Dubai: The Dubai Civil Court of First Instance has ordered a man to pay Dh5.5 million, the value of a cheque he issued to a lender, after finding that he deliberately signed the cheque in a manner that prevented it from being cashed.The case stemmed from a business relationship between the two parties, during which the defendant requested a loan from the claimant. The claimant provided a total of Dh5.5 million in 11 instalments.When the claimant later demanded repayment, the defendant issued a cheque for the full amount, drawn on a local bank.However, when the cheque was presented for payment, the bank refused to cash it, stating that it had been written and signed in a manner that prevented payment.A criminal case was subsequently filed against the defendant, resulting in a fine and the confiscation of his cheque book. The judgment was later upheld on appeal and became final.Following the non-payment of the cheque, the claimant filed a civil lawsuit seeking recovery of the Dh5.5 million, legal interest and Dh500,000 in compensation for material and moral damages and loss of profits.The court said a cheque is fundamentally a payment instrument that serves as a substitute for cash and is intended to settle a due debt unless proven otherwise by the issuer.It noted that the defendant failed to appear before the court or provide any evidence that the debt had been paid or discharged. The court also relied on the final criminal conviction establishing that the defendant had deliberately signed the cheque in a manner that prevented it from being honoured.The court therefore ordered the defendant to pay the full value of the cheque.It also ordered the payment of legal interest at a rate of 5 per cent per year on the Dh5.5 million from the cheque due date until full settlement, in addition to court fees, expenses and Dh1,000 in legal fees.The court rejected the claimant's request for an additional Dh500,000 in compensation, ruling that the case file did not contain evidence of additional damage that would justify a separate compensation award.It said the proven harm related to the defendant's failure to pay the cheque amount, which had already been addressed through the order requiring payment of the original sum together with legal interest.
