Expired cheques in the UAE: What the law says about your rights and legal options

Time of India

03-07-2025

A bounced or expired cheque in the UAE may still support a civil claim, if filed within legal time limits/ Image: Representative
A common concern among residents and business owners in the UAE is what to do when holding an old, uncashed cheque, especially one that's worth a significant amount of money. A recent case sheds light on this issue, offering important insights into what the law allows, what deadlines apply, and what rights a cheque bearer retains after key time limits have passed.
The Query: A Four-Year-Old Cheque and a Refusing Bank
A person submitted a legal question after facing refusal from a bank to accept a cheque that was issued over four years ago. The cheque, being more than six months past its date of issuance, was deemed invalid for processing by the bank. The individual also wanted to know whether they could take immediate legal action to stop the issuer from leaving the UAE.
The Legal Position: Missed Deadlines Limit Your Options
According to UAE law, the ability to act against a cheque issuer diminishes significantly once certain legal timeframes have lapsed.
In this case, the individual has lost the right to take immediate preventive action such as banning the cheque issuer from leaving the country due to delays in presenting the cheque and initiating legal steps.
As clarified in the official legal response:
'You do not have the legal right to take immediate action to ban the drawer because you have lost the opportunity to use the cheque as an execution document due to the lapse of more than two years from its due date and the failure to present the cheque to the bank within the required period.'
Key Legal Provisions to Know
The law governing such cases is outlined under multiple articles from the UAE's legal code:
Article 670 of the Commercial Transactions Law
This article sets a strict limit on how long a cheque can be used to claim payment. It states:
'Claims for recourse by the cheque bearer against the drawer, endorsers, and other obligors to pay the cheque value shall not be heard, upon denial and absence of a legitimate excuse, if more than two years have passed since the expiry of the presentment period.'
In simpler terms, after two years from the end of the cheque's presentation window (which itself is six months from the cheque's date), legal claims to recover money based on the cheque will no longer be entertained unless there's a valid excuse.
Article 336 of the Civil Transactions Law
This article provides some legal room to recover the amount via a civil lawsuit, but not through direct cheque execution. It states:
'Claims arising from a beneficial act shall not be accepted after three years from the date the creditor became aware of their right of reversion, and in any case not later than 15 years from when the right arose.'
This means that while the cheque itself may not be valid for direct enforcement, the person can still file a civil case to claim the amount stated in the cheque treating the cheque as supporting evidence of debt rather than a binding financial instrument.
What You Can Do Now
If you hold an expired cheque, here are the steps you can take:
File a Civil Case: You may sue the cheque issuer in civil court for the amount mentioned, treating the cheque as documentary proof of a debt.
Prepare Evidence: The burden of proof lies with the cheque holder. You must present supporting documents or agreements that show the drawer owes you the money.
Use Legal Tools: You may rely on written documents and even request that the court issue an oath to support your claims.
As clarified:
'The liability to prove your case lies with you. You may rely on an oath as well as any written documents between you and the drawer.
The court will make its decision based on the documents submitted.'
Legal Rights Still Exist, But Timing Matters
Although UAE law does not allow you to use an old cheque as a tool to initiate immediate legal action such as a travel ban or criminal enforcement you are not without options. A civil case remains possible, especially if you act within the broader civil claim limits.
However, this situation highlights the importance of timing. Always present cheques to the bank within six months of issuance, and if a dispute arises, initiate legal steps swiftly ideally within two years to maintain your strongest legal position.