Bounced Cheques in Oman: The Penalty and the Effect of Payment

Issuing a cheque without funds is a crime in Oman punished by the Penal Code, Royal Decree 7/2018, with imprisonment and a fine — but prosecution depends on the beneficiary’s complaint, payment before the case is referred to court ends it, and a waiver after judgment stops its execution. Said Ibrahim Ambusaidi Advocates (SIA), based in Al Khoudh, Muscat, handles cheque cases for both defence and recovery.

Which acts are punished as cheque offences?

Article 356 of the Penal Code defines the offence and sets the penalty at imprisonment from one month to two years and a fine from OMR 100 to 500. It covers: giving a cheque with no existing withdrawable balance, with a balance lower than the cheque’s value, or on a closed account; withdrawing all or part of the funds after giving the cheque so that the remainder does not cover it; instructing the bank not to pay without lawful cause; and drawing or signing the cheque in a way that prevents it from being cashed.

The law does not punish only the drawer. Article 357 punishes, with imprisonment from one month to one year and a fine from OMR 500 to 1,000 or either of them, whoever accepts a cheque — or causes another to accept it — knowing there are no funds to cover it, targeting the misuse of cheques as sham security instruments. Article 358 fines the drawee bank itself if it declares in bad faith that no balance exists or refuses payment without legitimate reason.

Does the case start automatically? What is the effect of payment?

No. Under Article 359, prosecution of cheque offences requires the victim’s complaint; the case is extinguished by payment before it is referred to the court, and execution of the judgment is suspended by waiver. This makes negotiating payment or settlement possible and effective at every stage: before the complaint, during the investigation, and even after judgment.

The complaint itself is governed by the Law of Criminal Procedure RD 97/99: under its Article 5, a complaint in complaint-dependent offences is not accepted after three months from the victim learning of the offence and its perpetrator, unless the law provides otherwise; and under Article 10 the complaint may be waived before final judgment — where complainants are several, the waiver takes effect only if made by all of them.

What remains for the beneficiary after the criminal case ends?

The end of the criminal case does not extinguish the right to the cheque’s value: the civil claim survives. A cheque is a commercial instrument evidencing the debt, and the beneficiary may use the payment-order procedure under the Law of Civil and Commercial Procedure RD 29/2002 where the right is established in writing, due, and of determined amount — a faster route than an ordinary lawsuit — followed by compulsory execution against the debtor’s assets under the supervision of the execution judge.

We always advise treating a bounced cheque on both tracks together: the criminal track as legitimate leverage towards settlement, and the civil track to actually collect the debt.

Key facts

• Giving a cheque without funds or on a closed account carries imprisonment from one month to two years and a fine from OMR 100 to 500 under Article 356 of the Penal Code RD 7/2018.
• The offence also covers withdrawing the funds after issue, unjustified stop-payment orders, and drawing the cheque so it cannot be cashed.
• Knowingly accepting an uncovered cheque is itself an offence under Article 357.
• Prosecution requires the victim’s complaint; payment before referral to court ends the case, and waiver suspends execution of the judgment, under Article 359.
• The complaint must be filed within three months of learning of the offence and its perpetrator, under Article 5 of the Law of Criminal Procedure RD 97/99.
• The criminal case ending does not cancel the debt: the civil claim, payment orders, and compulsory execution remain available.

When to involve a lawyer

If you are a drawer accused over a bounced cheque, timing is everything: an early settlement before the case reaches court ends the prosecution, and defences of payment or an expired complaint window can change the outcome. If you are the beneficiary, filing the complaint within its deadline and pairing it with a well-built civil recovery track is what turns a returned cheque into collected money.

At Said Ibrahim Ambusaidi Advocates (SIA) we handle cheque cases from both sides: defence before the Prosecution and the courts, drafting complaints and settlements, and recovering cheque amounts through payment orders and execution across Oman. The first consultation is free by phone or WhatsApp on +968 9706 3030. We are based in Al Khoudh, Seeb, Muscat, and work Sunday to Thursday, 9:00 to 13:00 and 14:00 to 17:00, in Arabic and English.

This article is general legal information, not legal advice.