Legal Question in Criminal Law in Pakistan

Bouncng of Agreement Guarantee cheque

Dear Sir,

Please let me know if there is a cheque which has been bounced but that cheque was not issued against some outstanding payment but as a guarantee.

Actually a company was sold to someone and there was a project on that company's platform worth of 1 million PKR so the buyer wanted to have a guarantee that because the company ownership is with the seller at the time of signing of this particular contract although a clause was added in the contract that the seller will transfer the ownership of company to buyer but buyer wanted to have a guarantee that he wants a guarantee so a 1 million PKR cheque was issued to the buyer but both the parties signed at the back side of the cheque that this is a guarantee cheque as per agreement signed. There was also difference in amont writeed figures and words which was unintentional. The buyer was suppose to coordinate with client to recover the money and it took more time than it was expected and written on the contract which was beyond control of seller so the buyer get the cheque bounced and without informing seller went for FIR with 489F.

do you think this is a 489F case?

Look forward to your prompt resposne.

Regards,

R


Asked on 11/22/08, 5:26 am

3 Answers from Attorneys
Shaukat Kanjan Kanjan Law Associates Islamabad

Re: Bouncng of Agreement Guarantee cheque

no. such FIR is void

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Answered on 11/23/08, 11:26 pm
Barrister SAJEEL SHERYAR SAJEEL MIRZA MANN & SHAH, Barristers, Advocates & Consultants

Re: Bouncng of Agreement Guarantee cheque

The guarantee cheque is nevertheless a cheque despite the fact it is given pursuant to an agreement and therefore amenable to the ambit of 489F.

Though the courts had been strict in early years, the trend is shifting towards leniency at least in the High Courts and above. My humble opinion is the courts nowadays do look into the nature of the transaction and the terms of the agreement pursuant to which the cheque was given, for grant of bail.

Regards

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Answered on 11/22/08, 6:36 am
Nasir Butt Nasir Law Associates

Re: Bouncng of Agreement Guarantee cheque

So far as difference in amount in figure and words is concerned, only words are taken into consideration under law.

As far as its issuance for the purpose of guarantee is concerned, as you stated it was specifically written on the back of the cheque �Guarantee�, therefore it comes out from the ambit of 489-F Pakistan Penal Code. There must be repayment of loan or obligation, which is absent in the instant case. You are likely to succeed in case, complaint is lodged against you, but due diligence is required.

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Answered on 11/22/08, 8:11 am


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