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Monday, November 9, 2009

Dubai sets up committee to rule on real estate bounced cheques


source Business Intelligence Middle East

UAE. Dubai's Ruler Sheikh Mohammed bin Rashid al-Maktoum has issued a decree setting up a judicial committee tasked with looking into cases of bounced cheques in real estate transactions, reported the official news agency WAM.

"The committee will settle cases related to bounced cheques whether issued by the buyer to the developer or from tenants and beneficiaries of long term units under the provisions of law no 7 of 2006 regarding real estate registration in Dubai," WAM said.

The committee will be given wide ranging powers 'in order to discharge its duties properly," and its ruling will be binding, the report said.

The committee will include a chairman, to be selected by appeal court judges in Dubai Courts, and two members, the first is a Dubai primary court judge, and the second is a representative from the Dubai Land Department.

The committee’s jurisdictions include canceling a bounced cheque issued to a developer, if it was proved that the developer has no right to the amount, and obliging the issuer of the cheque to write another one to replace the disputed cheque.

It also includes referring the bounced cheque to the specialised legal authority to take legal action against the cheque issuer, if the developer has the right to the amount of the cheque. The committee may seek help from experts and specialists as necessary.

The fifth article of the decree stipulated that law enforcement authorities, including the police, should refer all cheque complaints under this decree to the committee.

The article prohibits the Public Prosecution and courts from carrying out any investigation into bounced cheques included in the decree or issuing any ruling in this regard before the case is looked into by the committee.

These bodies should also stop looking into any complaint or case related to these cheques, and must refer them to the committee

Bounced checques are treated as a criminal offence in the UAE and the issuer can land in jail.

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