Recently, UAE residents have increasingly encountered unsecured bank cheques. One of the reasons for a bank's refusal to process a cheque is that the mobile phone that issued the cheque does not match.

In the UAE, the essential elements required for a cheque include the following: the word "cheque" written in the same language as the instrument; an unconditional order to pay a specified amount; the name of the drawee (the person obliged to make payment); the payee (the person receiving the payment); the place of payment; the date and location of the cheque's issuance; and the signature of the drawer are outlined in the Article 627 of the Federal Decree-Law No. 50 of 2022 Issuing the Commercial Transactions Law, which states,

“The following particulars shall be contained in the cheque:

1. The word cheque is written in the body of the instrument in the language in which the instrument is written.
2. Unconditional order of payment of specific amount of money.
3. Name of the person obliged to make payment (drawee)
4. The person to whom payment, or to whose order the payment should be made.
5. Place of payment.
6. Date and place of execution of the cheque.
7. Signature of the cheque executor (drawer).”

Furthermore, a person shall be sentenced to imprisonment for a period not less than six months and not more than two years and/or pay a fine of not less than 10 per cent of the value of the cheque, with the minimum amount of Dh5,000 and not exceeding the double of the value of a cheque for intentionally signing a cheque incorrectly. This is discussed under Article 675 of the UAE Commercial Transaction Law, which states,

“Everyone who commits either of the following actions shall be sentenced to serve prison for a period of not less than (6) six months and not more than (2) two years and/or pay a fine of not less than (10 per cent) of the cheque value, of minimum (5,000) five thousand Dirhams, and shall not exceed the double of the value of the cheque:

a. Instructs or requests the drawee, before the drawing date, to dishonour a cheque issued thereby in other than the cases set out in Articles (651) and (656) hereof.

b. Closes the account, withdraws the whole balance therein or knows of closing of the account before the issue of cheque, or before the presentment of the cheque to the drawee for drawing, or intentionally causes the freezing thereof.

c. Intentionally executes or signs the cheque in a way that prohibits honouring thereof.”

In addition, if an instrument (cheque) issued by a drawer to a payee is dishonoured on grounds of incorrect signature with malafide intent and is confirmed by the relevant authority in the UAE, such act by a drawer is considered a criminal act on grounds of breach of trust.

This is by Article 453 of the Federal Law by Decree No. (31) of 2021 Promulgating the Crimes and Penalties Law, which states, “A penalty of incarceration or a fine shall be imposed on anyone who embezzles, uses or dissipates funds, written instruments or any other movables, in such a manner as to cause harm to persons entitled thereto, whenever such funds, instruments or movables have been handed to him by way of trust, lease, mortgage, loan for use or proxy. In the application of this provision, any partner in joint property, any agent of necessity concerning the property of the concerned party and any person to whom an object is handed to be used for a specific matter for the benefit of its owner or another, shall be treated as a proxy.”

Thus, an incorrect signature on the cheque, different from the specimen signature registered with the drawee bank of the account holder who issued the cheque for withdrawal, may constitute a crime that is penalised in the UAE.

Under the provisions above, if you have received a cheque from the buyer of your car with an incorrect signature, you may initially contact the buyer of your car and request that he issue a cheque with his correct signature registered with his bank.

However, if the incorrect signature was made deliberately or with malicious intent by the individual who purchased your car, you may initiate legal action to recover the amount owed under the aforementioned provisions of the law. This may involve filing a complaint with the court of the competent jurisdiction in the UAE and initiating a civil and/or criminal lawsuit against the buyer of your car.