Understanding Cheque-Related Offences in Thailand

Even in the digital age, cheques remain a common method of payment in Thailand for individuals and businesses alike. However, issuing a cheque comes with strict legal responsibilities. Failure to maintain sufficient funds or issuing a cheque with dishonest intent can lead to both criminal and civil consequences, including fines or imprisonment.

Our service include:

Cheque offence assessment and guidance
Criminal and civil procedure support
Settlement and negotiation strategies
Court representation for cheque disputes
Compliance with cheque issuance laws
Protection of issuer and holder rights

Legal Obligations When Issuing Cheques

Thai law regulates cheque issuance under the Offence Arising from the Use of Cheque Act, B.E. 2497. A cheque becomes a legal liability instrument, and violations occur in situations such as:

Intentionally issuing a cheque without intending it to be honored.
Having insufficient funds in the account at the time the cheque is issued.
Issuing a cheque for an amount exceeding the available balance.
Directing the bank dishonestly to refuse payment.

When a dishonored cheque is presented to a bank, the issuer may face a fine up to THB 60,000, imprisonment for up to one year, or both. This establishes clear criminal liability for misuse or mismanagement of cheques.

Resolving Cheque Offences

Criminal Procedure Considerations

Under Section 7 of the Act, the criminal offense can be resolved if the drawer settles the cheque by paying the holder or bank within 30 days of receiving a formal refusal notice or after the court’s judgment. Prompt payment can therefore prevent escalation of legal consequences.

Civil Procedure Options

For cheques falling within the monetary jurisdiction of a single judge, the recipient may also pursue a civil claim for repayment. This civil action can proceed simultaneously with criminal proceedings and follows the Civil Procedure Code of Thailand, overseen by the court handling the criminal matter.

Legal Guidance and Resolution

Cases involving dishonored or fraudulent cheques are often complex, requiring careful analysis to determine whether they fall under criminal, civil, or both procedures. BASE Law Firm provides expert guidance for clients in these situations, including:

Assessing the nature of the cheque offense and applicable procedures
Advising on negotiation, mediation, or settlement opportunities
Representing clients in court proceedings when necessary
Ensuring full protection of legal rights throughout the process

Because cheque offenses under the Thai Act are compoundable, disputes can often be resolved amicably without prolonged litigation, while still recovering owed amounts or securing settlements.