Bounced rent cheque in the UAE: what landlords can do

The short answer

Civil, not criminal, since January 2022

Federal Decree-Law No. 14 of 2020 changed the Commercial Transactions Law from 2 January 2022: a cheque that bounces because the account does not hold enough money is no longer a criminal offence. The new Commercial Transactions Law, Federal Decree-Law No. 50 of 2022, in force since 2 January 2023, keeps that approach. For a landlord, it means a returned rent cheque is recovered like any other debt, through the civil courts.

When a bounced cheque is still a crime

The law still punishes a drawer who acts in bad faith. That covers, for example:

• closing the account, or withdrawing the balance, before the cheque date so it cannot be paid;
• telling the bank not to pay the cheque without a reason the law accepts;
• signing or writing the cheque on purpose in a way that stops it being paid;
• forging a cheque or knowingly using a forged one.

In those cases a criminal complaint is still possible, alongside the civil claim for the money.

Partial payment by the bank

When the account holds part of the amount, the bank must pay that part unless the holder refuses it, and note the balance on a certificate. Take the part payment: the claim for the rest stays open, and the certificate is the evidence for it.

Going to the execution judge

Under Article 667 of Federal Decree-Law No. 50 of 2022, a cheque the bank has stamped as returned for lack of funds is itself a writ of execution. The holder can ask the execution judge to enforce it in full, or for the unpaid part, without first filing a normal lawsuit. Once the file is open, the court recovers the amount with the enforcement measures of the Civil Procedure Law.

Execution files are opened with the courts of the emirate, mostly online: the Dubai Courts in Dubai, the Abu Dhabi Judicial Department in Abu Dhabi, and the federal courts in most other emirates. Fees and documents vary, so check the court's site or ask a lawyer.

Eviction for unpaid rent in Dubai

A bounced cheque is also unpaid rent under the tenancy. Article 25 of Dubai Law No. 26 of 2007 lets the landlord seek eviction before the lease ends if the tenant does not pay within 30 days of being notified, unless the contract says otherwise. The notice goes through a notary public or by registered mail, and the eviction case is filed with the Rental Disputes Center. Other emirates have similar rules in their own rent laws.

What to do, step by step

1. Collect the paperwork. Keep the original cheque and the bank's return memo, and note any part the bank paid.
2. Talk to the tenant first. Most returned cheques are settled by a replacement cheque, a transfer or cash within days. Put what you agree in writing.
3. Send a formal notice if it is not settled. In Dubai, use a notary or registered mail so the 30 days can be proved.
4. Open an execution file for the amount. Take the returned cheque to the execution judge for the unpaid balance.
5. File for eviction if the rent stays unpaid. After the 30 days, the Rental Disputes Center hears the case.

Keeping each cheque's status in one place makes every step easier to prove. Aangan for UAE buildings records a returned cheque with the bank charges and any part paid, drafts a polite notice to the tenant, and tracks the replacement until the rent is settled. Our free PDC cheque schedule gives you the register to start with.

Sources

• Federal Decree-Law No. 14 of 2020 on returned cheques (Khaleej Times)
• Federal Decree-Law No. 50 of 2022, Article 667: the cheque as a writ of execution (Hadef & Partners)
• Dubai Law No. 26 of 2007, Article 25: eviction for unpaid rent (Gulf News)