Where a cheque is returned unpaid in the UAE, the holder has two routes to recover the amount: a criminal complaint against the person who issued the cheque, or an application to the execution court for an order that the amount be paid. Which route is available depends on the reason the bank returned the cheque.
First Step: Deposit the Cheque
However strong the suspicion that the account holds no funds, the cheque should still be deposited on or after its date. When the bank declines to pay, it returns the cheque with a notice stating the reason for the return. The reason recorded on that notice determines which route the holder may take.
Can You Open a Criminal Case for a Bounced Cheque in UAE?