The Minister of Justice also explained that the cheque is one of the most important commercial papers, most commonly used in business, which represents a well-known payment or negotiation tool instead of money. Such an instrument can only play its role as a payment tool if dealers are assured of it, and trust that obtaining it in exchange for their rights is as good as a cash payment. The only way to enhance confidence in cheques is to reinforce the bearer’s rights and to strengthen their associated guarantees. For this reason, recent legislative amendments to the Commercial Transactions Law provide new alternatives and mechanisms to ensure collection of the cheque value in the fastest and simplest way possible. These include requiring the drawee bank to pay the cheque’s value at least partially, debiting the entire amount available with the drawer, and making the returned cheque a writ of execution to be executed directly by the execution judge, placing an executive formula on the returned cheque and collecting its value without resorting to civil or criminal lawsuits. This will lead to increased confidence in cheques as a commercial document that ensures prompt payment of its values.
He noted that the amendments introduce a number of accessory penalties, including withdrawal of chequebook from the transgressor, denying them the right to receive new chequebooks for a maximum of five years, and suspending their professional or commercial activity.
Al Nuaimi confirmed that the new amendments will facilitate litigation procedures, avoid the accumulation of cheque cases at prosecution offices before civil and criminal courts, thus saving money and effort, consistent with the UAE’s policies and directives in this regard.
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