What Key Factors Should Be Considered When Checking Legal Status and Travel Bans Before in UAE

Introduction:

When preparing to travel from the UAE, it is important to ensure there are no legal obstacles, such as travel bans, that could restrict departure. In the UAE, various legal issues, including bounced cheques, unpaid debts, or ongoing legal disputes, can lead to travel bans. This article provides an overview of the key laws governing travel bans, particularly concerning debtors, bounced cheques, and the process for seeking or challenging a travel ban.

Legal Framework for Bounced Cheques

The legal process regarding bounced cheques is primarily governed by the UAE Commercial Transactions Law, codified in Federal Decree-Law No. 50 of 2022.

• Article 401 of this law mandates that a cheque must be backed by sufficient funds or credit. Failure to comply with this provision constitutes a criminal offence in the UAE.
• Article 402 outlines the penalties for issuing a bounced cheque, which may include fines and imprisonment for the drawer.
• Article 667 stipulates that if a cheque is returned with a notice of insufficient funds, the drawee can pursue legal action, making the cheque a writ of execution. This means the holder of the dishonoured cheque can initiate compulsory execution, following the guidelines outlined in the UAE Civil Procedures Law, encapsulated in Federal Decree-Law No. 42 of 2022.

Bounced Cheques and Legal Actions: Overview of UAE Law

In the UAE, issuing a cheque without sufficient funds is a serious offence regulated under Federal Decree-Law No. 50 of 2022 on the UAE Commercial Transactions Law. The legal process prompted by a bounced cheque can lead to consequences for the drawer (the person who issued the cheque), including legal action and the potential for a travel ban.

Key Provisions of the UAE Commercial Transactions Law:

• Article 401 mandates that a cheque must be funded by sufficient funds, and failure to comply constitutes a crime.
• Article 402 outlines penalties for bounced cheques, which may include fines or imprisonment.
• Article 667 states that if a cheque is dishonoured due to insufficient funds, it becomes a writ of execution. The drawee (the cheque recipient) can then file for execution against the drawer under the Civil Procedures Law, requesting full or partial recovery of the amount.

Travel Bans in Relation to Debts and Bounced Cheques

The UAE Civil Procedures Law (Federal Decree-Law No. 42 of 2022) outlines the procedures for imposing travel bans on individuals involved in legal disputes or debt cases. Specifically, when a debtor fails to meet their financial obligations, creditors can seek to impose a travel ban to prevent the debtor from leaving the country.

Conditions for Imposing a Travel Ban:

As per the provisions of Federal Decree-Law No. 42/2022, a travel ban can be sought under specific conditions:

• The debt must be at least AED 10,000 unless it pertains to alimony or work-related obligations.
• The debt must be known, payable, and not subject to conditions. In cases where the debt amount is not fixed, the court may estimate the debt temporarily.
• The creditor must provide evidence of the debt and may be required to post a guarantee to cover potential damages to the debtor if the travel ban is found to be unjust.

Procedure for Requesting a Travel Ban:

The following steps outline the process for seeking a travel ban against a debtor:

• The creditor submits an application to the competent judge, citing concerns that the debtor may flee the country.
• The creditor must provide written evidence supporting their claim. If the documents are insufficient, the court may investigate further.
• The court may order the debtor’s passport to be deposited with the court, preventing travel while the case is under review.
• If satisfied, the court can issue a travel ban order, which is then circulated to all UAE ports of exit.

Lifting or Challenging a Travel Ban:

Under Article 325 of Federal Decree-Law No. 42/2022, a travel ban can remain in place until the debtor’s obligations are fulfilled. However, the law provides various conditions for lifting or challenging the ban:

1. 1. The travel ban may be lifted if any of the conditions that justified the ban are no longer valid.
2. 2. The creditor may provide written consent to lift the ban.
3. 3. The debtor can offer a bank guarantee or surety accepted by the court.
4. 4. If the debtor deposits an amount equal to the debt at the court treasury, the ban can be lifted.
5. 5. The ban may be challenged if the creditor fails to file a debt action within 8 days or does not initiate the execution of a final judgment within 30 days.
6. 6. After 3 years of inactivity in the case, the ban may be lifted if the creditor does not pursue judgment execution.

Consequences of Failing to Comply with a Travel Ban

Failing to comply with a travel ban can result in additional penalties. If the debtor attempts to flee the country or violates the travel ban, law enforcement agencies will enforce the ban, preventing the debtor from leaving through any of the UAE’s exit points.

Conclusion:

It is essential to check for any pending legal issues or travel bans before travelling out of the UAE. Individuals involved in legal disputes, particularly those related to unpaid debts or bounced cheques, should ensure that no travel restrictions are in place. Seeking legal advice and monitoring the status of ongoing cases can help avoid complications and travel restrictions.

Dr. Hassan Elhais is a legal consultant in Dubai, specializing in the drafting of all statements of claim, memos and consultation on litigation of all manner.