Banking cases are a variety of disputes and legal proceedings that arise between banks and financial institutions on the one hand, and individuals or companies on the other. These cases may relate to loans and credit facilities, problems with bank accounts, or other financial transactions. Managing these cases effectively requires specialized legal expertise in complex and ever-changing banking laws and regulations.

In the United Arab Emirates, banking cases are one of the most important legal areas that require continuous attention and follow-up. Recent years have witnessed a significant growth in the volume of financial transactions and the complexity of the legislative and regulatory environment of the banking sector. Therefore, it has become necessary for individuals and companies to seek the help of legal experts specialized in this field to deal with banking problems professionally.

Types of banking cases

  • Loan and credit facilities cases: such as disputes over non-payment, rescheduling loans, implementing guarantees provided, or claims related to loan interest and late fees.
  • Bank account cases: such as disputes over bank fees, financial fraud and unauthorized withdrawals, or freezing accounts as a result of other legal cases.
  • Financial transaction cases: such as disputes over money transfers, settlements of deals and contracts, or defaults in payments between different parties.
  • Regulatory compliance cases: such as disputes over non-compliance with anti-money laundering or terrorist financing regulations, or violations related to reporting suspicious transactions.
  • Banking disputes: Representing clients in all banking disputes, banking business and legal claims arising from loans, documentary credits, letters of guarantee and all credit contracts.
  • Islamic finance: We work in a number of Islamic banking institutions and provide legal advice in the field of issuing Islamic financing instruments and Islamic finance and investment companies.
  • Banking contracts: Our specialists provide guidance on effective, safe and appropriate financial solutions for large companies including corporate finance, deposits, and international transaction services.
  • Mergers and acquisitions: Legal lawyers provide guidance and support on acquisitions and mergers between small and medium-sized companies.
  • Project banking services: Our team provides assistance to small and medium-sized companies and individuals in banking and financing services and project loans throughout the United Arab Emirates.
  • Bank cheque cases: These are cases arising from the use of credit cards, debit cards, or other electronic payment tools. These cases include cases such as:
  • Fraudulent transactions
  • Refusal to pay
  • Disputes over the value of transactions
  • Guarantee cheque cases: These are cases arising from the issuance of a guarantee cheque by the customer in favor of the bank as a guarantee to repay a loan or other financial obligation. These cases include cases such as:
  • Refusal to pay the cheque
  • Suspending the customer’s account
  • Claiming compensation for damages.

Legal provisions regulating bank cheque and guarantee cheque cases

  • Federal Law No. 18 of 2020 regarding electronic transactions: This law regulates the use of electronic tools in financial transactions, and defines the rights and duties of both consumers and banks.
  • Federal Law No. 19 of 2016 regarding the regulation of payment operations: This law regulates payment operations using credit cards, debit cards, and other electronic payment tools.
  • Decree No. 29/2011 regarding bank loans and other services provided to individual customers and circulated to all banks in the UAE.
  • Federal Law No. 50 of 2022 regarding commercial transactions.
  • Federal Law No. 30 of 2020 regarding civil transactions.
  • Federal Law No. 54 of 2023 regarding banking legislation.

 Direct execution on guarantee cheques

  1. The concept of direct execution: It is a legal procedure that allows the creditor (in this case the bank) to obtain an executive formula from the court directly on the debt instrument (in this case the guarantee cheque) without the need to file a lawsuit.
  2. Conditions for direct execution on guarantee cheques:

Cheque requirements

A set of data has been identified that the cheque must contain in order to be valid, including:

  1. The presence of the word “cheque” written in the text and in the language used in writing it.
  2. An explicit and unconditional order to pay a specific amount of money
  3. Mention the name of the person obligated to pay (the drawee)
  4. Mention the person who should receive the payment or his order.
  5. Specify the place of payment.
  6. Date of issuance of the cheque and place of issuance.
  7. Signature of the drawer who issues the cheque.

Cases in which a cheque is considered an enforceable instrument according to legal decrees

Where initially, the General Authority relied on Article 212 of Federal Decree-Law No. 42 of 2022, which stipulates that compulsory execution requires the existence of an enforceable instrument that achieves a right that is established and specified in amount.

Then, the General Authority relied on Article 667/1 of Federal Decree-Law No. 50 of 2022, which stipulates that a cheque that is paid by the drawee due to the absence or insufficiency of a balance is considered an enforceable instrument, and its holder has the right to request its enforcement by compulsory means.

It is worth noting that the text of Article 682 of the same law includes exceptions to the enforceability of a cheque, such as the case of filing a criminal lawsuit against the drawer due to cheque crimes included in the law, but this does not affect the enforceability of the cheque or taking other judicial measures.

Direct execution procedures on guarantee cheques

documents

Filling out the execution list, including a request to place the executive formula and the document portfolio electronically. Downloading a certificate with the international account number of the execution applicant in PDF format. Downloading a certificate from the bank on which the cheque is drawn in PDF format, containing the following information:

  • The name of the account holder in Arabic and English.
  • His full address and email listed in the bank system.
  • His means of communication according to what is listed in the bank system and the contract with the account holder.
  • The ID number or passport number of the account holder (the person against whom execution is being carried out) with the residence (if any).
  • The commercial license for companies with the ID number or passport number and the director’s residence.
  • The place of work of the person against whom execution is being carried out and his work data, if any.
  • Other accounts in the bank belonging to the account holder and the balances available in them (preliminary inquiry).
  • The details of the drawer who signed the cheque with his ID number, passport number and authorization document.
  • The name of the beneficiary receiving the value of the cheque with his ID number or passport number.
  • The recipient’s information for the cheque value, including address and means of communication.
  • The reason for the cheque being returned unpaid.
  • The date the cheque was returned and the branch it was drawn on.
  • The value of the cheque, the amount paid and the remaining amount

 the conditions

The cheque must be within the jurisdiction of the execution court, so that it is not included in the criminal cases related to the cheque: cheque forgery crimes, fraud using cheques by giving an order to the bank not to cash the cheque without right, withdrawing the full balance before the date of issuance of the cheque, and intentionally writing or signing the cheque in a way that prevents it from being cashed. Complete the data according to the form of the execution regulation for cheques and all documents must be electronic in PDF format. If the documents are not in Arabic, they must be translated into Arabic with a legal translation certified by the Ministry of Justice in the Emirates.

After registering the file, the customer will receive a decision to issue the executive formula and a decision will be issued to prevent the person against whom the execution is being carried out from traveling in cases estimated by the execution judge Notifying the person against whom the execution is being carried out at the address stated in the regulation, indicating

After 15 days from the legal notification of the person against whom the execution is being carried out, the execution applicant submits a request to inquire and seize the apparent funds of the person against whom the execution is being carried out and proceed with the sale procedures and circulate the person against whom the execution is being carried out to bring him.

The journey of the executed customer

Payment of the claim amount pursuant to the supply order included in the notice:

Or within the 15-day period from the date of the advertisement, he submits a settlement project to pay the claim amount, including a report disclosing his assets and financial obligations issued by the Union Credit Information Company, a salary certificate, a statement of vehicles, commercial licenses, stocks, bonds and real estate owned by him.

He can file an objective execution dispute with serious reasons regarding the entitlement of the cheque or his release from its consideration after paying a deposit of (5,000) five thousand dirhams, which is refunded in the event of acceptance of the objection and confiscated by force of law in the event of its loss. The dispute shall not be accepted unless it is accompanied by proof of depositing the deposit

Permissibility of objecting to the payment of the cheque

The owner of a cheque issued to bearer or lost may object to the payment of its value with the drawee bank, and the drawee bank shall refrain from paying the value of the cheque to the holder and set aside the consideration for the payment of the cheque until the matter is decided. Provided that the bank on which the cheque is drawn shall, at the objector’s expense, publish the number of the lost or damaged cheque, its amount, the name of the drawer, the name of the objector and his address in one of the daily newspapers issued in the UAE in the Arabic language. Any action taken on the cheque after the date of publication shall be null and void.

Dispute in opposition and claim of entitlement

  1. The holder of a cheque who is opposed to payment of its value may dispute the opposition with the drawee bank, and deliver the cheque to the bank against a receipt, then notify the objector of the name and address of the holder of the cheque.
  2. The objector must file a claim of entitlement to the cheque within thirty days from the date of receiving the notification, and the drawee bank may not pay its value except to the party from among the opponents who submits a final judgment to it regarding his ownership of the cheque or an amicable settlement certified by both parties acknowledging his ownership.
  3. If the objector does not file a claim of entitlement within the period mentioned in the previous paragraph, the holder of the cheque must obtain a ruling from the judge of urgent matters not to consider the opposition, in which case the holder of the cheque shall be considered, with respect to the drawee bank, its owner.

Cheque Ownership Claim and Claim for Payment

If six months have passed from the date of the objection without the holder of the cheque filing a claim for payment, the objector may, within the following month, file a lawsuit before the competent court against the drawee requesting a ruling on his ownership of the cheque and permission to collect its value.

If the objector does not file the lawsuit referred to in the previous paragraph or it is ruled to reject it, the drawee bank must re-record the payment consideration in the assets side of the drawer’s account.

Legal services that we provide

We have a team specialized in banking cases that provides a range of integrated legal services including:

  1. Legal Consultations: We provide comprehensive legal consultations on banking and financial matters, including the interpretation of contracts and agreements, and guidance on legal obligations and rights.
  2. Preparing Legal Documents: We draft and prepare various banking legal documents such as loan contracts, guarantee agreements, credit facility forms, and other contractual instruments.
  3. Representation in disputes and lawsuits: We provide effective legal representation for clients in banking disputes and conflicts before courts and arbitration bodies, including preparing defense statements, presenting evidence and pleadings.
  4. Regulatory Compliance: We help clients successfully deal with regulatory and supervisory bodies in the banking sector, including assistance in complying with anti-money laundering and terrorist financing regulations.
  5. Innovative Legal Solutions: We develop creative legal solutions to clients’ banking problems, including restructuring credit facilities and managing legal risks.

If you are facing any banking problem or dispute, do not hesitate to contact us to book a legal consultation. Our specialized team will carefully evaluate your case and provide the necessary legal advice to obtain the best possible results. Contact us now at for more information about our banking legal services.