Bahrain Court Orders Company to Pay BD 2,500 Over Bounced Cheques

Manama: A Bahraini court has ordered a company and its authorised signatory to jointly pay BD 2,500 after several cheques issued to a businessman were returned unpaid due to a signature mismatch.

According to court records, the plaintiff filed a case against an individual partner and a commercial company, demanding payment after three cheques worth BD 1,000 each were rejected by the bank. The cheques were returned because the signature did not match the specimen signature registered with the bank.

The plaintiff told the court that the first defendant, acting as an authorised signatory on behalf of the company, had issued the cheques as part of a financial transaction. When the cheques bounced, she later issued a guarantee cheque worth BD 3,000, which was also dishonoured. The defendant subsequently paid BD 500 but failed to settle the remaining amount, prompting legal action.

During proceedings before the Minor Commercial Court, the plaintiff submitted documentary evidence, including copies of the cheques, correspondence and a criminal complaint. The first defendant denied liability, claimed the documents were forged and requested that the originals be produced.

The plaintiff’s lawyer later submitted the original cheques, which were examined by the court and found to carry the defendant’s genuine signature. The court also established that the defendant was the owner of the company and authorised to sign on its behalf.

In its ruling, the court held both defendants jointly liable to pay BD 2,500, along with legal interest at 0.5% per year until full settlement. The defendants were also ordered to cover court costs and attorney’s fees.

The court noted that the company failed to appear or contest the case and that no proof of payment or legal defence against the issued cheques had been presented.