DCC 134/2012

This case involved a cheque which should have bounced but was paid because the bank made a mistake crediting an amount to the bank account. Key issues included whether the bank was liable for the mistake or could claim the amount paid in error.

Background

A bank filed suit No. 1043 of 2009 against the first and second Defendants requesting 10.850.000 AED and interest of 12% per annum from the date of the lawsuit until full payment on the basis that the Defendants had two bank accounts.

On 20- 6-2009, the first Defendant issued a cheque for 10,850,000 AED to the second Defendant. However, it bounced. Due to a temporary technical error in the bank's accounting system, the bank decided to do a Clearing Entity by depositing the cheque amount into the second Defendant's account despite the fact that the first Defendant's account had insufficient funds to cover it.