Legal Question in Banking Law in Pakistan

Re: Cheque bounce law

in fact bouncing of the cheque can be under various circumstances and a procedural law is there for noting and protest, but for defrauding someone's interest by this comes under preview of criminal recourse under CrPC/ PPC.

Re: Cheque bounce law

In Pakistan the law relating cheques is governed by s.489F of the Pakistan Penal Code according to which if a cheque has been issued dishonestly and it bounces, the issuer is liable to be punished for three years imprisonment.

The section does not apply if the cheque is forged or there is a fault on part of the bank. The section has been strictly contrued and it might not be wrong to state that the courts have since assumed the role of recovery officers for the accused woud remain behind the bars till the payment was made to the complainant.

Having said that, it is also important to know that the courts are gradually moving towards leniency in that now the accused could be granted bail if it is shown to the court that there was some business dispute etc. between the parties due to which it was within the accused's mandate not to have made payment due under the cheque.

I hope that is of assistance.

Regards