The cheque is a payment instrument payable on demand, according to Federal Decree-Law No. 50 of 2022 on Commercial Transactions. It creates an independent monetary obligation on the drawer. The refusal to honor it due to insufficient funds does not extinguish the obligation; rather, it gives rise to liability and grants the creditor the right to claim the principal amount, interest, and compensation.
The cheque is also considered written evidence under Federal Decree-Law No. 35 of 2022 on Evidence. A claim that it was issued as a guarantee is not accepted unless supported by equivalent or stronger written evidence. The dispute may also be resolved through decisive oath when proof becomes impossible.
The evidentiary value of the cheque in UAE law has undergone a significant development, particularly with the amendments to the Commercial Transactions Law (Federal Decree-Law No. 50 of 2022), which shifted from focusing on criminalization to strengthening the civil and payment function of the cheque.
Here are the key legal points regarding the evidentiary value of cheques in the UAE in 2026:
1-Cheque as an enforceable instrument (procedural evidentiary value):
-An enforceable instrument
-Allows direct execution without the need for a full court judgment
2-Mandatory partial payment:
The bank is required to partially honor the cheque if sufficient funds are available, rather than rejecting it entirely.
3-Evidentiary value of the cheque:
The cheque is considered strong written evidence of the underlying obligation.
4-Penalties for bounced cheques (2022–2026 amendments):
-Partial decriminalization
-Criminal liability remains only in limited cases
-Monetary fines have been introduced
5-Legal defenses regarding cheque validity:
-Errors or defects in the cheque details
-Date-related issues
-Presentation of the cheque during bank holidays
5-Expiry of civil claim (payment claim):
The civil claim expires one year from the date of presenting the cheque or from the expiry of the presentation period.
Note: Under Law No. 50 of 2022, the cheque is no longer a tool of criminal pressure but a strong civil payment instrument with enhanced legal force.
Conclusion:
The lawsuit has a strong legal basis, and the prevailing outcome is judgment in favor of the claimant for the value of the cheque, along with interest, compensation, and legal costs.
An enforceable instrument