Bouncing of a cheque is a serious crime in Saudi Arabia. Issuing a cheque to someone without having enough balance in your bank account might take you under detention or impose heavy penalty on you.
If you are residing in the Kingdom of Saudi Arabia, you need to be well aware of all the rules and laws related to cheque bounces otherwise you could be charged with heavy fine or imprisonment.[irp]
The most important basic reason for the cheque to bounce is due to insufficient funds in the issuer’s bank account. Besides this, other facts include technical reasons like mismatched signatures or the sender is a defaulter.
Bouncing of a cheque is a criminal offense. In order to make you aware of the facts, we just tried to sort out some important rules related to bouncing cheque cases.
1-Criminal Court of Civil Court: If the cheque bounces back, the receiver can register a complaint against the respective issuer in the police station. The registered complaint then goes through the legal proceedings and then forwarded to the Criminal or civil court.
Both courts function separately. After the examination of the whole evidence by the criminal court, they may give the culprit two options in which one is to pay the money or go to jail.
2-What is the amount of fine or Jail Term? If a person is found defaulter for Bounced Cheque then he possibly is supposed to get imprisonment for about 3 Years and have to pay heavy fines which range up to 50,000 SAR.
However, if the same crime is done for the second time in 3 years, he will possibly be sentenced to imprisonment for 5 Years and a fine would be imposed of up to 1,00,000 SAR.
3-Already Completed the Jail term: If the certain person who is charged for a bounced cheque case has already completed his punishment of imprisonment, he needs to be released at once.
Although, if the accuser again files the case in the civil court, the concerned person needs to pay back the unpaid amount or face the punishment of imprisonment in jail. This way, the case won’t be in pending.
4-Who signed the Cheque? As a fact, in companies, all the partners are not answerable or held responsible in the cheque bounce case. The criminal liability is held by the individual concerned person who signed the cheque.
No matter if the Cheque is signed by the person is a manager or some other partner or high-level person. This type of case holds a different direction.
5-The person who signed the cheque left the company: If it is proved that issuer of the cheque company does not have enough funds to make a payment, the aggrieved party can possibly file a complaint against the person who signed sign the cheque. Even if he is a high level designated person or left the country or company.
After the court’s judgment, a request can be made to the concerned authority to include the name of the fraudster in Interpol’s wanted list. The Interpol in the Kingdom of Saudi Arabia is working very effectively and fulfills its responsibilities in a loyal manner.
According to the Commercial Papers Law, the issue of a cheque without having sufficient funds in account needs to face heavy imprisonment along with Fines. In a nutshell, everyone needs to be very careful about issuing or receiving a Cheque.