File a police complaint if a cheque is lost

Q) What is the remedy if a cheque to bearer is lost? What is the procedure and how can I stop the payment?

By K.k. Sarachandra Bose (Legal View)

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Published: Mon 22 Nov 2010, 9:50 PM

Last updated: Tue 15 Nov 2022, 10:52 AM

A) As per Article 625 of the Commercial Transaction Law of the UAE (i) If a cheque to bearer is lost or damaged, its holder may lodge a protest with the drawee for payment of its value, and the protest shall contain the number and amount of the cheque, name of its drawer and any other detail that assists in identifying it, as well as the circumstances pertaining to its loss or damage; however, if the provision of some of these details becomes difficult, the reasons for that must be mentioned and if the protester has no place of residence in the country, he shall designate a selected domicile therein. (ii) When the drawee receives the protest, it shall refrain from paying the value of the cheque to its holder, and shall set aside funds for payment of the cheque until it is decided upon. (iii) The drawee shall, at the expense of the protester, publish the number and amount of the lost or damaged cheque and the drawer’s name as well as the protester’s name and address, in a daily newspaper issued in the country in Arabic language; and any action taken in respect of the cheque after the date of publication shall be
null and void.

Therefore, as per procedures, you may file a police complaint with all the details of the missing cheque. The police complaint has to be filed in the relevant jurisdiction where the cheque is lost. After enquiry, the police will normally issue an order to the concerned bank to stop payment of the cheque. Only upon the receipt of such an order along with the protest, the bank will stop payment of the cheque.

Q) My wife is an equal shareholder with other three ladies (all Indians) and a UAE national in a LLC formed in Ajman. There are some disputes with one shareholder who is presently in India and the company is facing issues in taking decision on various matters. In case the shareholder in India is not cooperating to transfer her share or give power of attorney to act on her behalf what can be the alternative the other shareholders can proceed with in case of sale of the company, authorisations for banking facilities etc., which requires unanimous undertaking? It is possible that she may not return to the UAE.

A) If a shareholder abstains from performing his/her duties of the company such as abstaining from attending shareholders’ meeting intentionally or without informing the company and thereby cause financial loss to the company, other shareholders of the company may approach the court for compelling such shareholder to perform as per the laws or to liquidate the company.

Q) Are UAE Labour Law for end of service benefits applicable to JAFZA employees as well, or do we have a different set of labour laws for JAFZA? My question is specifically regarding the end of service benefit payments of 21 days for the first five years and 30 days for all the years retrospectively after 5 years 
of service.

A) JAFZA has its own rules and regulations but in case of dispute, the court will deal with the matter as per provisions of the UAE Labour Law.

Q) I have a Russian passport and a long term permit in Czech Republic. I bought a big property in the Palm Beach, but did not establish a company in Dubai. Our developing company which had built the apartment could help us. I need to travel to Dubai very often and I need one year visa. How can I manage it? Which documents are needed?

A) To reside in the UAE you require residency permit issued by the department concerned. Residency permits are normally issued to investors and employees. Freehold property owners may get residency permit to stay in the country for a maximum period of six months which may be renewed after exiting the country for a month.

Q) Could you please advise us how we can get the amount due from our clients against the projects which have been stopped due to non-compliance of clients? In spite of our repeated requests, some of our clients are not responding to pay our bills towards the completed works as per the contract. What are the procedures to approach the court of Law to address our grievances and to compensate our loss? Is there any time limit to approach the court?

A) You may appoint a lawyer and file case against the defaulters. The time limit to file case in commercial matters is 10 years.

K.K. Sarachandra Bose is a Partner/ Corporate, Commercial and Contract Lawyer at Dar Al Adalah Advocates and Legal Consultants. Readers may e-mail their questions to: or send them to (Legal View), Khaleej Times, Dubai P.O. Box 11243.

Compiled by Ahmed Shaaban

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