01 / ANALYSIS
Overview of the Case
A defendant who admits issuing a cheque may still obtain leave to defend where an affidavit raises a genuine dispute about consideration. The Lahore High Court restored the opportunity to contest a Rs 6.5 million recovery claim subject to security.
02 / ANALYSIS
Brief Facts
Muhammad Javed brought a summary suit under Order XXXVII CPC for recovery of Rs 6.5 million, claiming that a cheque issued by Abdul Sattar in payment for poultry supplied on 12 January 2023 had been dishonoured on 13 January 2023.
Abdul Sattar applied for leave to defend on affidavit. He acknowledged issuing the cheque but stated that it had been given as security for the transfer of 11 marlas of land to a relative and business partner of the plaintiff, rather than as payment for poultry.
The plaintiff filed no reply or counter-affidavit to the defendant’s application. By order dated 31 May 2025 the Additional District Judge, Wazirabad, refused leave to defend. Abdul Sattar challenged that refusal in Civil Revision No. 55386 of 2025.
03 / ANALYSIS
Questions of Law
- Does admitting issuance of a cheque by itself defeat an application for leave to defend?
- What is the consequence when the claimant does not rebut a specific affidavit explaining the cheque's purpose?
04 / ANALYSIS
The Court's Answers
Does admitting issuance of a cheque by itself defeat an application for leave to defend?
Answer. No. Admission of the instrument does not conclusively establish the underlying consideration. A factually particularised defence, supported by an affidavit and requiring evidence, can justify leave even where issuance is admitted.
“this is not an absolute rule of law”
What is the consequence when the claimant does not rebut a specific affidavit explaining the cheque's purpose?
Answer. The court must assess the uncontroverted factual defence and determine whether consideration is genuinely in issue. The High Court set aside the refusal and granted leave subject to a surety bond for the claimed sum within 30 days of producing the certified order.
“hence the same has remained unrebutted”
05 / ANALYSIS
Practical Relevance
Businesses routinely obtain cheques as guarantees or security in transactions that differ from the stated underlying obligation. Their recovery documents should expressly establish the consideration and the conditions for presentation.
In summary proceedings, an applicant’s supporting affidavit and the claimant’s counter-affidavit can be decisive. The judgment does not extinguish the claim: it requires the disputed transaction to be tried, subject here to security.