Post-dated cheques will continue to remain an accepted mode of payment in Qatar, with the Emir H H Sheikh Hamad bin Khalifa Al Thani issuing a new law (No. 7 of 2010) yesterday. The new law amends the Commercial Law No. 27 of 2006 bringing an end to the confusion prevailing over post-dated cheques. The amended law has been issued on the day when a grace period for enforcing the relevant provisions of the earlier law was supposed to expire. It puts the onus on banks for encashing chques before the date mentioned on it. According to the new law, Article 580 of the Commercical Law (No. 27 of 2006) has been replaced by the following: Cheques shall be encashed immediately on presentation and any statement contravening this shall be deemed null and void. If a date is mentioned in the cheque as issuing date, the banks may refuse to pay its value until the arrival of that date. If the bank made the encashment before that date it shall be held responsible for the harm that results from the act. The law is to be implemented and is to be published in the official gazette. Several articles of the Commercial Law (No. 27 of 2006) pertaining to cheques had been kept in abeyance and a three-year grace period was provided before enforcing those articles. That period ended yesterday. Legal circles were expecting a new law that made a post-dated cheque payable immediately on receipt irrespective of the date mentioned on the cheque. Contrary to speculations, the new amendment has made it clear that a post-dated cheque should not be encashed before the date mentioned on it and if any bank is doing that it will be held responsible for the harm that results from the act. The banking and business communities were quick to welcome the new amendment noting that it would save the economy from the chaos a ban on post-dated cheques could have created. Governor of the Qatar Central Bank (QCB) in a statement to the Qatar News Agency (QNA) said that with the new amendment, the status quo will prevail as far as cheques are concerned. The amendment reflected the keenness of the state to ensure the stability of the banking sector as well as the commercial transactions. He said the banks should not encash a cheque if it is presented before the date mentioned on it. The QCB had already issued a directive to all the banks on these lines, suspending an earlier notification implying the opposite. http://thepeninsulaqatar.com/Display_news.asp?section=Local_News&month=May2010&file=Local_News201005148261.xml

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