Wednesday, December 30, 2009

Bounced cheques committee

Only a few weeks ago a decree was issued setting up a judicial committee to settle disputes over bounced cheques relating to property in Dubai.

With speed that surprises me the bounced cheques committee will apparently be ready to start hearing cases in the next two weeks.

It's a huge and welcome move away from the existing 'go to jail' system.

The committee has a lot of power too.

The decree says that Public Prosecution and courts can't carry out any investigation or issue any ruling relating to bounced property cheques until the case is looked into by the committee.

It also says that judgments pronounced by the committee will be decisive and cannot be challenged. They'll be implemented through the execution department of the Dubai Courts.

They're going to be busy - they say that over 500 cases have already been transferred to them by Jebel Ali police station.

EmBiz 247 has the story here.


Anonymous said...

It also says that judgments pronounced by the committee will be decisive and cannot be challenged.

Maybe, but you can always still be sued in a civil case related to your bounced check. Not many would or do have the money to go that route, but it is an option, and I''m sure has, and will happen.

Cat Russell said...

Interesting that this is established in two weeks, yet the passing of a by-law in respect of a law passed in 2006 (yes the service charge debacle) has taken over 3 years. I guess it all depends on whose pocket is bearing the brunt :-)

Rise said...

again dubai does it the wrong way! why only cheques relating to real estate? i find it amazing that a developer with a bad cheque can get away while the contractor who has not been paid by the same developer ends up in jail for a bounced chq!!

Anonymous said...

till today the committee did not finalize single case , and the bounced cheques system are as it is , investors and business men are still been sent to jail and police are still handling the real eastate cheques like before .

it seems the entire law was for publicity purpose only , and there is absolutly no intention to implemet it .

on the countrary the police has made a new system to register bounced cheques cases online , which mean they are adobting their facilities to the wrong practice instead of corecting it.(it's really strange practice !!0