able to directly appeal the performance order (if applicable).
Summary of the rule
Performance command
Mandatory Performance Orders for Bounced Cheques (Article 143)
Dubai Law Requires Performance Orders for Bounced Cheques (Article 143)
Article 143 of Dubai’s amended Civil Procedure Code mandates creditors to file a performance order when faced with bounced cheques. This applies only if the specific conditions for such an order are met. Failing to follow this requirement will result in the court rejecting your claim.
Performance Orders: A Special Exception
Performance orders serve as a clearly defined exception to the general rules governing legal actions. Their use is limited to specific bounced cheque scenarios and cannot be universally applied.
Bounced Cheques: Who Faces Performance Orders in Dubai?
Performance orders in bounced cheque cases can only be directed at two parties:
- The Drawer: This is the person who issued the bounced cheque.
- The Standby Guarantor (if applicable): This refers to any designated individual who guaranteed payment on the cheque.
Important Note: The person who cashed the cheque cannot be targeted with a performance order.
Creditor’s Responsibility: Initiate with Performance Order
Creditors with eligible claims must initiate the process by filing a performance order. If the situation doesn’t qualify for a performance order, the standard case filing procedure applies.
Summary of the rule
Performance order route when conditions are met. From the public order. The result. The court must, on its own motion, serve in violation of the non-acceptance of the case in order to bring it forward in the way prescribed by law.
Rule text
Bounced Cheques and Performance Orders: A Mandatory Requirement
When the conditions for a performance order are fulfilled in a bounced cheque case, public order dictates its use. This means the court has the authority to reject any lawsuit filed without a performance order, on its own initiative.
Summary of the rule
The plaintiff who claims a right before his opponent originally resorted to the arbitrator under an argument deposited by the book’s book, the exception. If the judge in charge of the Trial Chamber so provides, he shall take him to the path of obtaining a performance order. Performance order conditions are not available.
Rule text
Claiming Rights in Bounced Cheque Cases: Standard vs. Performance Orders
Articles 143, 42, and 145 of the Code of Civil Procedure outline the process for claimants pursuing their rights against debtors.
- Standard Case Filing: For most claims against an adversary, a claimant files a lawsuit through the court system, typically with a written petition.
- Performance Order Exception: An exception exists for specific cases involving bounced cheques. Claimants can seek a performance order from the judge in charge of the Trial Chamber.
Bounced Cheques and Performance Orders: Qualifying Conditions
To file a performance order for a bounced cheque, you must meet all these requirements:
- Fixed Debt: The claimed amount must be a fixed and definite sum owed.
- Signed Promissory Note: You need a signed promissory note from the debtor’s city documenting the debt.
- Due and Unconditional Debt: The debt must be currently due and not subject to any conditions or postponements.
- Ensure the Bounced Cheque Amount is Clearly Stated.
Summary of the rule
The debtor may appeal against the performance order issued against it in accordance with the rules, procedures, and dates established for the appeal of sentences. Date of appeal. Starting from the date of the grievance. The appeal against the performance order in terms of its appeal to the general rules. The Court of Appeal annulled the order for the absence of objective conditions for its issue without the defect extending to the same petition or procedure for its submission. It should proceed.
Debtors’ Right to Appeal Performance Orders in Dubai
The court’s decision allows debtors to challenge the issued order against them. This follows the established rules, procedures, and deadlines for appeals. The appeal period begins on the date the order is issued.
Appealing Procedural Errors in Performance Orders
If the Court of Appeal identifies a formal flaw in the performance order, they will determine if this flaw affects the entire order or only specific parts of the proceedings.
Correction Process for Flawed Orders
Appealing Performance Orders with Procedural Errors
If the Court of Appeal cancels a performance order due to a procedural error, they will fix the issue without considering the actual case itself.
