Dubai court orders man to repay Dh2.3m after altering cheque to avoid payment

The Dubai Civil Court of First Instance has ordered a man to pay Dh2,347,000 to another who had lent him the money, after it was proven that he deliberately altered a cheque to prevent it from being cashed.

The court also awarded Dh50,000 in compensation for the financial and emotional damage caused, Emarat Al Youm reported.

According to court documents, the claimant filed a lawsuit demanding repayment of the cheque amount of Dh2.347 million, along with legal interest, fees, expenses, and Dh600,000 in compensation.

He told the court that the defendant owed him the amount and had issued a cheque in his favour. When he went to cash it, the bank refused after discovering the numbers written on the cheque did not match the amount written in words, a deliberate act that made the cheque invalid.

The claimant reported the matter to police, and the defendant was referred to the criminal court, which convicted him of issuing a cheque in a manner that prevents it from being honoured. He was fined Dh234,746.

The claimant said he repeatedly asked for repayment but received nothing, prompting him to file a civil case. He argued that he suffered financial harm by being denied access to his money and emotional distress due to the delay in recovering his rights. He sought Dh600,000 in compensation.

The defendant’s lawyer argued that the case should be dismissed because it was not filed via a payment order, as stipulated by law. He also requested that the lawsuit be suspended until the criminal verdict was appealed. Alternatively, he asked for a financial expert to be appointed, claiming the cheque was a security instrument, not a payment instrument.

The claimant’s lawyer insisted that the cheque is a final instrument of payment under UAE law and that the defendant had provided no evidence of any commercial transaction or financial relationship to justify withholding payment.

The court stated that a cheque is presumed to represent a legitimate debt unless proven otherwise, and the defendant failed to provide any documents or contracts showing a commercial dispute or alternative reason for issuing the cheque. It found that altering the cheque to prevent it from being cashed did not absolve him of repaying the debt.

In its final ruling, the court ordered the defendant to pay the full amount of Dh2,347,000, plus interest at 5 per cent annually from the due date until payment, and Dh50,000 in compensation. He was also ordered to cover court fees, expenses, and legal costs.