DOHA: Court cases involving cheques that are dishonoured by banks due to insufficient balance in the account of the issuer are on the rise.
Cheques are bouncing in such large numbers due to insufficient balance in the accounts of issuers that they are losing their value as a financial guarantee in business deals.
Bounced cheque cases are coming to courts by the hundreds each working day of the week, Al Sharq reported.
Last week, the preliminary court alone heard some 200 cases of bounced cheques on a single day, the daily said.
And this week, some 300 cases of bounced cheques have been heard by different courts.
Many people issue cheques without sufficient balance in their bank accounts. When a cheque is dishonoured by the bank, the person to whom it had been issued approaches the issuer and asks him for the sum involved.
When the issuer refuses to pay the said amount the person goes to the Capital Police and files a complaint. The complaint is referred to the Public Prosecution if the police are unable to resolve the matter. The Capital Police has a section dedicated exclusively to bounced cheques.
The prosecution eventually refers the matter to the courts.
One of the reasons there has been an alarming rise in instances of cheques bouncing is that people are doing business without enough experience and with the sole intention of making a quick buck.
The problem occurs not only between individuals but also between individuals and companies, the daily said.
“People just issue a cheque without thinking and without making sure they have enough balance in their bank account, as a form of guarantee in a business deal,” said the daily.
Banks and law-enforcement agencies have been raising public awareness against issuing of cheques without having a sufficient bank balance to help check rising numbers of court cases.
Still, it seems that many people are not aware of the importance of a cheque and the dangers of issuing a cheque without sufficient balance in their bank accounts, according to the daily.
Legal circles say that according to Law No. 11 of 2004, issuing a cheque that is dishonoured by the bank due to insufficient balance in the issuer’s account is a criminal offence.
The law prescribes a jail sentence ranging from three months to three years or a fine of QR3,000 to QR10,000, or both, for the issuer, depending on the severity of the crime.
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