In my career many criminal cases has gone through my eyes in which surety cheques are issues but still they face proceeding under section 489-F PPC. The victim claim that cheque is issued not to fulfill any legal obligation nor its repayment of loan.
Still, they face Criminal cases in court for years and end up in prison. So for those persons who are business man, or they are solving any controversy relating to financial matters. If they are demanded to give surety cheque then they must adhere strictly to the following guideline.
What To Do While Issuing Surety Cheque
When giving a guaranteed check to someone, keep the following points in mind
A bail check given to someone may put you in a criminal case that is a non-bailable offense.
So when giving a check to anyone, please write For Surety on the back of the check as there is no criminal proceeding in the case of giving the check about the transaction.
The higher judiciary has declared its decision on page 118 of 2018 YLR Note 157 that FIR will not be registered if the check is written on the back of the check.
Check …. Stale Check if the bank deserves to slip by mistake.
However, there is no criminal action against the issuer of the check on the basis of stale as set out in the following decisions.
2017 LHC 2545, 2015 PCRLJ 1050, 2012 MLD 1551, 1994 MLD 271