Court sets new principle on dud cheques

The Dubai Court of Cassation has set a new legal principle that a UAE court can hear cases related to bounced cheques, as long as one party to the case draws a bounced cheque on a bank operating in the country. This is applicable even if the cheque is handed over in a foreign country.

Dubai Public Prosecution referred the defendant to court for issuing a dud cheque for SR25 million (Dh24.48m). The cheque was issued in Switzerland.

The Court of First Instance sentenced the defendant to three years and obliged him to pay Dh200,000 as temporary compensation.

The defendant challenged the verdict at the Court of Appeal, which ordered the cancellation of the verdict, saying a Dubai court cannot hear such a case. The Public Prosecution challenged the ruling at the Court of Cassation, which has based its new principle on Article 142 of the Code of Criminal Procedure.

Meanwhile, the Dubai Commercial Court adjourned to June 21 the case filed by Mashreq against Saudi businessman Maan Al Sanea. The court is waiting for the report of the accountancy expert. The bank is demanding the return of Dh542m.

In the latest session, the Mashreq lawyer presented confirmation that the bank paid the Dh7,000 set by the court as fees for the accountancy expert.

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