In today's global economy, financial transactions are often facilitated by what might seem as simple as a piece of paper. Cheques are a preferred method for conducting transactions by individuals and legal entities alike, due to their convenience and perceived security. However, it's important to understand that the use of cheques in Thailand is regulated by law, necessitating careful and moderate use.
While some jurisdictions may not penalize issuing a cheque without sufficient funds, Thailand treats such actions as a legal offense. The legal framework in Thailand categorizes offenses related to cheques into two parts: Criminal and Civil. Individuals found issuing a cheque without adequate funds may face legal consequences, which can include incarceration under either category..
In accordance with the Offence Arising from the Use of Cheque Act, B.E 2497, Section 4:
“Any person who issues a cheque to pay for a real and legally enforceable debt involving any of the following characteristics or acts shall be considered to have committed an offence and is liable to a fine not exceeding sixty thousand baht or to imprisonment for not more than one year, or both if the cheque is lawfully presented for payment and if the bank does not honor such cheque. The natures or acts are:
When the cheque is lawfully presented for payment if the bank refuses to pay
such cheque, the drawer is considered to commit an offence and shall be sentenced to a fine
not exceeding sixty thousand baht or imprisonment for not more than one year, or both.”
Section 7: In the event that an individual, identified as the offender in Section 4, remits payment for the cheque to the holder or to a banker within thirty days following the date the drawer is notified in writing by the holder of the banker's refusal to honor the cheque, or subsequent to the court's final judgment on the matter, such action will be considered as resolution of the offense in accordance with the Criminal Procedure Code of Thailand.
Section 8: Should the value of a single cheque or the cumulative total of multiple cheques not surpass the monetary threshold over which a single judge has jurisdiction in civil matters, the aggrieved party may pursue a civil claim for the cheque's payment as part of the criminal proceedings. This civil action will be conducted at the court handling the criminal case and will follow the procedures outlined in the Civil Procedure Code of Thailand.
Juslaws & Consult has successfully managed a multitude of cases involving bounced or fraudulent cheques in recent years. It is important to understand that, according to the Offense Arising from the Use of Cheques Act, B.E. 2497, such offenses are compoundable. This means parties have the opportunity to settle or mediate disputes, allowing for the potential recovery of aggregate damages or settlements arising from such incidents.
Our legal team possesses extensive experience in navigating the complexities of cheque-related issues in Thailand. We are well-equipped to advise and support you, determining whether your case falls under Civil or Criminal Procedure and guiding you through to its resolution. Should you require consultation or have any inquiries, we invite you to contact us.