Abu Dhabi court orders man to repay AED50,000 after cheque returned for signature mismatch

The Abu Dhabi Commercial Court (First Instance) ruled that a young man must pay another man AED50,000, the value of a cheque that was returned by the bank due to a signature mismatch. The court noted that the defendant had submitted an electronic request acknowledging the validity of the plaintiff’s claim and asking for additional time to settle the amount. It considered this a judicial admission and accepted it as evidence.

According to the records, a young man filed a lawsuit against another, demanding that he pay AED50,000, legal interest at a rate of 12 per cent, and Dh5,000 in compensation for his failure to return the amount. He also requested that the defendant bear the court expenses. The plaintiff stated that he had given the defendant AED50,000 as a loan, and that the defendant had issued a cheque for the same amount as a guarantee of repayment. He added that the cheque was returned by the bank because the signature did not match, forcing him to file a complaint against the defendant, which resulted in a conviction.

The court explained in its reasoning that commercial papers are written instruments in forms specified by law, containing a right whose subject is a specific sum of money payable on demand or after a specified or determinable period. It added that such instruments are negotiable through recognised commercial methods and are widely accepted as a means of fulfilling obligations and as an alternative to cash.

The court pointed out that the defendant submitted an electronic request acknowledging the validity of the plaintiff’s claim and asking for additional time to settle the amount. It considered this a judicial admission and concluded that the plaintiff’s claim was valid, given the defendant’s failure to pay the cheque amount.

The court ruled that the defendant must pay AED50,000, plus legal interest at a rate of 3 per cent per annum until full payment, provided that the interest does not exceed the principal debt. It also ordered him to bear the court expenses while rejecting all other claims.