UAE legal Q&As: Can a Dubai company pursue a bounced cheque case in Sharjah?

One reader asks about a credit company's threats to lodge a court action in Sharjah 'because it's stricter', while a small hotel owner asks what can be done about the nightclub that has opened next door.

Q: A credit company is threatening to pursue a case against me in Sharjah regarding a bounced cheque if its payment terms are not met. It is well beyond what I can afford. Although the organisation is in Dubai and I live in Dubai, the company says it will pursue the case in Sharjah because it says the laws are stricter there and that 50 per cent of the principal amount is to be paid to avoid arrest, after which the court will hear the criminal case. Can the company pursue the case in Sharjah under these circumstances and, if yes, is it true that I would have to pay 50 per cent upfront before the case is even heard in court?

A: Firstly, the law in relation to bounced cheques is a federal one, so it’s the same across the UAE and is no stricter in Sharjah than anywhere else. The company, of course, has the right to lodge such a case against you if it is the case that a cheque you issued has bounced, but there is such a thing as a jurisdiction area, so if the cheque was issued in Dubai and deposited in Dubai then the case should be heard in that emirate. If they have filed the case in Sharjah, you need to provide evidence that the incident happened in Dubai and ask the court to dismiss the case because it is out of its jurisdiction. As for paying 50 per cent upfront, payment arrangements are at the court’s discretion and so it is not a standard procedure to make such a payment.

Q: I have been operating a non-alcohol hotel apartment business in Tecom, now Barsha Heights, Dubai since 2007. About six years ago, another hotel apartment, which faces our entrance in a small side-street, opened. Everything was fine until about eight months ago when it started a running a nightclub. The club is drastically affecting our business, as our main clientele are non-drinkers. We've had many families moving out since the club opened. Is there anything I can do to complain about the noise and alcohol at the nightclub and how it is affecting our business?

A: I would suggest you contact the authority that issues your licence and explain the circumstances of your business and the negative effects the new hotel is having. As for the noise and disturbance caused by the nightclub, it is your right to contact police and get the families living nearby to do likewise. Officers can have the hotel sign an undertaking to not repeat such noise and disturbance and, if they do, you can lodge a police case against them.

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