UAE Court rejects creditor appeal over Dh3.7 million cheque claim

The decision upholds a key legal precedent in commercial law

Last updated: August 27, 2025 | 11:44

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UAE Court rejects creditor appeal over Dh3.7 million cheque claim

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Abu Dhabi: The UAE Federal Supreme Court has rejected an appeal by a creditor seeking Dh3.7 million, ruling that cheques are self-executing instruments that must be enforced directly rather than through payment order procedures. The decision upholds a key legal precedent in commercial law.

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The case dates to December 2018, when the creditor filed a claim against a company and its director over a cheque. Initially, the Ajman Civil Court issued a July 2024 order requiring the defendants to pay the amount, plus 5% legal interest and attorney fees.

The defendants appealed, arguing that payment orders do not apply to cheques, which are legally recognised as enforceable instruments. The Ajman Court of Appeal agreed, cancelling the initial order in January 2025. The Federal Supreme Court upheld Ajman Court’s ruling, noting that cheques returned due to insufficient funds, frozen accounts, or closed accounts carry the same legal effect as those returned for lack of balance.

Dr. Alaa Nasr, the defendants’ legal representative, emphasised that cheques and payment orders differ fundamentally in legal nature, underscoring the primacy of direct enforcement.

Khitam Al AmirChief News Editor

With over 30 years of journalistic experience spanning from Jordan to the UAE, Khitam has spent the past 22 years reporting on national and regional news from Dubai, with a strong focus on the UAE, GCC and broader Arab affairs. As Chief News Editor, she brings extensive expertise in delivering breaking and engaging news to readers. Beginning her tenure as a translator, she advanced through roles as Senior Translator and Chief Translator before transitioning to editorial positions, culminating in her current leadership role. Her responsibilities encompass monitoring breaking news across the UAE and the broader Arab region, ensuring timely and accurate dissemination to the public. Born into a family of journalists, Khitam's passion for news was ignited early in life. A defining moment in her youth occurred in September 1985 when she had the opportunity to converse with the late British Prime Minister Margaret Thatcher during her visit to a Palestinian refugee camp north of Amman. During this encounter, Khitam shared her family's experiences of displacement from their home in Palestine and their subsequent refuge in Jordan. This poignant interaction not only deepened her understanding of geopolitical issues but also solidified her commitment to pursuing a career in journalism, aiming to shed light on the stories of those affected by regional conflicts. Khitam’s commitment to accurate and timely reporting drives her to seek out news that interests readers, making her a trusted source for news on the UAE and the broader Gulf region.

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