Iranian Journal of Trade Studies

Iranian Journal of Trade Studies

Non- Confirmation of Sayyadi Checks by the Holder in the System and the Issuer's Difficulty in Obtaining a New Check Book: A Legal Critique of Proposed Solutions

Document Type : Research Paper

Authors
Mohsen Sadeghi 1
Mohammad Javad Hajbani 2
1 Associate Professor at University of Tehran
2 Faculty of Law and Political Sciences of University of Tehran
10.22034/ijts.2025.2048863.4084
Abstract
The introduction of a centralized check registration and tracking system in Iranian law, following amendments to the Check Act, has given rise to numerous legal questions and novel forms of litigation. One key issue is the obligation of the issuer to register checks in this system to preserve their authenticity as commercial documents, a requirement that is often the basis for lawsuits filed by holders against issuers. Current banking regulations generally require that a substantial portion of the issued checks be either settled or, at the very least, confirmed by holders within the system.
 In certain instances, holders, upon receiving the physical check, may decline—whether for justified or unjustified reasons—to confirm it in the system. This scenario gives rise to critical legal questions: Can an issuer pursue legal action against a holder to compel confirmation of a check? If such legal action is permissible, are there alternative remedies that could provide more efficient and practical outcomes than traditional court proceedings? Furthermore, do the existing regulatory frameworks allow for the adoption of such alternative solutions?
Using a qualitative methodology that combines library research with interviews conducted with judges and lawyers, this paper argues that these lawsuits are legally permissible and that current regulations provide scope for proposing alternatives as more efficient solutions. Divided into two sections, the study first identifies the challenges associated with this issue and then offers solutions, aiming to address the outlined questions and support the proposed hypotheses.
 
Keywords
New Checkbook, Sayyadi Check, Check Confirmation, Issuer, Holder, Judicial Solution, alternative solutions

Subjects

 
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  • Receive Date 24 December 2024
  • Revise Date 07 April 2025
  • Accept Date 03 May 2025