The Pakistan Penal Code, 1860, addresses the issue of dishonoured cheques, a crime that has become rampant. Consequently, the payee often files an FIR against the issuer. Legally and commonly, a bounced cheque is considered “financial murder”. Section 489-F PPC stipulates that issuing a cheque dishonestly, either for loan repayment or obligation fulfillment, constitutes an offence punishable by up to three years imprisonment and a discretionary fine. Notably, the maximum conviction remains three years, regardless of the cheque’s value, raising questions about the proportionality of punishment for substantial amounts.
In terms of cognisance, Magistrate’s courts handle these cases. However, in practice, habitual offenders exploit the system by issuing cheques to delay payment. This tactic, known as “cheque kiting”, allows wrongdoers to buy time. When payments are not made on time, complainants file FIRs, and accused individuals often secure bail, delaying proceedings. This prolongs the agony for the complainant. Importantly, cheque bounce offences are compoundable and can be settled at any stage. Perpetrators frequently compound with complainants through noble intermediaries, but this comes at a cost: complainants face financial losses from legal fees and trial-related distress.
To prevent such abuse, Section 489-F PPC requires amendment. The punishment should reflect the severity of the offence, and cases should be disposed of within a period of one month. This would ensure swift justice for victims of financial murder, sparing them unnecessary hardship.
Riaz Ali Panhwar
Hyderabad
