DCC 268/2009

This case involved whether the time limit was up for litigation when endorsed cheques were returned by the bank. A key issue was whether the owner of the company or the investor in the company was liable for the debt. The impact of endorsement of the cheque was also considered.

Background Facts

The First Respondent requested the Court of First Instance of Dubai to issue a Writ of Debt No 64/2007 against the Second Respondent, the Appellant and the Third Respondent to pay him jointly 291,637 AED and interest from the maturity date until full payment. This claim was based on the fact that the First Defendant, who was authorized to sign cheques from the account of the institution owned by the Second Defendant - the Appellant, signed seven cheques for the Third Defendant with different maturity dates.

The Third Defendant endorsed the cheques to the plaintiff's office but they were returned by the bank. The defendants refused to pay the cheque amounts.

Proceedings:

Court of first instance - Decision dated 18/7/2007