Faisal Ali Addabi

Summary of the Problem: According to applicable laws in most countries in the world, a cheque, which satisfies all legal requirements, enjoys full criminal protection, that is to say, if the cheque bounces due to lack of funds or lack of sufficient funds or signature difference, that will constitute a criminal offence and the beneficiary of the cheque shall have the right to report the matter to the police or prosecutor and file a criminal case in front of the criminal court. It is known that criminal procedures in respect of returned cheque are quick and short procedures which usually end up with deterrent imprisonment and fine judgments against the drawer of the cheque due to breach of his\her personal obligation to pay the value of the cheque, so, a mere threat to take criminal procedures against the drawer usually forces the drawer to pay the value of the cheque in full to the beneficiary in no time for fear of imprisonment and fine !!

Under certain circumstances and for certain legal reasons, the cheque loses the criminal protection and turns into an ordinary civil debt document under which the beneficiary shall have no right to take any criminal procedures and the only option available to the beneficiary will be resorting to civil court and taking the slow and long civil procedures which consume much time, effort and money and which usually end up with civil judgments which order judgment creditors to pay judgment amounts to judgment debtors

The most important legal question can be asked as follows: How can the beneficiary ensure that his\her cheque has full criminal protection and will not lose it under any circumstances?

Summary of the Solution: in order for the beneficiary to ensure that his\her cheque has full criminal protection and will not lose it under any circumstances, the beneficiary must ensure that all the following four legal conditions are met:

Firstly: all legal requirements must be available on the cheque, the cheque must contain all the following legal requirements: the word “cheque” written on the cheque in the same language of the cheque, place and date of issue of the cheque, an unconditional order to pay a specific amount of money, amount of the cheque in letters and numbers, the beneficiary’s name or to order, drawee’s name and the drawer’s name and signature

Secondly: the cheque must be presented for payment during its validity period which is six or eight months from the date of issue as prescribed by laws of most countries in the world

Thirdly: rejecting any cheque which bears the sentence “guarantee cheque” or the sentence “guarantee cheque” and reference to the cheque number are written in any contract or document signed by the beneficiary and the drawer because in principle and as prescribed by laws of most countries in the world, the cheque is a payment instrument not guarantee instrument

Fourthly and finally: rejecting any partial payment of the cheque by the drawer as the partial payment of the cheque will make it lose its criminal protection and turn it into an ordinary civil payment document as prescribed by laws of most countries in the world