Cheque Dishonour (Rental Payments)
Cheque dishonour (a returned or 'bounced' cheque) in the context of Dubai tenancy occurs when a tenant's post-dated rental cheque is presented by the landlord and refused by the bank — typically due to insufficient funds. In the UAE, issuing a cheque that subsequently bounces is a criminal offence under Federal Law No. 18 of 1993 (Commercial Transactions Law), in addition to creating civil liability for the rent owed.
Federal Law No. 18 of 1993 (Commercial Transactions); Federal Law No. 14 of 2020 (UAE Cheque Law Reform)
In Depth
UAE cheque law treats a bounced cheque as a criminal matter. A landlord whose rental cheque bounces can file a criminal complaint at the Dubai Police, which can lead to arrest and prosecution of the tenant. This is distinct from the civil RDSC process for unpaid rent. For tenants, this creates serious risk if they allow a rent cheque to bounce.
When a cheque bounces, the landlord must notify the bank's return and typically receives a 'returned cheque' notification from the bank. The landlord can then file: (a) a criminal complaint at Dubai Police, and/or (b) a civil claim at the RDSC for the unpaid rent and any associated losses.
The 2022 amendment to the UAE Cheque Law (Federal Law No. 14 of 2020, effective January 2022) introduced some reforms — including partial payment provisions and decriminalisation for certain first-time small-value bounces. However, deliberate or repeated cheque bouncing remains a serious criminal matter.
Tenants who anticipate difficulty covering a rental cheque should proactively contact their landlord and attempt to negotiate a replacement arrangement (e.g. cash, bank transfer, or a delayed replacement cheque) before the cheque is presented. Proactive communication reduces the risk of criminal proceedings significantly.
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