Dishonour Cheques in Pakistan

If a bank returns a check to a person unpaid because the account doesn't have enough money to cover the check, or because the check exceeds the amount arranged to be paid from that account by an agreement with the bank, that person is guilty of an offense and can be punished by imprisonment for up to two years, or a fine of twice the amount of the check, or both.



The requirement for giving notice is mandatory. If a notice demanding payment is not served on the drawer within 30 days from the date of dishonour of the cheque, a complaint is not maintainable unless the complainant can show the Court that there was sufficient cause for not making a complaint within that period. Notice means a notice in writing. A postal acknowledgment with the accused's signature is proof that the notice was properly served on the addressee shown in the postal acknowledgment. When a notice is returned by the sender as unclaimed, the date of return will be the starting point for reckoning the 15-day period. However, this does not prejudice the right of the drawer of the cheque to show that he had no knowledge that the notice was brought to his address. The notice can be sent by telegram, fax, or letter, but it is preferable to send it by registered post, as this is clear evidence of service.



If a company commits an offence, any person who was in charge of and responsible for the company's business at the time the offence was committed shall be deemed guilty of the offence and liable to be prosecuted and punished If a person can prove that the offence was committed without his knowledge or that he took reasonable steps to prevent the commission of such offence, he shall not be liable to punishment. If a person is nominated as a Director of a company due to their position in the Central Government or State Government or a financial Corporation owned or controlled by the Central Government or State Government, they will not be held liable for prosecution. If a company commits an offence and it can be shown that the offence was committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary, or other officer of the company, then that person shall also be deemed to be guilty of that offence and shall be liable to be prosecuted and punished accordingly.



There is no limit to the number of times a cheque can be presented, and each time it is returned due to insufficient funds or similar reasons, the payee has the right to file a complaint. In business transactions, it is not uncommon for a cheque to be returned due to insufficient funds or similar reasons. However, the payee may choose to present the cheque again at a later date, in the hope that it will be honoured There can only be one offence committed for the dishonour of a cheque, and that offence is committed by the drawer immediately upon his failure to make payment within 15 days of receiving notice of the cheque's dishonour. Each time the cheque is presented and dishonoured, the payee has a new right to take action. Therefore, the payee can keep presenting the cheque until he exercises that right, as long as the cheque remains valid. A cause of action for failure to pay only arises if payment is not made after notice is given. If a cheque is presented again and dishonoured after notice has been given, no new cause of action will arise.



A stop payment order cannot cancel out the offence. If a stop payment order is given and notice of it is given to the payee or holder in due course, the drawer will still be liable. This will not change even if the drawer instructed the bank to stop payment before the cheque was presented for encashment. If a cheque is issued, it is presumed that the holder received the cheque for the purpose of discharging a debt or liability. Just because the drawer issues a notice to the drawee or to the bank for stoppage of payment, this will not preclude an action under the Act.


If you don't pay within 15 days of receiving the notice, the offense will be considered committed. You can be sued only after the 15 days from the date you received the notice have passed and you haven't paid. The court can't take action before the 15 days are up, even if you denied liability earlier. Even after denying liability, the accused can change their mind and avoid prosecution by making payment within 15 days of receiving the notice. The offense is only committed when the notice period expires. This means that the person who wrote the check cannot claim that they didn't know the check might not be honoured when it was presented

Birth Certificate

  • If the payee or holder of a check has a complaint, they must submit it in writing.
  • The payee cannot lodge a complaint after completion one month from the date on which the cause of action arose.
  • A complaint can be filed by the payee or holder in due course, through an attorney or agent.
  • A complaint has to be filed in writing along with the list of witnesses and the list of documents.


  • If you have a complaint, you can file it in the court that has jurisdiction over
  • The place where the check was drawn
  • The place where the check was presented for collection
  • The place where it was received after endorsement
  • The place where the check was dishonoured.
  • The offense will not be triable by any court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the first class.


You must file a complaint within one month of the date on which the cause of action arises. This means you have 45 days from the date the offender received notice to make payment.



If the magistrate believes there are grounds to proceed, they will summon the complainant for evidence and the documents required. The accused and witnesses will be issued a summons for their attendance, and the witnesses' evidence will be recorded. The accused will be told of the offence's particulars and asked if they plead guilty or have any defence to make. If the accused pleads guilty, they will be convicted by the magistrate. If they do not plead guilty, the magistrate will hear both the complainant and the accused and take all evidence into account before passing a verdict of conviction or acquittal.

Lahore Office

Main Boulevard Gulberg, Main Market, Lahore, Punjab 54000
Mr. Ahmed Burhan

Faisalabad Office

Burhan Center, 97-99, Gulistan Market Railway Road, Faislabad, Pakistan
Mr. Ahmed Burhan

UK Office

Associate Office (London)
Mr. Ahmed Burhan

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