LAHORE (Muhammad Ashfaq) - The Lahore High Court has upheld a decision to register a case against a citizen who issued a cheque from a frozen bank account, setting an important legal principle regarding such financial transactions.
Justice Syed Farhad Ali Shah dismissed a petition filed by Shehbaz Nawaz challenging the sessions court’s order directing authorities to register a case against him for issuing a cheque from a frozen account.
The sessions court had ordered registration of the case after the cheque was issued from an account from which payment could not be made. Shehbaz Nawaz subsequently challenged the decision before the Lahore High Court.
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The Lahore High Court rejected his petition and upheld the sessions court’s decision.
According to the judgment, issuing a cheque from a bank account in circumstances where payment is not possible may, depending on the circumstances, go beyond an ordinary financial dispute and constitute fraud and a punishable offence.
The court observed that issuing a cheque from an account incapable of making the payment may fall within the ambit of fraud.
The ruling is being viewed as an important legal precedent in cases involving bank accounts, cheque issuance and financial transactions.