Cheque Outdated and Stale issues under Pakistani law

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Published at : October 19, 2021

No FIR can be registered for Stale cheque FIR order set a side.
s. 22-A & 22-B---Penal Code (XLV of 1860), S. 489-F---Negotiable Instruments Act (XXVI of 1881), S. 84---Ex-officio Justice of Peace, jurisdiction of---Dishonest issuance of the cheque ---Direction to register the case---Stale cheque ---Scope---Contention of the petitioner/accused was that ex-officio Justice of Peace had wrongly ordered to register the case against him as the respondent/complainant had presented the cheque -in-question after about one and half year---Validity---As provided under S. 489-F, P.P.C., dishonest issuance of cheque did not attract the offence in each and every case where the cheque was dishonored---Even absence of one element to constitute the offence under S. 489-F, P.P.C., would take the case out of its ambit---cheque or negotiable instrument presented after six months of its due date was generally termed as Stale and under the banking practice,the bank was not obliged to honour the same unless instructed by the account-holder---Criminal proceedings could not be initiated on the basis of a Stale cheque ---Even on the civil side, the Court could refuse to entertain certain claims based on Stale cheque , e.g. treating such suit as an ordinary one instead of a suit under summary procedure---Respondent presented the cheque -in-question to the concerned bank after about one-and-half year which was patently out of date---Respondent knew fully well that the cheque -in-question would not be encashed yet he presented the same merely to bring the case against the petitioner under S. 489-F, P.P.C., thus, such conduct of the respondent contrivedly malicious---Respondent did not approach the Court (of Ex-officio Justice of Peace) with clean hands and had concealed the material facts---Exposing the petitioner to investigative process and to face rigors of criminal prosecution was not a small measure---Reasonable and tangible material with evidential basis must existed to set the law into motion so as to bring about an indictment---Insertion of S. 22-A(6)(iii) of Cr.P.C. was not meant to necessarily allow every such application as Legislature would not have been used word 'may' in said section which (word) spoke of 'discretion' by application of mind---High Court set aside the impugned order passed by the Ex-officio Justice of Peace for the registration of case against the petitioner/accused---Constitutional petition was allowed, in circumstances.
2021 PCrLJ 1071 LAHORE-HIGH-COURT-LAHORE
Side Appellant : SAJID IRTAZA
Side Opponent : ADDITIONAL SESSIONS JUDGE/JUSTICE OF PEACE, LAHORE..PLJ 2021 Lahore High Court 199

SAJID IRTIZA
Versus
JUSTICE OF PEACE, LODHRAN and 2 others
Negotiable Instruments Act, 1881-- ----S. 84(1)(2)--Dishonoured of cheque--Time for encashment of cheque--Foundational elements to constitute offence under this 489-F are as under: (i) the cheque was duly issued, (ii) it was issued with dishonest intent, (iii) it was issued towards repayment of a loan or fulfillment of an obligation, and (iv) it was dishonoured on presentation. Absence of even one of these elements would take case out of ambit of Section 489-F PPC--A cheque presented for encashment before a bank, beyond period of six months of its due date is generally regarded as stale cheque--While looking for "usage of trade and of bankers". Cheque Outdated and Stale issues under Pakistani law
ChequeOutdatedStale