This Constitutional petition was filed seeking the quashment of F.I.R. No. 12/2008, registered under Section 489-F of the Pakistan Penal Code (PPC) at Police Station Boat Basin, Karachi, concerning the dishonor of cheques. The core legal question was whether criminal proceedings under Section 489-F of the PPC are maintainable for the recovery of amounts due on dishonored cheques, given the specific provisions of the Financial Institutions (Recovery of Finances) Ordinance, 2001. During the proceedings, the complainant (respondent No. 3) conceded that they would pursue recovery through the Banking Court, acknowledging that criminal prosecution was unwarranted under Section 20(4) of the Financial Institutions (Recovery of Finances) Ordinance, 2001, and citing the precedent in Nizar Ali Fazwani v. M/s. Pak Golf Leasing Company. The Court held that the registration of the F.I.R. was contrary to the spirit of the law and the established judicial dictum. Consequently, the Court quashed the criminal proceedings, ruling that continuing the prosecution would serve no fruitful purpose when the appropriate remedy lies before the Banking Court.
' Through this Constitutional petition, petitioner has sought quashment of F.I.R. No, 12/2008, Police Station, Boat Basin, Clifton, Karachi, which has been lodged against him by the Recovery Officer of respondent No,3 for commission of offence under section 489-F , P.P.C.
2. As it appears from the parawise comments, submitted on behalf of respondent No,2, the Investigating Officer, after completion of investigation, has submitted Charge-sheet No,19 of 2008, dated 11-3-2008 before the concerned Court.
3. At the outset, learned counsel for respondent No,3, who are the complainant in the said crime, states that without conceding to the allegations of mala fide or ulterior motive, respondent No,3 concede that for the recovery of sums due in respect of dishonored cheques issued by the petitioner, they will follow remedy before the Banking Court, which is the appropriate remedy, and insofar as the proceedings arising out of Crime No,12 of 2008, Police Station, Boat Basin are concerned, they are not interested in pursuing the same being unwarranted by law in view of the clear language of section 20(4) of the Financial Institutions (Recovery of Finances) Ordinance, 2001, and a recent judgment of this Court dated 7-11-2008 in the case of Nizar Ali Fazwani and another v.
M/s. Pak Golf Leasing Company and another (Criminal Miscellaneous. No,76 of 2008).
4. Learned counsel for the petitioner, when enquired about the fate of the charge- sheet submitted before the concerned Court, stated that she is not aware about the proceedings in the said crime after submission of challan as the petitioner is seeking remedy before this Court for quashment of the F.I.R.
5. After careful perusal of the case record, we are of the opinion that registration of F.I.R, for the commission of offence under section 489-F, P.P.C, by the respondent No,3 is contrary to the spirit of above provision of law and dictum laid down in the above-referred judgment by a Division Bench of this Court and further respondent No,3 are conceding to the position that they intend to seek remedy before the Banking Court instead of following remedy of criminal prosecution of the petitioner due to dishonoured cheques.
6. In such circumstances, no fruitful purpose will be served if the proceedings arising out of Crime No,12 of 2008, Police Station, Boat Basin are allowed to continue before the concerned Court.
Accordingly, the said proceedings are quashed and this petition is disposed of accordingly along with the listed-application.