5 bounced cheques leave developer owing BD22,500

TDT | Manama

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Five bounced cheques have landed a real estate company and its owner with a BD22,500 court bill, tied to an unpaid land and equipment deal worth BD50,000.

The High Commercial Court found that the firm had failed to pay the full sum agreed in a contract for the transfer of a plot and machinery.

The defendants were ordered to cover the remaining amount, along with yearly interest of 4 per cent from the date the claim was filed, and to pay legal costs and court fees.

Lawyer Mohammed Al Mahdi, representing the seller, said his client had agreed to hand over the land and equipment for BD50,000. Part of the money arrived. The rest did not.

Balance

To settle the balance, the company owner — named as the second defendant — wrote five cheques on behalf of the company, totalling BD22,500.

When the seller presented them at the bank, all five were returned unpaid. That led to the legal action.

The court examined the documents and found a signed contract between the seller and both the second and third defendants.

It confirmed the transfer and the price. The signatures were not disputed.

Letters

The file also included two letters from the seller to the Jaafari Waqf Directorate.

One asked that the remaining lease term for the plot be passed to the second defendant. The other requested a new lease agreement in the second defendant’s name, following the transfer.

The court concluded that a deal had been struck and that the two defendants had not kept their side of it.