Acquittal In A Cheque Case - Case Study

Cheque cases, following amendments to the commercial law, have been limited to specific situations for an act to be considered a crime. The crime of issuing a Cheque without sufficient funds has been abolished (Articles 401, 402, and 403 of the UAE Penal Code). A distinction was made between the act of a Cheque bouncing due to insufficient funds, which is no longer a crime, and a Cheque bouncing due to the drawer withdrawing the amount, closing the account after issuing the Cheque, or deliberately signing it in a way that prevents it from being cashed. Criminal penalties still apply in these cases, with some modifications.

The new Article 641 (1 bis) stipulates imprisonment for no less than six months and no more than two years, and a fine of no less than 10% of the Cheque's value, with a minimum of AED 5,000 and no more than double the value of the Cheque, or one of these two penalties for anyone who commits the following acts: