As the average cost of living is expanding at a pace, the urgent requirement of money is indeed increasing to cope up with daily financial needs which often lead to difficult legal situations caused by signing blank cheques to either banks or other financial institutions. Criminal Lawyers of Dubai has seen multiple cases wherein client issues blank cheques in order to secure the credit, allowing the beneficiary to fill in details like amount and date and at any given point in time. We understand the need for immediate cash to secure you from financial trouble; however, it is not advisable at the cost of issuing a blank cheque.
It has been agreed by courts of UAE in numerous precedents that if you deliver a blank cheque to any natural or legal person, it will be considered as offering an authorization to the receiver of the cheque to fill in other missing and relevant information in such cheque like amount, name of the beneficiary or the date of the cheque. Pertinently, a blank cheque will not be considered invalid, or its validity cannot be challenged by the issuer on the fact that the cheque is not filled in completely. This rule of law was established in plenty of Supreme Court Orders in Dubai such as Criminal Court of Cassation number 123 of the year 2006 issued on 13 May 2006 and on Criminal Court of Cassation number 324 of the year 2011.
The court in foregoing solemnly confirmed that the blank cheque without a doubt authorizes the beneficiary to fill the missing details. Further, the court will at all times, consider the fact that issuer empowered the beneficiary to write missing details in the cheque unless the opposite is proven by the issuer. Ergo, it is sincerely advised to all our readers in case they are applying for short-term credit or loan to ensure that the security cheque deposited should bear an amount and the authority is not offered to the bank.
Think before you sign!
In a nutshell, you must avoid any or all situations asking you to sign a blank cheque as it can be used against you at any point in time or even if you have left the country long ago. In situations where a client has left the country and has closed all his bank accounts, yet forgot to receive a blank cheque issued to one of the creditors which was later used against him to file an unnecessary criminal case against him. The major issued faced in cases of blank cheques is that it cannot be used as a defence of not paying as the law entitles the beneficiary to fill in details of the blank cheque. Henceforth, clients facing irrational and unjustified criminal cases for blank cheques issued ages ago should seek legal assistance immediately.
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