CURRENT ACCOUNT INDIVISIBILITY: A COMPARATIVE ANALYSIS OF BAHRAINI AND GLOBAL LEGAL FRAMEWORKS

Abstract

The current account, a pivotal instrument in commercial law, streamlines debt settlements between parties, transcending the conventional debt-by-debt approach. Operative from the first debt entry until closure, it confronts challenges related to debt overlap and entanglement. This study centers on Bahrain's Trade Act No. 7 of 1987, specifically articles 337-349, which elucidate the principle of account indivisibility—a focal concern for banks and commercial institutions The complexity of the current account is addressed through a multifaceted examination. This research dissects core principles underpinning the current account, encompassing scholarly theories and jurisprudential insights from commercial law. The question of whether the current account may be fragmented is explored from legislative, doctrinal, and judicial perspectives. Bahrain's legislative stance within Chapter 9 of the Trade Code is contrasted with other legal systems, highlighting unique orientations and addressing potential gaps Payments serve as the lifeblood of the current account, embodying its operation and continuity. To tackle the principle of non-fragmentation, understanding the nature of these payments is imperative