We cannot predict that our financial situations will be the same all time. There may be ups and downs. But when we are financially broke, and we don’t have enough money in our bank account, bounced cheque’s turn as a villain against us. And yes, when that cheque bounces?
When the cheque bounces, depending on the cheque amount, a criminal case shall be filed.
That is if the cheque amount is up to 200,000 dirhams, a fine amount can be paid to the public prosecution instead of serving a jail sentence by the issuer of the bounced cheque. But failure in payment of fine will result in imprisonment.
In case the cheque denomination is more than AED 200,000, it is up to the discretion of the court to issue a fine or grant a jail sentence.
The fine amount also varies with the amount mentioned in the bounced cheque.
In this case, not all the partners of a company have to face case or troubles. It won’t affect every members, but the one who represented the company for the cheque transaction, which is the authorised person – who signed the cheque has to face the legal consequences.
If you are signing the cheque as a representative of your company, be aware that you will be legally responsible to honor the financial commitments.