Transactions between the financial institution and the customer,

Section 489-F PPC.

-    Matter was governed by the Financial Institutions (Recovery of Finances) Ordinance, 2001, which was a complete code in respect of transactions between the financial institution and the customer, which were defined by S.2(a) & (c), while S.7 of the said Ordinance had provided the powers of the Banking Court---Subsection (4) of S.20 of the same Ordinance had provided the remedy for a financial institution where the cheque was dishonestly issued and the same was dishonoured because of insufficient balance in the account---Proviso of S.7 of the said Ordinance had clearly envisaged that any offence embodied in S.20 committed by the customer of the Bank would only be subjected by the above mandate of law by way of filing direct complaint, as defined in S.4(h), Cr.P.C. in the Banking Court having jurisdiction---Police, therefore, had no authority to book the accused by lodging the F.I.R. and taking cognizance in the matter on the basis of F.I.R. and assuming jurisdiction by the Magistrate was without lawful authority and cm-am non judice---

-    Financial Institutions (Recovery of Finances) Ordinance, 2001, being a special enactment had overriding effect on the ordinary law and the borrower or customer of the Bank could not be proceeded under the provisions of Pakistan Penal Code—Only remedy available to the Bank and Financial Institution was to invoke the provisions of S.20 of the Financial Institutions (Recovery of Finances) Ordinance, 2001, by filing a direct complaint in terms of Proviso of S.7 of the said Ordinance—Prosecution of accused under Ss.489-F & 420 P.P.C. on the basis of F.I.R. was abuse of process of the, court and without lawful authority---Impugned orders were consequently set aside and the proceedings pending in the court of Magistrate were quashed---Petition was allowed accordingly.
Sabir Ahmed    Versus     Nazeer Ahmed
2010 C L D 344
Karachi High Court, Sindh.