I want to file a suit in civil court for cancellation of cheque. Please Guide accordingly

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I want to file a suit in civil court for the cancellation of the cheque. Please Guide accordingly…?

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In Pakistan, filing a suit in a civil court for the cancellation of a cheque involves understanding the legal grounds and procedures as outlined in the Specific Relief Act, 1877 and the Civil Procedure Code (CPC).

  1. Grounds for Cancellation:
  • Under The Specific Relief Act, 1877, Section 39 allows any person, against whom a written instrument is void or voidable, to approach the court if they reasonably apprehend that such instrument may cause them serious injury if left outstanding.
  • This provision enables a party to seek the cancellation of a cheque if there is a legitimate fear that the cheque could be misused against them.
  1. Suit for Cancellation:
  • A suit for cancellation of a cheque is typically filed in a civil court. The person seeking the cancellation (the plaintiff) must demonstrate that the cheque is either void or voidable and that there is a reasonable apprehension of injury The Specific Relief Act, 1877, Section 39.
  • The plaint (the initial document filed in court) should clearly state the reasons for seeking cancellation, such as fraud, coercion, or lack of consideration The Specific Relief Act, 1877, Section 39.
  1. Consolidation of Suits:
  • In cases where a suit for recovery of the cheque amount and a suit for cancellation of the cheque are filed in different courts, the courts may consolidate the suits to avoid conflicting judgments Sh. Iqbal Hussain v. Anwar Hussain, 2005 YLR 181.
  • The High Court can direct that the suit for cancellation be transferred to the court where the recovery suit is pending, ensuring that both suits are heard together. This is to ensure that the matter is resolved comprehensively in a single forum MUHAMMAD ILYAS Versus MUHAMMAD SHAFIQUE RAMAY, 2007 YLR 278.
  1. Stay of Proceedings:
  • In some instances, a party may seek a stay of criminal proceedings related to the dishonored cheque, pending the outcome of the civil suit for cancellation Sardar MUHAMMAD ASHRAF KHAN Versus PROVINCE OF SINDH, 2017 YLR 288.
  • However, it is important to note that civil and criminal proceedings are generally independent, and a civil suit does not automatically stay criminal proceedings Tahir Mehmood v. Additional District and Sessions Judge, Vehari and others, 2017 YLR 1453.
  1. Court Fee:
  • The court fee for a suit seeking cancellation of a document is payable under Section 7(iv)(c) of the Court Fees Act, based on the value of the subject matter Saeeda Bano and 8 others v. Muhammad Sabir and 8 others, 1986 CLC 123.
  1. Specific Scenarios and Considerations:
  • Cheque Issued as Security: If the cheque was issued as security and there is a dispute over the accounts, the court may examine the circumstances to determine whether the cheque can be encashed.
  • Death of the Issuer: A suit for recovery based on a cheque cannot be filed against the legal heirs of the issuer if the issuer dies before the cheque is encashed, and the legal heirs have not signed the cheque to assume liability Muhammad Abaid Ullah v. Ateeq-ur-Rehman, 2015 CLC 641.

Consolidation of suits is at the discretion of the court, even if the suits are at different stages of adjudication. It aims to prevent conflicting judgment and promote efficient administration of justice. The court will transfer the suit pending before the Civil Judge to the court of Additional District Judge where recovery suit is pending Khalid Pervez Bhatti v. Mst. Madiha Rafiq, 2017 MLD 323.