BAHRAIN Trends and Developments Contributed by: Sayed Mohsin Al Alawi, Mohamed Ali Shaban, Amna Al Janahi and Yasmeen Jawahery, Hassan Radhi & Associates
Hassan Radhi & Associates Office 91 and 92, 9th Floor, AlBaraka Tower (A) Building 372, Road 4611, Block 346 Bahrain Bay, Sea Front Manama PO Box 5366
Kingdom of Bahrain Tel: +973 17 535 252 Fax: +973 17 535 252
Email: Info@hassanradhi.com Web: www.hassanradhi.com
The Transformation of Cheque Enforcement in Bahrain: From Litigation to Direct Execution Introduction A decade ago, a dishonoured cheque in Bahrain often required the creditor to commence a full civil claim, obtain a judgment and then begin a separate enforcement process. Recovery could take months in straightforward cases, and years where proceedings were contested or delayed. Today, the position is materially different. Bahrain’s enforcement framework has moved away from a litiga - tion model and towards a document-driven execution system. The Execution Law in Civil and Commercial Matters, promulgated by Legislative Decree No (22) of 2021 (“Execution Law”), has extended the mechanics of enforcement by establishing a legislative gateway for expanding direct enforcement beyond tradition - ally recognised executory instruments. The Execution Law introduced a flexible framework that enables the legislature to confer direct enforceability on certain instruments by designating them with executory sta - tus. As a result, said executory status emerged as a significant legislative mechanism through which other laws may transform certain instruments from mere evidence of rights to instruments capable of immedi - ate execution without prior adjudication. This marks a significant shift in the treatment of com - mercial instruments, particularly cheques, which are now one of the clearest examples of this transforma - tion. Where a cheque is marked by the drawee bank as unpaid due to insufficient funds, or as partially
paid, it may constitute an executive deed capable of direct enforcement, subject to the applicable statutory requirements. This major reform created a paradigm shift in both the remedial and payment dimensions of commercial transactions at all levels. This article will explore the evolution of cheque enforcement in Bahrain and con - sider how the recent legal developments have trans - formed the recovery process for cheque holders, while assessing the practical implications for creditors, debtors and the wider business community. History of cheques in Bahrain Cheques have long played an important role in Bah - rain’s commercial life. Although a cheque is, in legal terms, a payment instrument directing the drawee bank to pay a specified amount, it has also commonly been used in practice as a form of debt acknowledge - ment, security and commercial assurance. Under the previous enforcement landscape, a dishon - oured cheque did not automatically allow the holder to proceed directly to execution. The usual route was to file a civil or commercial claim under the Civil and Commercial Procedures Law, obtain a judgment confirming the debt, and then open an execution file before the Execution Court. This created a two-stage process: first litigation, then enforcement. The litigation stage could involve written submissions, evidence exchange, expert appointments, procedur - al adjournments and court scheduling. In contested
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