MAHMOOD AKHTAR KHAN vs THE STATE and 2 others
This petition was filed under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973, seeking the quashing of an F.I.R. registered under Section 489-F, Pakistan Penal Code 1860, following the dishonour of a cheque issued by the petitioner. The core legal question was whether the registration of an F.I.R. for the offence of dishonouring a cheque is barred by Section 20(4) of the Financial Institutions (Recovery of Finances) Ordinance, 2001, which governs recovery proceedings in Banking Courts. The Court dismissed the petition in limine, holding that the mere existence of a special law for financial recovery does not prohibit the registration of an F.I.R. for criminal liability under the Pakistan Penal Code. Relying on the Supreme Court's precedent in Industrial Development Bank of Pakistan v. Asim Fareed, the Court affirmed that statutory conditions regarding the taking of cognizance by a Banking Court do not imply a prohibition on the registration of an F.I.R. Furthermore, the Court held that factual disputes regarding mala fide intent require investigation and cannot be resolved through summary proceedings under Article 199.
- Does Section 20(4) of the Financial Institutions (Recovery of Finances) Ordinance 2001 prohibit the registration of an F.I.R. under Section 489-F of the Pakistan Penal Code 1860?
- Can an F.I.R. be quashed under Article 199 of the Constitution of Islamic Republic of Pakistan 1973 on the ground that an alternate remedy exists under the Financial Institutions (Recovery of Finances) Ordinance 2001?
- Does a statutory condition restricting the taking of cognizance by a court imply a prohibition on the registration of an F.I.R. by the police?
- Section 489-F, Pakistan Penal Code 1860
- Section 20(4), Financial Institutions (Recovery of Finances) Ordinance 2001
- Article 189, Constitution of Islamic Republic of Pakistan 1973
- Article 199, Constitution of Islamic Republic of Pakistan 1973
ORDER
' IJAZ AHMAD CHAUDHRY, J.---Through this petition the petitioner seeks quashing of F.I.R. No,816 registered at Police Station Shalimar, Lahore on 23-10-2008 in respect of an offence under section 489-F, P.P.C. On the application of Mst. Nusrat Karim Maingal. The brief allegation against the petitioner is that he had issued a cheque amounting to Rs,35,00,000 which at its presentation before the concerned Bank had been bounced.
2. The learned counsel for the petitioner contends that under section 20(4) of the Financial Institution (Recovery of Finances) / Ordinance, 2001 the provisions of section 489-F, P.P.C. Are not/ applicable and this Court had already decided this matter in PLD 2001/ Lahore 533 in which proceedings before the learned trial Court had been quashed. The learned counsel further maintains that alternate remedy is available to the complainant by filing a petition under the above said law.
3. I have heard the learned counsel for the petitioner and perused the documents appended with this petition. It is not denied that the petitioner had issued the cheque, which on presentation before the Bank has been dishonoured. The contention of the learned counsel that in view of section 20(4) of the Financial Institution (Recovery of Finances) Ordinance, 2001 the case could not be registered under section 489-F, P.P.C. Has already been dealt with by the august Supreme Court in Industrial Development Bank of Pakistan v. Asim Fareed 2006 SCMR 483 whereby the order passed by this Court for quashing of the F.I.R. Merely on the ground that section 7(4) ibid prescribed that it was only a Banking Court which could take cognizance of the offence under the Ordinance and that also on a complaint in writing made by a person authorized by the Bank in that behalf and that in the circumstances, recording of an F.I.R. In the matter could not be sustained was set aside while holding that if the intention of the law-maker was to put any clog on the registration of an F.I.R. then the Legislature would have said so specifically and that if the law put a condition only on the taking of cognizance then it can never be read to imply prohibition on registration of F.I.Rs, As such the F.I.R. Cannot be quashed on the ground taken by the learned counsel for the petitioner as the dictum laid down by the august Supreme Court in view of Article 189 of the Constitution of Islamic Republic of Pakistan, 1973 is binding on all the subordinate authorities including this Court.
Moreover the question whether the petitioner had issued the cheque in question to the complainant with mala fide intention or not can be solved after conducting a thorough investigation which cannot be undertaken in present summary proceedings under Article 199 of the Constitution. At this stage the petitioner ought to satisfy the Investigation Officer of the criminal case and not this Court about the stated falsity of the allegations levelled in the F.I.R. This petition is, therefore, dismissed in limine.