A cheque is a kind of bill of exchange with certain peculiarities. In view of section 5, ibid, where the payee is a fictitious or non-existing person, it may be treated as payable to the bearer.

A “self-cheque” has neither been defined by the Pakistan Penal Code nor the Negotiable Instruments Act 1881 (the “NIA”). Essentially, it refers to a cheque where the drawer is also the payee.

Section 489-F PPC does not stipulate that the cheque must be in the name of a specific individual. It simply requires that the person drawing the cheque does so from his own account, and the purpose should be for loan repayment or fulfilling a legal obligation. If the cheque is made to “self” only, no offence is committed. Firstly, a person cannot dishonestly issue a cheque to pay money to himself, and secondly, a person cannot give a cheque for the payment of a loan or to fulfil an obligation that one has towards oneself.

When a cheque is addressed as payable to “self or bearer” (and the word “bearer” is not scored off), any person who qualifies as a “holder in due course” under section 9 of NIA can initiate legal action under section 489-F PPC, provided they satisfy the elements of the offence described in paragraph 9 above. An individual asserting the status of a holder in due course must also substantiate their claim if challenged. 17. Section 118 of the NIA outlines certain presumptions about negotiable instruments, but these do not extend to section 489-F PPC. The latter provision exclusively governs the prosecution of the offence.

While there are similarities between Pakistan‟s section 489-F PPC and section 138 of the Indian Act, they differ substantively. As adumbrated, the most crucial distinction is that the vital ingredient of the section 489-F PPC is the dishonest issuance of a cheque, a requirement that every holder of a cheque, including the bearer of a self-cheque, must establish.

Section 154 Cr.P.C. mandates the officer in charge of a police station to register an FIR when informed about the commission of a cognizable offence. It is a settled law that he cannot determine the veracity of the information/allegations at that stage.

Criminal Proceedings
68498/22
Tariq Mehmood Vs ASJ JOP etc
Mr. Justice Tariq Saleem Sheikh
15-12-2023
2023 LHC 6808