Such detention is for a period not less than one month and not more than three years, while the fine is for an amount not less than AED 1,000 and not more than AED 300,000 (fines are payable to the Court Treasury and not to … But before you do that, get a hold of your credit report from the Al Etihad Credit Bureau. A prison term of up to five years and fine of up to Dh100,000 is the penalty in cases where those entrusted with caring for people with special needs transmit COVID-19 to their clients … This page provides information about the various aspects of civil cases. A: If a judgment is passed in a civil case and an execution case is extended against him, the period of imprisonment will exceed 36 months… The punishment for the crime of attempted theft by such methods carries a prison sentence of 3-15 years. These proceedings may take the form of a criminal case or a civil suit. If this is the case, the bank has 15 years to chase unrecovered debts. These proceedings may take the form of a criminal case or a civil suit. Sheikh Zayed Road, PO Box 9275. If the total figure owed is Dh300,000 (including interest and fees), a settlement figure of Dh60,000 seems reasonable. It covers filing a lawsuit, mediation, appointment of attorneys/lawyers, appearing before court, ending a civil action, appealing against a judgement and more. Fraud and breach of trust, in this article, refer to the offenses of fraud, embezzlement of immoveable property as defined in articles 399 and 404 of the UAE Federal Law No. Checking your spouse’s phone. In the UAE, it’s illegal to “use a computer network and/or electronic … The public prosecutor is an extended arm of UAE judicial system, involved in initiating a criminal case and acting upon it either by accepting or rejecting the case prima facie. This can cover a housing case such as for eviction or foreclosure, a family case such as divorce or custody, consumer problems such as debt or bankruptcy, or when someone sues for money because of damage to property or personal harm. The best-known flogging case in the UAE is that of a teenage Filipina maid, Sarah Balabagan, originally sentenced in 1994 to death for killing her employer who had tried to rape her. Cases under the amount of AED 500,000 will be considered minor and cases above the amount of AED 500,000 will be considered major. Article (640) of the Commercial Transactions Law provides that in the event that a lawsuit is actually filed, the prescription period is calculated only from the date of the last action taken. Additionally, the Federal Law Number of 1985 on UAE Civil Code (the Civil Code) imposes a limitation on criminal matters. The UAE criminal law constitutes the branch of law which deals with public wrongs of offences and is divided into two parts, the substantive law and the law of procedures. Domestic violence can include sexual abuse, intimidation, threats or deprivation of daily human activities and rights. The victim would also be able to bring a civil claim for damages resulting from the libellous actions under Articles 282 to 298 of the UAE Civil Code (Federal Law No. It would also be helpful to have a prudent financial approach by working out a strict budget that cuts down unnecessary expenses, and allocates some of your earnings towards settling your outstanding borrowing. In addition, you may also propose a sustainable repayment plan that will allow you to comfortably settle the remaining amount. If a license was not obtained, the punishment will be 1–6 months detention and/or a fine not exceeding 2000 Dirhams (approximately 544 US Dollars). Unlike other countries worldwide, the laws of the United Arab Emirates ("UAE") allow for criminal penalties to be imposed on those persons drawing bounced cheques. MM, Dubai. 1 of 2017 for Criminal Orders has recently introduced a new mechanism for disposing of criminal complaints. Non Muslims cannot be punished by flogging under Sharia Principles for consuming alcohol and this has been confirmed by UAE Federal Law No.52 of year 2006. Philip King. Credit shield is an insurance plan offered by some banks and is supposed to cover debt repayments in specific circumstances, such as death, permanent disability and loss of employment. The drawer is allowed to immediately settle the matter by paying the value of the returned cheque to the complainant. Swearing in public is completely prohibited in the UAE, with the use of the F-word being a crime, as it “disgraces the honour or the modesty” of a person, according to Article 373 of the UAE Penal Code. Three years on and the lender has started calling me again about the same debt. The initial debts were Dh12,000 on the loan and Dh25,000 on the credit card, however, the credit card has now escalated to Dh300,000 due to interest and charges. Review this report to see if your outstanding credit card dues have indeed multiplied the way the lender claims to understand how the lender arrived at Dh300,000. 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Likewise, the cheque holder is not obligated to solve the problem with the drawer through direct communication and has the right to initiate legal proceedings immediately. Criminal Case Proceedings Step 1: Filing of a complaint at the police department The bearer of the returned cheque can file a complaint with the relevant police department. Al Khairy also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators. In addition, the limitation period does not apply if the debt is settled or when a separate procedure is taken that leads to the renewal of the debt. In the event of a refusal of bail, the Public Prosecutor may order the arrest of the drawer until the court hears the matter and makes an order. It appears that although you paid the fine in 2016, you did not repay the money owed. 11 of 1992, as amended by Law No. In the event that the settlement is completed, no further action will be taken. Andrew Hudson is a senior associate and Omar Khattab is an associate of Al Tamimi & Company. Dubai, UAE While my husband is earning, his salary goes towards the debts he has: a loan (Dh207,196) and two credit cards (Dh5,000 and Dh18,000) with a total outstanding amount of Dh230,196. The Court may decide to release the drawer on bail or on another person’s guarantee. The creditor will also be entitled to request a statement from the drawee bank to present as evidence in any future legal action taken against the drawer. © 2021  HHS Lawyers and Legal Consultants, All rights reserved. Upon the completion of the court assessment of the case and establishing grounds against the issuer of the bounced cheque, the Court may order to pay a penalty and/or serve a jail term. However, in the case of excessive penalties, a court may order the fines to receive a reduction. Bounced cheque cases in the UAE can result in fines of between AED 2,000 and AED 10,000 and civil cases file against those who issue them, according to Dubai judicial authorities. Plans vary between banks but the terms are very restrictive and it has low limits. Will he continue to be in jail for the civil case? The UAE is another civil law jurisdiction and it holds much the same position as the French. As per article 1230 of the code, the party must be aware of the clause and specific punishment in the case of a breach. In general, the UAE Civil Law limits the debt recovery period to 15 years unless a specific provision indicates otherwise. United Arab Emirates September 14 2016 There are some common misconceptions that expatriates have about UAE family laws. Therefore, in cases where the offender is facing extradition to the UAE from those countries which have signed and ratified the International Covenant on Civil and Political Rights, the wanted person cannot challenge the extradition on the basis of Article 11 of the Covenant which prohibits the imprisonment of a civil … They informed me they will file a civil case if I don’t pay off the outstanding balances. Courts Echo magazine. The United Arab Emirates (UAE) has Islam as its official religion, and the federation regards blasphemy as a very serious matter. Many face difficulties related to managing their financial affairs and commercial payment processes, especially those related to payment by. Hassan Elhais, a Legal Consultant in Dubai… In the UAE, Federal Law No. When blasphemy occurs, the Emirates have two court systems to mete out punishment. Left holding the mic: will shareholders still love Twitter and Facebook? (35) of 1992 concerning the criminal procedural law specifies the procedures for criminal cases in the UAE. As it is now more than three years, do they still have a case? M. Al Khairy, LL.B. In urgent cases, judges can hold a brief hearing with them even outside working hours. The account holder may close the bank account before the cheque is submitted for withdrawal from the bank. The UAE’s legal system is a civil law system. I have other debts as well: (outstanding balance / monthly payment), I have no savings to settle the demands from the lender and I realise we are in negative territory. A criminal case bears a penalty of either a jail term or an imposed fine. The Dubai Law No. What did the credit shield cover when you defaulted? The UAE uses the school system as well as censorship and control of the press and the broadcast media to prevent blasphemy. Article 1 and Article 66 of UAE's Penal Code requires hudud crimes to be punished with the death penalty; therefore, apostasy is punishable by death in the UAE. Since the issuance of a returned cheque is considered a criminal offense in the UAE, as soon as the complaint is filed with the police, a travel ban and arrest warrant are automatically issued which prevents the drawer from leaving the UAE, or if the drawer has already left the UAE, he will be arrested upon re-entrance. In this case, the creditor can initiate a civil or commercial case, as the case may be, by proceeding with the normal litigation route before the courts and judicial tribunals. Insufficient balance was available in the account to cover the amount mentioned on the cheque. Will this be an issue?'. When one defaults on a debt, the bank may cash the security cheque initially provided by the debtor to recover the outstanding dues. A civil case is a legal case involving civil law or common law, which involves disputes between individuals or organizations in which some form of compensation may be awarded to the victim. There are limitation periods in UAE Law and these vary depending on the type of claim and legislation applicable and in a situation such as this can be either 10 or 15 years. UAE Law No. Ultimately, we want to consolidate our dues so that we can manage everything. The UAE Federal Penal Code No. BREAKING NEWS: UAE & INTERPOL To Catch UAE Expats With Pending Financial Loans? the date of issue, and, in accordance with Article (617) of the Commercial Transactions Law, the cheque cannot be presented before this date. The cheque is very old and was damaged or destroyed and cannot be cashed. Article (632) of the Commercial Transactions Law authorizes the bearer of the cheque to take legal action against the person issuing the cheque or any party responsible for it if the cheque is presented within the specified period and has not been paid. However, he will be required to submit his passport at the police station as security. I read that a civil case must be filed within three years from the date a police case was lodged. With the current loan commitments, outstanding credit card debts, inactive (but still legally due) debts on your as well as your husband's list of liabilities, this situation demands immediate attention. There is also a civil case. Know how to avoid fraud while dealing with other parties in … is a Senior Partner of HHS Lawyers in UAE. I signed up for a credit card and loan in 2013 with a lender in the UAE to pay my children’s school fees and the rent. However, it is worth noting that these acts are not considered a crime except in the case of the combination of the criminal act with the criminal intent, and the latter means the intention of the perpetrator of the act to inflict material harm on the complainant. Article (599) of the Commercial Transactions Laws prohibits the issuance of a cheque unless the drawer of the cheque has sufficient funds available in the drawee bank account to honour the cheque. In general, the UAE Civil Law limits the debt recovery period to 15 years unless a specific provision indicates otherwise. The UAE Penal Code sets out the legal provisions that determine the actions recognized as crimes in the UAE and prescribes the penalties incurring for the such acts. Either that, or our understanding of what it says about signing security cheques is wrong. – Pocketful of Dirhams, Can Bitcoin’s value really soar to $400,000? Each level of court has a circuit to look into the various types of cases such as: personal status cases, criminal cases and civil cases. Why did the insurance fail to cover all the dues? Because you have not made any repayments in recent years, it is possible the bank subsequently filed a civil case for collection. Criminal and civil cases also differ in terms of its punishment. In the event this cheque bounces, the bank has the right to file a criminal case against the debtor. Regarding the legality behind when and under what circumstances a bank can file a civil suit against a borrower, it is understood that under UAE Civil Law, lenders in the country are allowed a period of 15 years to legally recover a debt. In this case, the creditor can initiate a civil or commercial case, as the case may be, by proceeding with the normal litigation route before the courts and judicial tribunals. Furthermore, as stated in Article (618) of the Commercial Transactions Law the cheque be must be presented for payment within six months from the date of issuance. UAE legal Q&As: must a civil case be filed to have medical bills from a car accident paid? It is never wise to borrow on a credit card to meet cost of living expenses because interest rates are very high. Civil cases are typically disagreements between individuals about legal responsibilities they own each other. The UAE uses the school system as well as censorship and control of the press and the broadcast media to prevent blasphemy. 6th Floor, Building 4 East. In this article, we will deal with the returned cheque, the penalties enforceable for issuing a returned cheque, and the procedures followed in that regard. Because the UAE is not a signatory to the 1980 Hague Convention on the Civil Aspects of Child Abduction, foreign court orders regarding child custody are not enforceable in the UAE. The drawer fabricates reasons thus preventing payment of the cheque value. With no money to pay the reduced sum offered, you must negotiate with the lender to settle on a repayment schedule. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. The Public Prosecutor may make the following decision based on the evidence before it: The role of the Criminal Court is to hear the litigants’ arguments and review the evidence provided, after which it will verify whether a crime has in fact been committed. The law states that the party cannot file a criminal complaint upon passage of limitation period and the public prosecutor has the authority to reject the case due to … When blasphemy occurs, the Emirates have two court systems to mete out punishment. That is according to the lawsuits circumstances and documents. The UAE's judicial system respects the dignity of people. 10 of 2014 concerning the Civil Procedural Law regulates the method, procedures and jurisdiction for litigations in civil… A reader asks if they need to file a civil case to have medical bills covered in a car accident and another asks about the punishment for cybercrime In the event that the parties are unable to settle the dispute over the returned cheque at the police station, the police shall refer the complaint to the Public Prosecutor for further investigation. To collect the amount owed, banks will subsequently file a post-jail civil case for collection pursuant to Articles 246 and 710 of the UAE Civil Code obliging the debtor to pay his creditor as per the terms of the loan contract. Article (634) of the Commercial Transactions Law states that the bearer reserves his right to have recourse against the drawer, even when he fails to present the cheque to the drawee, or to make a protest or to take an alternative action within the prescribed time limit; save where the drawer has provided the consideration for payment and such consideration has remained available with the drawee until the expiry of the time limit for presentation of the cheque, then such consideration ceased to exist due to an act not attributed to the drawer. Question: What is cybercrime and its punishment? The Debt Panel: 'I consolidated my debts three years ago, then I built up more', A nine-step guide to help you renegotiate bank debts in the UAE, UAE residents can now buy credit reports via a mobile app. Under UAE law, a criminal complaint can be made against an individual for libel and slander under Articles 371 to 380 of the UAE Penal Code (Federal Law No. : 5008, Rigga Road Dubai, P.O.Box 4896, U.A.E. Article (483) of the Commercial Transactions Law defines a cheque as “An order issued by a person (the drawer), to the bank (the drawee) that payment be made on the specified date (date of issue) an amount of money to a third person (the payee) as the beneficiary or bearer of the cheque ”. This Feb 2007 news item clarifies that the punishment is to be carried out "moderately and not with force or with a thick whip" and that it is not supposed to cause bleeding. And the cant do anything until and unless you return to UAE. 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