Muhammad Nawaz vs State etc
This matter arises from a petition filed under Section 497 of the Code of Criminal Procedure 1898 seeking post-arrest bail in respect of FIR No. 993/2019 registered under Section 489-F of the Pakistan Penal Code 1860 at Police Station Gaggo, District Vehari, concerning the dishonouring of a cheque issued in connection with a business transaction for the purchase of rice. The core legal question is whether the petitioner is entitled to post-arrest bail when the offence does not fall within the prohibitory clause of Section 497, Cr.P.C. and involves disputed business transactions requiring further inquiry. The Lahore High Court allowed the petition, holding that since the offence carries a maximum punishment of three years and does not fall within the prohibitory clause, the grant of bail is the rule and should be favoured in the absence of exceptional circumstances. The court established that mere issuance of a cheque does not constitute an offence under Section 489-F PPC unless dishonesty or discharge of a loan or financial obligation is proved, and emphasized that the penal provision cannot be used as a recovery mechanism.
- Whether bail should be granted when an offence does not fall within the prohibitory clause of Section 497 of the Code of Criminal Procedure 1898?
- Does the mere issuance of a cheque constitute an offence under Section 489-F of the Pakistan Penal Code 1860 without proof of dishonesty or repayment of a loan?
- Can Section 489-F of the Pakistan Penal Code 1860 be utilized as a mechanism for the recovery of money?
- Section 497, Code of Criminal Procedure 1898
- Section 497(2), Code of Criminal Procedure 1898
- Section 489-F, Pakistan Penal Code 1860
- Order XXXVII, Code of Civil Procedure 1908
ORDER
Through this petition under Section 497, Cr.P.C., the petitioner Muhammad Nawa z seeks post-arrest bail in case FIR No. 993/2019, dated 16.12.2019, offence under Section 489-F , PPC, registered with the Police Station Gaggo, District V ehari.
2. As per narration of crime report got lodged by Shahbaz Khan complainant, the allegation against the petitioner is that he purchased rice from the complainant and for payment of price of rice he issued cheque in question in favour of the complainant, which was bounced when presented in the bank for encashment.
3. Heard and perused.
4. It divulges from record that as per version of the petitioner there was business transaction between the parties and he issued the cheque in question as guarantee. As per narration of crime report, it is also depicts that the petitioner purchased rice from the complainant and in lieu thereof issued the cheque in question. In the attending circumstances, the actual controversy between the parties would be resolved by the trial Court after recording the evidence. The offence with which the petitioner is charged is punishable with three years R.I. or with fine and it does not fall under the prohibitory clause of Section 497, Cr.P.C. Thus keeping in view the law laid down in the cases of Riaz Jafar Natiq v. Muhammad Nadeem Dar and others (2011 SCMR 1708 ), ordaining that where a case falls within the ambit of non-prohibitory clause the concession of granting bail must be favourably considered and should only be declined in exceptional cases. No exceptional circumstance has been pointed out by the complainant to restrain grant of bail.
5. It is also settled principle of law that mere issuance of cheque does not constitut e an offence under Section 489- F, PPC until and unless it proves that the same is issued dishonestly or for repayment of loan or for discharging any financial obligations. It may be observe d here that Section 489-F , PPC is not a mechanism for the recovery of amount. It is just a penal provision which carries punishment of three-years only. Ultimately the complainant has to file suit under Order XXXVII CPC for the recovery of his amount. In view of above, the case of the petitioner has become one of further inquiry falling under sub-section (2) of Section 497, Cr .P.C.
6. The petitioner is behind the bars since 11.1.2021 and his person is no more required for further investigation. No useful purpose would be served by keeping the petitioner behind the bars. Consequently , this petition is allowed and the petitioner is enlarged on bail subject to his furnishing bail bonds in the sum of Rs. 5,00,000/-(Rupees five lac) with one surety in the like amount to the satisfaction of the learned trial Court. Needless to mention that the observations made in the above order are tentative in nature and shall no influence the trial Court.