Two Cheques, Dh6.4 Million Debt: Dubai Court Orders Full Repayment

The Dubai Commercial Court has ordered a man to pay Dh6.4 million, representing the value of two cheques issued in favour of another man, together with legal interest of 5% per annum from August 1, 2023, until the amount is paid in full. The defendant was also ordered to cover court fees, expenses and legal costs.

 

The case was brought before the Dubai Commercial Court by a man seeking payment of Dh6.4 million, along with 5% legal interest from the date the debt became due until settlement.

 

According to the plaintiff, the defendant had issued two cheques in his favour. The first was for Dh2.2 million and the second for Dh4.2 million, with the cheques due for presentation in July and August 2023.

 

The plaintiff said the defendant asked him not to present the cheques on their respective due dates, relying on their friendship and repeatedly promising to settle the amounts. Trusting those assurances, the plaintiff did not immediately present the cheques for payment.

 

By the time the legal period for presenting the cheques had expired, the plaintiff attempted to cash them but was unable to do so because their due dates had passed. He subsequently sent the defendant a legal notice demanding payment of the outstanding amount. When the defendant failed to respond or settle the debt, the plaintiff filed the case.

 

The plaintiff submitted copies of the two cheques, their return statements, the legal notice and evidence that the defendant had been duly notified. The defendant, despite being legally served, did not attend the court hearings or submit evidence disputing the claim.

 

The court held that a cheque constitutes evidence of an underlying due debt and noted that the defendant had failed to provide proof that the amount had been paid or that the basis for issuing the cheques had ceased to exist.

 

In the absence of evidence to the contrary, the court found that the presumption of the outstanding debt remained valid.

 

The court therefore concluded that the defendant was liable for the full value of the two cheques, amounting to Dh6.4 million. It ordered him to pay the amount, together with legal interest of 5% per annum from August 1, 2023 — the maturity date of the second and final cheque — until full payment.

 

The defendant was also ordered to pay the court fees, expenses and legal costs.

 

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