Banking & Finance

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 Banking & Finance

What Is Dishonored Cheque?

A dishonored cheque can be defined as a cheque that cannot be cashed by the bank due to insufficient amount of money in the account to pay it. This means that, the amount written on the cheque exceeds the amount that is available in the account.

   Dishonor cheque

 489 -F (Pakistan Penal Code)

     Dishonestly issuing a cheque

Dishonor cheque


Section: 489-F.

Dishonestly issuing a cheque:
Whoever dishonestly issues a cheque towards repayment of a loan or fulfillment of an obligation which is dishonored on presentation, shall be punished with imprisonment which may extend to three years or with fine, or with both, unless he 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 honored and that the bank was at fault in not honoring the cheque.

Points to remember:


  1. Cheque issued by Someone .

  2. That Cheque Dishonored by Bank.

  3. That Cheque issued for payment of loan           or Fulfillment of an Obligation.

  4. This Cheque was issued Dishonestly.


 If a cheque is bounced from bank then your lawyer will send a legal notice to the accused person along with copy of dishonored slip through registered post. After 14 days with the help of your lawyer, you must register a case against the other party under sec 489-F.

Quashing of F.I.R.


F.I.R. Quashed

2005 SCMR 306

Quashing of F.I.R.
Cheque was dishonored and complainant laughed an F.I.R. against the accused. Accused raised plea that the disputed entire amount was paid but from different accounts. F.I.R. quashed by court

Cheque Fraud

Check fraud involves theft of a blank check from ones home, purse, or office, or removing and altering a check from someone’s.  Check fraud may also include something as simple as changing the amount on a valid check


Writing a Bad Cheque

Lot of people might not know is that writing a bad or dishonored check can also be subject to criminal penalties under certain circumstances.  For example, writing checks on a closed or nonexistent account or writing a check knowing that there are insufficient funds are punishable offenses under law, issuing a bad check carries with it civil penalties, as well as criminal sanctions.


Depending on the circumstances and the amount of money involved, courts may impose significant fines or even prison sentences, ranging from a few months to several years. 


Defenses to a Cheque Fraud Charge

Working with a qualified and experienced lawyer/attorney,if you are on right path, you may be able to assert several defenses if you are facing charges of cheque forgery or issuing a bad check.  Once your attorney is fully informed of all the facts of the case and has reviewed all evidence against you, he will advise you about the best way to proceed in your case, whether it be a settlement or trial.


There are many possible settlement and options in these types of cases. Also, law provides alternative channels to divert some cases out of the criminal justice system and allow defendants the opportunity to avoid a criminal conviction

It is important that you choose an experienced lawyer, who knows all the options for the best possible outcome of your case.


Cheque Fraud: Bounced and Dishonored Cheques, Law and Remedy in Pakistan

 Avoiding  Cheque Fraud & Exploring Possible Legal Remedy

Bounced and Dishonored Cheques which form part and parcel of cheque fraud is one of the fastest growing financial crimes in Pakistan.

There are some important types of cheque fraud:

  • cheques not written or authorized by legitimate account holder.

  • Forged – Stolen cheque not signed by account holder.

  • cheque properly issued by the account holder but the amount of cheque has been changed .

  • Dishonestly issuing  a  cheque. (Section 489F of Pakistan Penal Code)– Whoever dishonestly issues a cheque towards re-payment of a loan or fulfillment of an obligation which  is  dishonored  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 honored  and  that  the  bank was  at  fault  in  not honoring the cheque.- Cheques issued with the intent of defrauding the drawer when there are no funds in account or the cheque is itself forged.

In case you have been defrauded through a cheque you may go for several remedies available under law:

  • Civil Litigation in Courts

  • Criminal Litigation in Courts

  • In case of fraud Report to bank.

  • Right to Negotiate with Default parties.

  • Send Legal Notice through lawyer to Defaulter for Payment of Cheque

  • FIR, Registration of F.I.R U/S 489-F Pakistan Penal Code.

  • Effecting FIR by use of 22A/22B if required.

  • Effecting arrest and recovery

  • Proceeding in banking court

  • order 37 (in session court)


If you need any assistance which involves Financial Crime committed with respect to cheques we are here to help you. We assure maximum relief to you after assessing your case on merits and facts.

Cheque Fraud: Bounced and Dishonored Cheques, Law and Remedy in Pakistan, For any of these our law firm is here to help.

Each case has its own facts, you can lodge FIR against the signatory who issued the cheque and at the same time can also file a civil suit, there is no legal bar if criminal and civil proceedings continue simultaneously

Legal notice is very important before lodging F.I.R.


You can hire OUR services for legal notice to other party in different cases


Cheque Fraud:

Bounced and Dishonored Cheques, Law and Remedy in Pakistan.

For any of these, our law firm is here to help.

 Legal Representation

If you are on the right path but facing a criminal conviction .our Law firm can help you by different ways, we will fight hard to ensure the best possible results and to protect your interest and your future.  Call us for more information.


If anyone has a complaint or problem to any office in Pakistan and need to discuss for solution and legal remedy. Call for information and Legal Help

We are always ready to help you.

Legal Help

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+92 333 5210 481

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(02.00 pm to 07.00 pm  Pakistan time)

Office No# 3, 1st floor Royal inn Plaza

 F8 Markaz, Islamabad, Pakistan.

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