Bounced cheques in Uganda: civil and criminal remedies
In brief
A cheque is a bill of exchange drawn on a banker payable on demand (Bills of Exchange Act, Cap. 68, s.72). When a cheque is dishonoured ('bounces'), the holder has a civil claim against the drawer for the amount — and because the sum is a liquidated demand, it can usually be pursued by the fast summary suit under Order 36 of the Civil Procedure Rules. Issuing a cheque the drawer knows will not be honoured may also, depending on the facts, amount to a criminal offence such as obtaining money or goods by false pretences under the Penal Code Act.
1. Governing law
Under the Bills of Exchange Act, Cap. 68, a cheque is a bill of exchange drawn on a banker payable on demand (s.72(1)), and the Act's provisions on bills apply to cheques. The drawer of a cheque engages that on due presentment it will be paid, and is liable to the holder if it is dishonoured; a holder who takes the cheque for value has the rights of a holder to sue on it. Because the amount of a dishonoured cheque is a debt or liquidated demand arising on a simple contract, the holder can ordinarily sue by way of the summary procedure on a specially endorsed plaint under Order 36 of the Civil Procedure Rules (see that note), in which the drawer must obtain leave to appear and defend. Separately from the civil claim, issuing a cheque that the drawer knows the account will not honour can, depending on the facts, constitute a criminal offence — for example obtaining money or goods by false pretences — under the Penal Code Act; whether a prosecution lies turns on proof of the dishonest intent and the other elements of the offence, so the criminal route is fact-specific. Statutory text verified against the consolidated Laws of Uganda as at 31 December 2023. Sourced from the Uganda Legal Information Institute (ulii.org).
2. Key statutes & rules
- Bills of Exchange Act, Cap. 68 — s.72 (a cheque is a bill of exchange drawn on a banker payable on demand; the Act's rules on bills apply to cheques); the drawer's engagement that the cheque will be paid and the holder's right to sue on dishonour.
- Civil Procedure Rules, Order XXXVI — the dishonoured-cheque amount is a liquidated demand that may be pursued by summary suit (see the Order 36 note).
- Penal Code Act — issuing a cheque known to be unpayable may, on the facts, amount to obtaining by false pretences (the criminal route is fact-specific; verify the precise charge).
3. Practical guidance
Re-present the cheque if appropriate and obtain the bank's dishonour advice (the reason the cheque bounced).
Send a written demand to the drawer for the cheque amount, keeping proof.
Sue on the cheque as a liquidated debt — usually by summary suit under Order 36, where the drawer must seek leave to defend.
After judgment, enforce by execution (Order 22) or a garnishee order (Order 23).
Consider the criminal angle only where the facts show the drawer never intended the cheque to be paid; take advice, as the offence (e.g. false pretences) is fact-specific.
This note is a practitioner orientation, not legal advice, and does not create an advocate–client relationship. Ugandan law changes and chapter and section numbers were revised in the 2023 Laws of Uganda. Verify every statute, rule and authority against the current primary source — and the specific facts of your matter — before filing or relying on it.