mistaken credit bank

Mistaken Credit to a Bank Account: Legal Position

Pakistan’s banking sector is experiencing a fast pace digital transformation, which includes inception of new digital banks as well as digitalization of the banking services, like Raast, Roshan Digital Accounts etc. Nevertheless, this digitalization sometimes causes technology mistakes / errors in the banking systems as well. One such issue, though to a little extent, is the matter of mistakenly credited amounts to the customers’ accounts, due to system glitches. And unluckily, it is rare that the customers, who are beneficiaries of such mistaken credits, ever bother to intimate the banks about it or return the mistakenly credited amounts. The recovery of such amounts is though legally possible, however, since it is civil cause action, falling within the jurisdiction of civil courts, therefore, it becomes cumbersome for the banks to recover such amounts, easily and speedily. Needless to mention that the subject recovery does not fall within the jurisdiction of the Banking Courts and hence, speedy trial / summary procedure trial is not available for this kind of recovery. In addition, it is also difficult in these cases to have the support of the law enforcement agencies, due to some legal framework’s problems.

Luckily, a learned Judge of the Lahore High Court Lahore has recently passed a remarkable judgement on the subject matter, which will support the banks, in such matters. The judgement is regarding a case, where a bank’s system mistakenly credited a significant amount to one of its customers, who utilized a major portion of the amount . The bank pursued the customer and he gave a cheque for the amount involved. The cheque was later bounced, due to insufficient funds in the account and the bank then lodged FIR against him under Section 489-F. He was arrested and his bail was refused by the lower Court, against which he approached the High Court.

The High Court observed that the amount received by customer was not meant to be utilized by him, but it was to be retained and preserved by him for return back to the bank. The Honourable Court further observed that the customer was supposed and required to inform the sender/bank regarding the error and make arrangements for its return to the owner/bank. Furthermore, the Honourable Court observed that as soon as the customer became in a position to exercise his control over the property, the property stood entrusted to him impliedly, but he instead of returning the same to its owner/bank, withdrew significant amount and embezzled the same, as such offence punishable under Section 406 of PPC was fully attracted against him.

This case will become a precedent that if a bank customer receives mistakenly credited amount in his account and utilizes it, then it will be an offence of Breach of Trust, under Section 406 of Pakistan Penal Code. The Judgement is reported as PLJ 2025 Cr. C 797 LHC.

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  • The Exorbitant Cost Of Numbness

    By Hamza Bio: The author is a student at LUMS from Quetta, Baluchistan, majoring in political science. Cobwebs clung to the corners. Old things lay strewn across the floor. Musty air permeated the room, heavy with a dense smell. And there lay Muntaha, old enough to shoulder a schoolbag, yet young enough to trust that the world outside would not betray her. A seven-year-old child assaulted, raped, and murdered. Was it an aberration, a crime so atrocious that it crossed the bounds of abomination—liable to be dismissed as the work of a depraved mind? Facts offer an utterly different story. Eighteen-month-old Aizal recently met the same fate. Mir Raza, a young IBA graduate and a thriving businessman with a promising life stretching before him, was robbed of his life; his post-mortem examination revealed traces of acid and marks of torture that his body bore. Different names. Different stories. Yet testifying to the same grim pattern that recurs persistently. And perhaps more distressing is our habituation to it: another story breaks, headlines saturate social media feeds, condolences arrive, vacuous promises follow, and eventually, the outrage subsides. Until it happens again. With each gruelling episode, our emotional responses are sapped. That which once transfixed us with horror now hardly unsettles us. The gravity does not diminish; we resign ourselves to the dismal reality. What’s even more disturbing is the gradual erosion of our capacity to acutely realise the weight of these atrocities. This phenomenon ought not to be labelled as apathy. Apathy is much simpler: it is the vacancy of feeling. What we are experiencing is something far more pernicious: a gradual distortion of our senses, recalibrating what we consider shocking. We are undergoing an unconscious normalisation and readjustment to realities that are far from normal. Accustomed to darkness, we watch the very conception of light wither away. We do not cease to care. We require more to feel the same empathy and gravitas that were once instantly evoked. The implications of this shifting baseline are dire. Now for a story to break through, it requires something more heart-rending. It must involve fire, a child, acid, or a lynching to pierce through the noise—although briefly. We have not become cruel; our threshold has changed, filtering out and grading horrors on a curve. And the worst part? We scarcely realise the higher standard that we establish. There is a peculiar cruelty that this readjustment entails. No one consents to feel less over a murdered child, an acid attack, or a sexual assault. It unfolds and creeps in us in increments: one story, one headline, one brutality, one brief sigh. Until the sum of it all is a society that can read about Aizal, Muntaha, and Mir Raza in a single sitting, with its emotional faculties completely exhausted. The prevailing emotion changes from fury to fatigue. What we are surrendering, with each successive case, is not compassion; it is accountability. Accountability when it matters the most, until the headlines fade away from our feeds, the case is buried in the docket, and the victim is swallowed by history—before another name appears to draw another sigh of grief. A society that, though unconsciously, decides to exist beside crimes instead of demanding a reckoning for the culpable is perpetually doomed to remain rife with them because the ability to feel, to question, and to compel accountability has been effectively degraded. The outcome of it all is not that we will turn a blind eye to the horrors; we will grieve—briefly, outrageously, sincerely, and uselessly. Our grief will remain precisely in the same fashion but will fail to prevent such abhorrent acts because the mechanism that might have translated outrage into tangible outcome has been rendered inoperative through the desensitising monotony of repetition. The result? A society that has stopped reacting meaningfully. Brief outcry coupled with a hollow response results in a late, defanged, or no outcome at all. The perpetrators, who may have been deterred by the consequences, now have less to dread. Thus, further crime is bred, and its miscreants emboldened. Desensitization is a distinct peril from the crimes that breed it in the first place. It consistently curtails the cost of crime for everyone still capable of inflicting it. When the very alarm that stirs our conscience has been paralysed, a subtle message is whispered that another child, another toddler, or another youth awaits the same fate as Muntaha, Aizal, or Mir Raza.  

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