A typical concern amongst residents and enterprise house owners within the UAE is what to do when holding an previous, uncashed cheque, particularly one which’s value a big amount of cash. A latest case sheds gentle on this difficulty, providing vital insights into what the legislation permits, what deadlines apply, and what rights a cheque bearer retains after key closing dates have handed.
The Question: A 4-Yr-Outdated Cheque and a Refusing Financial institution
An individual submitted a authorized query after dealing with refusal from a financial institution to just accept a cheque that was issued over 4 years in the past. The cheque, being greater than six months previous its date of issuance, was deemed invalid for processing by the financial institution. The person additionally wished to know whether or not they might take instant authorized motion to cease the issuer from leaving the UAE.
The Authorized Place: Missed Deadlines Restrict Your Choices
Based on UAE legislation, the power to behave in opposition to a cheque issuer diminishes considerably as soon as sure authorized timeframes have lapsed. On this case, the person has misplaced the suitable to take instant preventive motion reminiscent of banning the cheque issuer from leaving the nation because of delays in presenting the cheque and initiating authorized steps.As clarified within the official authorized response:“You shouldn’t have the authorized proper to take instant motion to ban the drawer as a result of you’ve got misplaced the chance to make use of the cheque as an execution doc because of the lapse of greater than two years from its due date and the failure to current the cheque to the financial institution inside the required interval.”
Key Authorized Provisions to Know
The legislation governing such circumstances is printed underneath a number of articles from the UAE’s authorized code:
- Article 670 of the Industrial Transactions Legislation
This text units a strict restrict on how lengthy a cheque can be utilized to assert fee. It states:“Claims for recourse by the cheque bearer in opposition to the drawer, endorsers, and different obligors to pay the cheque worth shall not be heard, upon denial and absence of a reputable excuse, if greater than two years have handed because the expiry of the presentment interval.”In less complicated phrases, after two years from the top of the cheque’s presentation window (which itself is six months from the cheque’s date), authorized claims to get well cash primarily based on the cheque will now not be entertained except there’s a sound excuse.
- Article 336 of the Civil Transactions Legislation
This text offers some authorized room to get well the quantity by way of a civil lawsuit, however not by way of direct cheque execution. It states:“Claims arising from a useful act shall not be accepted after three years from the date the creditor turned conscious of their proper of reversion, and in any case not later than 15 years from when the suitable arose.”Which means whereas the cheque itself might not be legitimate for direct enforcement, the individual can nonetheless file a civil case to assert the quantity acknowledged within the cheque treating the cheque as supporting proof of debt moderately than a binding monetary instrument.
What You Can Do Now
Should you maintain an expired cheque, listed here are the steps you possibly can take:File a Civil Case: You might sue the cheque issuer in civil court docket for the quantity talked about, treating the cheque as documentary proof of a debt.Put together Proof: The burden of proof lies with the cheque holder. You should current supporting paperwork or agreements that present the drawer owes you the cash.Use Authorized Instruments: You might depend on written paperwork and even request that the court docket difficulty an oath to help your claims.As clarified:“The legal responsibility to show your case lies with you. You might depend on an oath in addition to any written paperwork between you and the drawer. The court docket will make its resolution primarily based on the paperwork submitted.”
Authorized Rights Nonetheless Exist, However Timing Issues
Though UAE legislation doesn’t can help you use an previous cheque as a instrument to provoke instant authorized motion reminiscent of a journey ban or legal enforcement you aren’t with out choices. A civil case stays potential, particularly should you act inside the broader civil declare limits.Nonetheless, this case highlights the significance of timing. At all times current cheques to the financial institution inside six months of issuance, and if a dispute arises, provoke authorized steps swiftly ideally inside two years to take care of your strongest authorized place.
