Legal Case Summary

Case Details
Case ID 32137bb1-6c73-4151-8b12-4fd98cee9766
Body View case body.
Case Number Writ Petition No. 10707 of 2012
Decision Date May 16, 2013
Hearing Date
Decision The Lahore High Court concluded that the jurisdiction to handle cases related to the dishonoring of cheques issued for loan repayments lies solely with the Banking Court as per the Financial Institutions (Recovery of Finances) Ordinance, 2001. The court set aside the order of the Ex-Officio Justice of Peace, which had directed the police to register a case against the petitioner. The court emphasized that the Financial Institutions (Recovery of Finances) Ordinance clearly delineates the jurisdiction of banking courts and maintains that issues between financial institutions and their clients must be resolved under this specific law, not under the general provisions of the Pakistan Penal Code. Therefore, the High Court allowed the petition, reinforcing the principle that special laws prevail over general laws in cases of conflict.
Summary This case involves the interpretation of financial laws concerning the dishonoring of cheques issued for loan repayments. The Lahore High Court ruled that such matters fall under the jurisdiction of Banking Courts as stipulated in the Financial Institutions (Recovery of Finances) Ordinance, 2001. The court determined that the Ex-Officio Justice of Peace had overstepped its bounds by allowing a criminal case to be registered against the petitioner under the general provisions of the Penal Code. The ruling clarifies the legislative intent that financial institutions must seek remedies as per the specific provisions laid out in their governing laws. This case illustrates the importance of understanding the distinctions between special and general laws, particularly in financial disputes, and sets a precedent for future cases involving similar circumstances.
Court Lahore High Court
Entities Involved Not available
Judges MUHAMMAD QASIM KHAN, J
Lawyers Javed Iqbal Bhatti for Petitioner, Mubashir Latif Gill, Assistant Advocate-General with Muhammad Arif, ASI, Syed Wasim Haider for Respondent No. 3
Petitioners MUHAMMAD ASIF NAWAZ
Respondents 2 others, ADDITIONAL SESSIONS JUDGE JUSTICE OF PEACE MULTAN
Citations 2013 SLD 2081, 2013 PCRLJ 1
Other Citations Abid Mahmood Malik v. Station House Officer, Police Station Margalla and others 2013 CLD 508, Muhammad Iqbal v. Station House Officer, Police Station Hajipura, Sialkot and 2 others PLD 2009 Lah. 541, Abdul Rauf Chaudhry and 2 others v. The State and 2 others 2013 CLD 738
Laws Involved Penal Code (XLV of 1860), Financial Institutions (Recovery of Finances) Ordinance (XLVI of 2001), Criminal Procedure Code (V of 1898), Constitution of Pakistan
Sections 489-F, 20(4), 22-A, Art.199