*** ----> Bounced checks backfire | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Bounced checks backfire

TDT | Manama

The Daily Tribune – www.newsofbahrain.com


A Bahraini travel agency, whose name was not disclosed, has been ordered by the court to pay a sum of BD64,000 as compensation for bounced checks.

The agency had obtained credit facilities from an airline to purchase airline tickets but failed to make the required payments within the specified time frame.

Consequently, the airline sold the tickets and proceeded to file a civil lawsuit against the travel agency in order to recover the outstanding amount. The court ruled in favor of the airline, stating that the travel agency must pay the damages along with interest and legal fees. The case involved two defendants: the owner of the travel agency and an authorized signatory. 

Both defendants were found responsible for the debt, as it was determined that the authorised signatory issued checks from the agency’s account that were returned due to insufficient funds.

The court’s decision was based on the principle that the burden of proof lies with the creditor to establish the existence of the debt, while the debtor bears the responsibility of proving its payment.

In this particular case, the airline presented the bounced checks as evidence of the debt, while the defendants failed to attend the court proceedings or present any form of defense.