SHOUKAT ALI vs STATION HOUSE OFFICER S — 2023 CLD 1536 LAHORE-HIGH-COURT-LAHORE

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SHOUKAT ALI VS STATION HOUSE OFFICER S. 20---Penal Code (XLV of 1860), S. 489-F---Dishonored cheque---Distinction---Provision of S. 20 of Financial Institutions (Recovery of Finances) Ordinance, 2001 deals with a cheque issued for securing repayment of finance to a Bank while S. 489-F, P.P.C. relates to a cheque albeit of a bank but issued between private parties. S. 2(m)---State Bank of Pakistan Act (XXXIII of 1956), S. 37---Negotiable Instruments Act (XXVI of 1881), S. 3(j)---Microfinance Bank and scheduled Bank---Comparison---Both scheduled banks and microfinance banks provide services of acceptance of deposit by their customers and in turn are bound to remit such deposits back to the depositors or any other person, as per the directions of the depositor---Distinctive feature of a microfinance bank is that the value of its banking services is limited to the maximum limit defined by State Bank of Pakistan, whereas no such limit is defined for scheduled Banks---Both schedule banks and microfinance banks provide services in terms of S. 3(j) of Negotiable Instruments Act, 1881---Microfinance Banks are modelled in a beneficial manner to provide support for and uplift of persons with less financial resources and are bound to operate in a manner to ensure some advantage to such persons. S. 3(2) & Preamble---Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001), S. 20---Penal Code (XLV of 1860), S. 489-F---Criminal Procedure Code (V of 1898), Ss. 22-A & 22-B---Registration of FIR---Microfinance institutions---Object, purpose and scope--- Banking Court, jurisdiction of--- Petitioner/accused was aggrieved of order passed by Ex-officio Justice of Peace directing registration of FIR against him for issuing a cheque which was dishonored on presentation---Plea raised by petitioner/accused was that provision of S. 489-F, P.P.C. was not applicable---Validity---Purpose and aim of establishment of microfinance institution was to support persons with meagre means of subsistence---No criminal proceedings against such customer for whose alleviation such bank was established was intended by Microfinance Institutions Ordinance, 2001---If a person who was poor and socially not well placed committed a crime envisaged in S. 489-F, P.P.C., and was not punished for the reason that the provision was inapplicable, this would tantamount to giving a carte blanche to the poor to commit such crime---Microfinance institutions cannot be termed as financial institutions within the contemplation of Financial Institutions (Recovery of Finances) Ordinance, 2001, to say that its matters can only be tried by Banking Court---Provisions of Criminal Procedure Code, 1898 were fully applicable and application filed under Ss. 22-A & 22-B, Cr.P.C. on behalf of complainant/microfinance bank was fully competent---High Court declined to interfere in the order passed by Ex-officio Justice of Peace--- Constitutional petition was dismissed, in circumstances. S. 3(2)--- Penal Code (XLV of 1860), S. 489-F---Dishonored cheque---Dominant object of S. 489-F, P.P.C. is not focused on repayment of finances or loans to a banking company or a financial institution---Thrust of S. 489-F, P.P.C. is aimed at securing interests of private party including even bank to whom cheques were issued dishonestly---Provision of S. 489-F, P.P.C. does not exclusively relate to financial institutions or banking companies so as to attract ouster contemplated by S. 3(2) of Microfinance Institutions Ordinance, 2001.

SHOUKAT ALI vs STATION HOUSE OFFICER S — 2023 CLD 1536 LAHORE-HIGH-COURT-LAHORE

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