LAHORE – The Lahore High Court has upheld a decision to register a case against a man for issuing a cheque from a frozen bank account, establishing an important legal principle.
Justice Syed Farhad Ali Shah dismissed a petition challenging a sessions court order directing the registration of a case against the man for issuing a cheque from a frozen account.
The sessions court had ordered the registration of a case against Shehbaz Nawaz, who challenged the decision before the Lahore High Court.
While dismissing his petition, the high court upheld the sessions court’s order.
The ruling establishes that issuing a cheque from an account where payment is not possible may, depending on the circumstances, amount to fraud and constitute a punishable offence rather than merely a financial dispute.
The court held that issuing a cheque from a bank account from which the amount cannot be paid falls within the ambit of fraud.
The decision is being viewed as an important legal precedent in cases involving bank accounts, cheque issuance and financial transactions.
