Despite court-endorsed rulings
PESHAWAR
A customer of Allied Bank Limited (ABL) has accused the bank of repeatedly refusing to comply with binding orders of the Banking Mohtasib Pakistan directing it to refund Rs250,000 that was allegedly withdrawn fraudulently from his account through a forged cheque, despite the decisions having been upheld by higher authorities.
According to documents available with this correspondent, Umer Muhammad, a resident of Peshawar, filed a complaint with the Banking Mohtasib after Rs250,000 was allegedly withdrawn from his account in February 2021 through a cheque bearing forged signatures.
The complainant claimed that he had informed the bank during the Call-Back Confirmation (CBC) process that the cheque was bogus and had denied issuing or signing it. Despite his objections, the cheque was reportedly cleared through the National Institutional Facilitation Technologies (NIFT) system on February 23, 2021.
After examining the case, the Banking Mohtasib, in its order dated March 20, 2023, held ABL responsible for negligence and maladministration. The order directed the bank to immediately credit Rs250,000 to the complainant’s account and submit a compliance report within 45 days.
The Mohtasib observed that the bank had failed to flag the cheque as a “negative CBC” despite the customer’s explicit denial during the verification call. It further held that the bank neither advised the customer to immediately issue stop-payment instructions nor acted upon his request to cancel the cheque.
The order also concluded that the bank had violated the State Bank of Pakistan’s CPD Circular No. 2 dated July 27, 2015, relating to the Guidelines of Business Conduct for Banks.
Subsequently, the Banking Mohtasib, in a second order issued on April 30, 2026, reaffirmed its earlier findings and again directed the bank to comply with its decision.
According to the complainant, ABL challenged the Mohtasib’s decision before the President of Pakistan, who dismissed the representation.
He further claimed that the Islamabad High Court also upheld the Banking Mohtasib’s orders, leaving the bank with no legal grounds to withhold payment.
The complainant alleged that ABL’s continued refusal to implement the decisions, despite successive rulings by the Banking Mohtasib, the President and the Islamabad High Court, amounts to wilful disobedience of lawful orders.
He contended that the bank had yet to refund even the principal amount and continued to delay compliance on one pretext or another.
When contacted, Umer Muhammad said he was satisfied with the findings of the Banking Mohtasib but disappointed that, despite favourable decisions from multiple legal and quasi-judicial forums, the bank had not complied with the orders.
He urged the authorities concerned to ensure implementation of the clear rulings and provide him the relief granted under the law.
