What steps should a creditor take to recover his money if a cheque issued by a debtor bounces?
According to Ayoub Ali Hatem, a Dubai court judge, the aggrieved creditor must take three key steps besides two precautionary measures.
The first step is to register a complaint at a police station against the debtor who issued the dud cheque.
The next thing to do is to file a lawsuit against the debtor in court.
The second key step for the creditor is to ask the court to issue a verdict in his favour and order the debtor to reissue the check.
The creditor must be in possession of the original cheque. The new cheque must be of the same value as the original one.
The third step is to file a lawsuit claiming compensation plus the value of the original cheque.
The judge added that a ruling of the court in favour of the creditor does not mean he has got the right to claim the money but it is a proof of the validity of his claim.
The penal provision is a tool to put pressure on the debtor to pay up, he added.
A precautionary measure that the creditor can take is to request an interim relief judge to issue an order to prevent the debtor from travelling abroad.
For this, he has to convince the judge that he has strong reason to fear that that the debtor may flee the country.
Alternatively, the creditor can ask the police to arrest the debtor to prevent him from fleeing, the judge said.
The second precautionary measure the creditor can take is to ask the interim relief judge to order seizure of the debtor’s bank account or property.
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