Cheque Bounce or Dishonour of Cheque

In Pakistan, the law for cheque bounce cases is outlined in Section 489-F of the Pakistan Penal Code: 

• Dishonestly issuing a cheque

  If a cheque is dishonored when presented and was issued to repay a loan or fulfill an obligation, the issuer can be punished with:
  • Imprisonment for up to 10 years, but not less than 7 years
  • A fine that is at least the amount of the dishonored cheque

• Exceptions

  The issuer can avoid punishment if they can prove that they made arrangements with their bank to ensure the cheque would be honored, and that the bank was at fault for not honoring it

• Conditions for prosecution

  The following conditions must be met for the provision to apply:
  • The cheque was issued with dishonest intent
  • The cheque was for the repayment of a loan or fulfillment of a financial obligation
  • The cheque was dishonored on presentation

To avoid cheque bounce, you can: 

• Count the number of cheque leaves in your cheque book when you receive it
• Keep your cheque book in a safe place, under lock and key
• Never sign a blank cheque
• Always fill in the date, the name of the receiver, and the amount before signing the cheque
• Cross your cheque whenever applicable
• Write the amount in both words and figures distinctly