We live in a world where a mere piece of paper can buy anything. Cheques are commonly used by people or legal entities which deal with numerous transactions. Using checks may be more safe and convenient for some, however, using cheques is also governed by the law in Thailand and therefore must be used in moderation and care.
There are some countries where a bounced cheque or cheques which doesn’t have funds in them are not considered illegal, however, in Thailand, it is an offense against Thai Law. Offenses are divided into Criminal Part and Civil Part where the person who committed the act can either be incarcerated in either of the two.
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.”
As above mentioned, such offenses are subject to Thai Law. In order to identify whether such offence is under the Criminal Code of the Civil Code of Thailand you have to take notes of the following:
Section 7: If the offender under Section 4 makes payment of cheque to the holder or to a banker within thirty days from the date on which the drawer receives the written notice from the holder notifying that a banker refuses to pay such cheque or the obligation which the court passes the final judgment, it shall be deemed the offence is settled under the Criminal Procedure Code.
Section 8: If the amount of each cheque or the amount of several cheques altogether, does not exceed the amount, which a single judge is empowered to try and adjudicate in a civil case, the filing of a civil case to demand the payment of cheque may be included in the prosecution of the criminal case to the court trying the criminal case. The trial of the civil case shall be preceded in accordance with the provisions of the Civil Procedure Code.
Juslaws & Consult have handled numerous cases related to bounces cheques or fraudulent cheques over the past years. You must also take note that under the Offence Arising from the Use of Cheque Act, B.E 2497, such offenses are compoundable, meaning that you may settle or mediate and receive the aggregate damages or settlement from such issue.
Our legal team has years of experience when it comes to cheque issues in Thailand and we can definitely assist you and provide consultation to you whether your case will be under the Civil Procedure or the Criminal Procedure and assist you until your case has been completed and concluded. If you require consultation or have any questions please contact us.