Why You Should Avoid Signing Blank Cheques in the UAE
The cost of living in the UAE is increasing and hence, the need for money. To save time and prevent financial problems, people often issue blank cheques. However, this is one of the biggest mistakes they make. The criminal lawyers in Dubai have seen multiple such cases where client issues blank cheques in advance. They give the right to the beneficiary to fill in the date and money. The lawyers do understand the need to secure payments and financial troubles, but here is why they advise not to issue blank cheques.
Legal Problems for Issuer
The court of UAE has declared that the issuance of the blank cheque means to give authority to the receiver of the cheque. Doing so, the receiver is authorized to fill in the missing information. As a result, if anything goes wrong the issuer of the cheque cannot file a complaint. A blank cheque is considered valid and cannot be challenged by the issuer of the cheque.
It is Illegal
The Supreme court of Dubai has passed a law on to the criminal court of cassation # 123 in 2006. Moreover, it was passed again by the Supreme court of Dubai on the Criminal court of cassation # 324 in 2011. The court declared that the blank cheque without any suspicion will give the authority to the receiver to enter the date and the amount on the cheque. The receiver of the cheque will not be questioned if he increases or decreases the amount due, whether intentionally or unintentionally. Moreover, in case of dispute, the issuer can end up in prison.
It is Not Possible to Prove in Court
Legal lawyers in the UAE encourage everyone to not issue any blank cheque. They should be cautious even before applying for short term credit loans. If there is a need to deposit a security cheque, they should at least write a certain amount. However, never issue a cheque without writing an amount. If they do so, they will not be able to prove the receiver of the cheque wrong in the court.
It becomes a Liability
Even if the issuer of the cheque leaves the UAE and closes all his bank accounts, he is liable to pay for the issued blank cheque. When leaving the country, you need to ensure to take back all blank cheques, if any. Otherwise, even after a certain time, the receiver of the cheque can deposit the cheque in the bank and file a criminal case against you.
The criminal lawyers of Dubai suggest you avoid any such circumstances and situations which call you to sign a blank cheque. As the court says that by doing this, you are giving authority to creditors and any wrong deal cannot be proved right in the criminal court of Dubai.
If something like this happens, seek legal advice immediately.