Syed Hussein Al -Qassab
The Shura Council approved the report of the Financial and Economic Affairs Committee on a draft law to amend some provisions of the Trade Law issued by Decree Law No. (7) of 1987 AD, accompanying Decree No. (44) of 2024 AD, which includes the committee’s recommendation to agree to the draft law.
The decision of the committee, Sadiq Al Rahma, pointed out that the draft law aims to introduce amendments and create new texts to the third chapter related to the check contained in the fourth chapter of the Trade Law issued by Decree Law No. (7) of 1987 AD, to reduce the negatives revealed by the practical reality of dealing with the check, and the draft law also aims to contribute to achieving the smooth flow of checks and facilitating their circulation, in addition to preserving the right of the check holder or the beneficiary in the remainder of the value of the check.
The committee’s decision stressed that the draft law aims to activate the partial payment mechanism for checks in the event that the amount available in the account is at the time of disbursing the check less than the value of the check, which is a good thing in economic terms; Which gives the check more flexibility and strength in transactions by facilitating its disbursement, as it is the most prominent commercial papers in the Kingdom of Bahrain, without disturbing or detracting its value as a fulfillment tool.
The committee’s decision explained that the draft law adds an economic advantage in daily financial financial transactions, which is the process of recycling and moving money instead of keeping it in the bank account, which revives the economic movement, and gives greater confidence in the use of the check as a fulfillment tool, so the beneficiary enables a portion of the value of the check while maintaining his rights to recover the remaining value of the organized methods set by the law, which will contribute to the beneficiary’s inheritance. Or his reluctance to move a criminal lawsuit related to issuing a check without a balance in light of obtaining a portion of the value of the check at once, or in stages without resorting to the judiciary.
The committee’s decision emphasized that the idea of partial fulfillment of the check has emerged through the proposal by a law submitted by members of the Shura Council to amend Article (465) of the Trade Law issued by Decree Law No. (7) of 1987 AD, and the council approved its idea in the eighteenth session held on February 20, 2022 AD in the fourth ordinary session of the fifth legislative term, in order to remedy the legislative palaces in regulating the exchange of the check As one of the most prominent commercial papers in the Kingdom of Bahrain.
For his part, the First Vice President of the Shura Council, Jamal Fakhro, expressed a number of questions, wondering about the application of the partial payment system in the countries of the world, and is it a new action in the region as a result of the outbreak of the phenomenon of non -fulfillment of checks.
He also called for clarifying the period of the start of the implementation of the law, and showed inquiries about the mechanism of restoration of checks. He pointed to the necessity of community awareness by the Ministry of Industry and Trade on the new law and the date of its entry into force.
In turn, a member of the Shura Council, Abdullah Al -Nuaimi, pointed out the need to review the notes of the Bahrain Chamber of Commerce and Industry, especially with regard to the role of the Consumer Protection Department, indicating that the administration is not the entity to deal with checks issues.
He stressed the importance of building an integrated legislative system under the supervision of the Central Bank of Bahrain, calling for the appointment of a security official for this system in a way that enhances economic confidence, and reflects Bahrain’s financial position.
For his part, a member of the Shura Council, Ali Al -Aradi, praised the law guaranteed to consider the check tool, and not a means of guarantee, stressing that the rulings of the Court of Cassation have settled on this principle. He explained that the third article of the draft law indicates an upcoming decision from the Central Bank of Bahrain, to be issued in coordination with the relevant authorities to determine the stages of the application of partial loyalty.
