Syed Hussein Al -Qassab
The Minister of Justice, Islamic Affairs and Endowments, Nawaf Al -Ma’wed, affirmed that the project of amending some provisions of the Trade Law addresses practical problems related to checks, indicating that Article 23 of the Law of Procedures states that the lack of sufficient balance applies for a period of three years, and is submitted to the Public Prosecution.
He added that the check itself has a legal period that extends for only six months, and after its expiry, the bank is not entitled to deal with the check, even if there is a later balance.
He explained that resorting in this case is to the court of implementation, as it is the competent authority to track the money of the account holder.
He pointed out that there is coordination that will take place between the relevant authorities, with the launch of an awareness campaign from the concerned authorities to explain the new procedures for the commercial and investment street, indicating that the necessary steps will be clarified to follow up on financial rights, in an integrated detailed framework that takes into account the interest of all parties.
For his part, the Minister of Industry and Trade Abdullah Fakhro valued the Shura Council’s initiative in proposing the draft law, thanks to the Finance and Economic Committee for its recommendation to approve it, stressing the Ministry’s full support for the draft law with all its amendments, indicating that it has a positive impact on commercial activity in the Kingdom.
He stressed that most companies in Bahrain depend on checks in their dealings, but banks often refuse to disburse the check in the event of insufficient balance, which causes direct harm to the beneficiary who may urgently need liquidity, so he is forced to resort to the judiciary, which takes a long time.
Fakhro explained that the draft law addresses this problem by obliging banks to pay the amount available in the account, and allow the beneficiary to claim the rest through the implementation court, considering the check an executive support.
He pointed out that one of the important aspects of the project is to prevent the practices currently prevailing, such as obligating some companies to the customer to sign checks on white as guarantee, which exposes him to legal risks, whether criminal or civil, considering that this amendment enhances transparency and reduces commercial disputes.
He indicated that one of the advantages of the amendments as well is to address the issue of freezing joint accounts at the death of one of the partners, which is the practice of disrupted companies’ business, stressing that the proposal gives the rest of the partners the right to dispose of the money through a request for the bank, with the freezing of the deceased’s share only.
Fakhro concluded by emphasizing that the responsibility of protecting the consumer in this context is limited to non -financial companies, while companies that practice financing activities under the umbrella of the Central Bank of Bahrain are subject to its direct supervision, explaining that the role of the ministry lies in receiving complaints and communicating with companies that violate any systems, within the framework of enhancing governance and ensuring the rights of consumers.
