Saalim Salam Ansari Advocate Supreme Court of Pakistan Monday suggested amendment to the law to remove ambiguity in the section 489-F of Pakistan Panel Code (PPC). Saalim was delivering a lecture on "Dishonoured Cheques - Civil and Criminal Remedies under Section 489-F PPC and Section 20 of Financial Institutions Ordinance (FIO) 2001," at PIIA Auditorium. The lecture was jointly organised by Pakistan Institute of Banking Studies (PIBS) and Corporate & Banking Lawyers Association (CBLA).
He said presently two different laws are in vogue for the dishonoured cheques. The difference(s) between section 20 sub-section (4), (5) and (6) of the Financial Institutions (Recovery Finances) Ordinance 2001 and section 489-F, Criminal Amendment Ordinance No LXXXV of 2002 are that the same offence in subsequent ordinance is not bailable, cognisable, punishable with imprisonment which may extend to three (3) years, while in the Financial Institutions (Recovery of Finances) Ordinance, 2001 the offence is non-cognizable, bailable and punishable with imprisonment which may be extended to one year, he added.
"The ambiguity relating to the section 489-F PPC can be removed and it will be proper that as in India chapter XVII and section(s) 138, 139, 140, 141, 142 were inserted in the Indian Negotiable Instrument Act, 1881 by promulgating "Banking/Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, (Act 66 of 1988)" or vide introduction of Chapter XVII of the Indian Instrument Negotiable Act, 1881, which provides filing of criminal complaint before the Metropolitan Magistrate and a 15-day notice under section 138 is required by the complainant to make payment of dishonoured cheque(s)," Ansari suggested.
He said the proposed amendments are that in Pakistan proper modification(s) like-wise India in Negotiable Instruments Act, 1881 be made by inserting Chapter XVII and the Sessions Judge(s) be empowered to entertain the direct criminal complaint. The stale cheques as well as dishonoured cheques with remarks "present again," etc, will not be included in the class of dishonoured cheque(s) against which criminal remedy will be available, he maintained.
Further, he said, in both statutes the Financial Institutes (Recovery of Finances) Ordinance, 2001 and in the proposed amendment in Negotiable Instrument Act, 1881 punishment should be similar which is proposed to be imprisonment for one year and fine, should be determined not exceeding to the twice or double of the cheque amount, Ansari said.
He said section 138 of Indian Negotiable Instruments Act 1881 as inserted in 1988 provides the punishment with imprisonment for a term which may extend to one year, or with fine which may extend to twice of the amount of the cheque or both. "It also provides that the cheque should not be a "stale cheque" and the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque within 15 days of the receipt of information by him from the bank regarding the return of the cheque as unpaid," he added.
Further, the drawer of such cheque fails to make payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within 15 days of the receipt of the said notice, Ansari said. "The offence should by compoundable, non-cognisable and bailable under the proposed amendment(s) and criminal laws regarding dishonoured cheque(s) will replace the section 489-F PPC or amend the Section, 20 Sub Section (4), (5) and (6) of Financial Institution(s) (Recovery of Finance) Ordinance 2001, however offence of dishonoured cheque(s) relating to "finance" provided by the Financial Institution(s) or banks) will be proceeded before the banking courts and offences fall under Chapter XVII of Negotiable Instruments Act, 1881 will be proceeded before the Judicial Magistrate(s)", he concluded. Basheer Ahmed Khan President Corporate & Banking Lawyers Association, Sami Shafi former Executive Director State Bank of Pakistan, Mian Abdul Haq, Dr Abdul Razzaq and Musarrat Khan Treasurer, Karachi Bar Association were also present.
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