Qazi FAISAL WAJID vs MUNIR ULLAH KHAN and others
The petitioner filed a petition under Section 561-A of the Code of Criminal Procedure 1898 for the quashment of an F.I.R. registered under Section 489-F of the Pakistan Penal Code 1860, relating to the dishonour of a cheque issued in connection with a property transaction. The core legal question was whether an F.I.R. under Section 489-F, P.P.C. can be quashed when the petitioner admits issuing the cheque as a guarantee for the fulfilment of an obligation, and whether civil and criminal proceedings can run simultaneously. The Peshawar High Court held that the petitioner prima facie fell within the ambit of Section 489-F as issuing a cheque as a guarantee constitutes the fulfilment of an obligation, and civil and monetary disputes do not bar criminal proceedings for issuing a bad cheque. The court laid down the principle that a cheque issued as a guarantee or security for fulfilling an obligation attracts the mischief of Section 489-F, P.P.C., if dishonoured, and investigation at an initial stage does not warrant quashment of an F.I.R.
- Can an F.I.R. under Section 489-F of the Pakistan Penal Code 1860 be quashed when the issuance of the disputed cheque is admitted?
- Does a cheque issued as a guarantee or security fall within the scope of fulfilment of an obligation under Section 489-F of the Pakistan Penal Code 1860?
- Can civil and criminal proceedings proceed side by side in the case of a dishonoured cheque?
- Does the pendency of a civil suit regarding property transfer bar criminal proceedings for the issuance of a fake or dishonoured cheque?
- Section 561-A, Code of Criminal Procedure 1898
- Section 489-F, Pakistan Penal Code 1860
' KHALID MEHMOOD, J.---Qazi Faisal Wajid petitioner has filed this petition under section 561-A, Cr.P.C. For quashment of F.I.R. No,482 dated 30-4-2012 registered under section 489-F, P.P.C. Police Station Mirpur.
2. Facts, as per contents of petition, are that petitioner has entered into an agreement with respondent No,1 being attorney of one Muzaffar Khan regarding sale of certain property and for satisfaction of payment of sale price the petitioner has issued Cheque No,16747409 amounting to Rs,41,737,500 of Faisal Bank Supply, Abbottabad which on presentation was dishonoured on account of insufficient balance.
3. Learned counsel for petitioner argued that instant F.I.R. Is based on mala fide and ulterior motives rather is the result of collusion of respondents Nos.1 to 5. However, petitioner and his counsel has offered that out of disputed amount Rs,2-1/2(sic.) will be paid within one month whereas the remaining amount will be paid to respondent No,1 within next two months.
4. On the other hand, learned counsel for State assisted by learned counsel for complainant opposed the contentions of petitioner and contended that it was the petitioner who entered into agreement with respondent No,1 and issued the disputed cheque, which on presentation was dishonoured on account of insufficient fund in the account. Learned counsel for respondent rejected the offer so advanced by the petitioner and his counsel at the bar as petitioner has dishonestly issued the cheque for huge amount knowing well that there was insufficient balance in his account.
5. Arguments heard and record perused.
6. The petitioner has entered into agreement regarding bargain of landed property with respondent No,1 attorney of one Muzaffar Khan and has dishonestly issued the cheque as security for the huge amount knowing that there is insufficient amount lying in his account. Petitioner has not denied the factum of issuance of impugned cheque and report of Bank Manager vide which impugned cheque was dishonoured. His stance was that the impugned cheque was issued only as a guarantee/security against the bargain struck between the parties. Though civil suit regarding the suit property is pending before the Civil Court regarding it's transfer. However, for issuing a fake cheque civil and criminal proceedings both can be proceeded side by side. Petitioner himself has admitted that cheque was issued as a guarantee regarding the transfer of suit property. Section 489-F, P.P.C. Reads as under:- "489-F. Dishonestly issuing a cheque.---Whoever dishonestly issues a cheque towards re- payment of a loan or fulfilment of an obligation which is dishonoured on presentation, shall be punishable with imprisonment which may extend to three years, or with fine, or with both, unless can establish, for which the burden of proof shall rest on him, that he had made arrangements with his bank to ensure that the cheque would be honoured and that the bank was at fault, in not honouring the cheque".
7. If cheque is dishonestly issued for re-payment of loan or fulfilment of obligation and the same is dishonoured, the offender will be liable for the said offence. Word "fulfilment of obligation" amounts a guarantee for certain commitment. Hence, case of petitioner prima facie comes within the ambit of section 489-F, P.P.C.
8. The above stated offer of petitioner and his counsel can be adjudged at the time of hearing of bail before arrest petition of petitioner. The investigation in the case is at the initial stage and no case for quashment of F.I.R. Has been made out.
9. This quashment petition being without substance is hereby dismissed.
Cited by 1 case
- Mrs. RUKHSANA AZIZ vs MUHAMMAD EMAD and another 2013 YLR 1798