The rise in disputes over bills of exchange confuses the Commercial Court in Casablanca

Special data revealed an increase in the number of files related to legal disputes regarding the maturity of bills of exchange in the Commercial Court in Casablanca. This is after recording the growing demand for the aforementioned payment method by companies in their check account transactions, due to the multiple legal problems associated with it, especially with regard to possible follow-ups regarding accepting the check as a guarantee.

The growing level of disputes related to bills of exchange raised questions about the possible causes and effects of this indicator on commercial business transactions, as this increase came in light of the economic and technical transformations witnessed in the markets since the outbreak of the Corona pandemic. This requires careful analysis to understand the roots of this problem and search for effective solutions.

Disagreements centered around the conditions and deadlines specified in commercial contracts, fluctuations in currency and commodity prices, as well as the impact of the pandemic, as direct reasons behind the development of bills of exchange issues in the courts. While the disputed amounts jumped to record levels, which harmed the interests of a large number of companies, especially small and medium-sized companies that fell victim to the sudden difficulty of major units.

Repercussions of the pandemic

The “Covid-19” pandemic represented a strong economic shock to Moroccan companies. This greatly affected business and financial flows, as health restrictions and closures caused many companies to falter and delay financial payments, which led to an increase in the number of disputes related to bills of exchange, after abandoning performance and guarantee solutions by checks, in light of the lack of liquidity in companies’ bank accounts. What makes this method lose its reliability in commercial transactions.

In this regard, Mohsen Asari, a lawyer specializing in commercial cases, explained that the most common problem associated with bills of exchange is delay in payment of appointments, as this delay arises as a result of various factors; The most important are bad economic conditions or commercial problems between the parties, followed by objection to payment, providing legitimate or illegitimate reasons for not accepting the bill of exchange; This increases the complexity of disputes and prolongs the settlement process.

Asari added, in a statement to Hespress, that forgery is the subject of a large number of dispute files over promissory notes before the courts, as the promissory note, like the check, is subject to forgery, whether by changing the amounts paid or by forging signatures. Which leads to the emergence of legal disputes over the validity of bills of exchange and outstanding debts.

The same lawyer stressed the continuing decline in the culture of arbitration among companies, as they still prefer to resort to the courts instead of benefiting from alternative means of resolving disputes. Such as commercial arbitration.

Commercial arbitration

The bill of exchange is an integral part of commercial papers, which are considered negotiable bonds representing a debt due at a specific date, as it is subject to the provisions of Articles 159 to 238 of the Code of Commerce. It is considered a document by which the “drawer” gives to another person called the “drawee” an order to pay, on a specific date, a specific amount to a “beneficiary” who may be the drawer himself.

Through this definition, Saeed Jabour, a commercial arbitrator and director of a collection and legal consultation office in Casablanca, explained in a statement to Hespress that a bill of exchange, unlike a check, which is considered easier in the collection process, is not due for payment immediately and is presented to the bank on the due date written on it and agreed upon. It is between the drawer and the beneficiary.

Jabour stressed that the law provides strong protection for check holders. This makes their use in commercial transactions safer compared to bills of exchange, which may be more susceptible to tampering and forgery.

The spokesman pointed out that the most important difference between the two securities remains the immediacy of maturity. This reinforces the importance of commercial arbitration in the event of any dispute arising during collection, in order to preserve the interests of the parties, stressing that commercial arbitration provides them with complete confidentiality, maintains the privacy of the dispute, and protects sensitive commercial information related to bills of exchange and other commercial relationships.

In the same context, he cautioned that the costs of commercial arbitration remain lower than their counterparts in traditional judicial procedures, as the parties can estimate and control them more and avoid any additional expenses when managing the legal dispute.