Forged Cheques Backfire: Abu Dhabi Court Orders Dh486,000 Repayment

The Abu Dhabi Commercial Court of First Instance has ordered a man to repay Dh486,124 to a bank after finding that he had encashed nine forged cheques and received the funds without legal basis.

In addition to the repayment, the court awarded Dh30,000 in compensation, holding that the bank’s settlement of the forged cheques constituted an undue payment that resulted in unjust enrichment.

The case was initiated by the bank, which had sought more than Dh516,000 along with compensation for both financial and moral damages. The bank argued that the cheques had already been established as forged in a prior ruling and that it had reimbursed the original account holder.

A court-appointed expert confirmed that 10 cheques were forged, of which nine were encashed over the course of a year, amounting to Dh486,124. One cheque was excluded as it had not been presented for payment.

The defendant claimed he was unaware that the cheques were forged and attempted to bring a third party into the proceedings. The court dismissed both arguments, noting that he was the direct beneficiary of the funds.

Reaffirming that forged cheques carry no legal validity as commercial instruments, the court held that the bank was entitled to recover the amounts paid. It ordered the defendant to repay the sum with 3 per cent annual interest until full settlement, in addition to legal costs.

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