Stationery store ordered to repay BD18,000 for bounced checks

TDT | Manama

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A stationery store has been ordered by the Commercial Court to repay BD18,000 to a commercial company after five checks issued for payment of goods bounced due to insufficient funds.

The case involved a commercial company that had supplied goods worth BD18,000 to the stationery store. The store, in turn, issued five checks to the company for the full amount owed. However, these checks were returned unpaid. Lawyer Kaltham Al Kooheji, representing the commercial company, stated that the defendant, the stationery store and its owner, signed the checks, making them liable under Article 450 of the Commercial Code.

The company had notified the defendants about the outstanding payment but received no response, prompting them to file a lawsuit demanding the payment.

Liability

The court, in its ruling, found that the plaintiff, the commercial company, successfully proved the liability of the stationery store for the amount claimed. The court noted that the checks were issued from the store’s account and their total value matched the amount owed. The court also confirmed that the checks were returned unpaid, confirming the store’s obligation to pay.

The stationery store failed to appear before the court to contest the validity of the checks or provide evidence of payment. Based on this, the court concluded that the store was liable for the amount claimed and ordered them to pay the plaintiff. The court further ruled that the debt was commercial, as it was related to commercial documents under Article 4 of the Commercial Code.

Overdue

The court found that the payment of the checks was overdue, and therefore, the plaintiff was entitled to interest at a rate of 4% per annum from the date of each check’s maturity, as per Article 81/1 of the Commercial Code.

Ultimately, the court ordered both defendants, the stationery store and its owner, to jointly pay the plaintiff BD18,000, along with legal interest at a rate of 4% per annum from the date of each check’s maturity until full payment. The defendants were also ordered to pay court fees and BD50 for legal fees.