In everyday business and property dealings, many people still rely on cash. It appears quick and convenient—hand over the money, shake hands, and walk away. Yet in law, this convenience often turns into complication. Cash leaves no verifiable record; when a dispute arises, it becomes one person’s word against another’s.
At Burhan Law Office, we frequently see clients who suffer losses because they made or received payments in cash. The absence of proof can weaken even the strongest claim. The safer approach is to use cheques or pay orders that create a clear and traceable banking record.
1. The Legal Risks of Cash Transactions
Cash payments seem harmless, but they create invisible legal problems.
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There is no documentary evidence that payment occurred.
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The other party can deny receiving the amount.
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There is no banking trail to verify the transaction.
In a courtroom, evidence is the foundation of justice. Without documentary support, even an honest buyer or seller may fail to prove their case. A missing receipt or acknowledgment can change the entire result of litigation.
2. Cheque — Your Documented Proof of Payment
A crossed or account-payee cheque records the transaction within the banking system. When the cheque is cleared, the payer and payee both appear in bank statements. This constitutes documentary evidence admissible under the Qanun-e-Shahadat Order 1984.
If a cheque is dishonoured, the law also provides a remedy under Section 489-F of the Pakistan Penal Code, allowing the aggrieved party to pursue criminal action. This legal deterrent promotes accountability and discourages fraud.
3. Pay Order — The Reliable Alternative
For larger or sensitive transactions, a pay order offers even greater certainty.
It is issued only after your bank deducts the amount from your account, meaning:
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It cannot bounce.
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It reflects a genuine intention to pay.
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It stands as neutral proof for both parties.
Because the money is already secured with the bank, a pay order almost eliminates the risk of denial or non-clearance.
4. Legal Protection in Sale-Purchase Deals
When dealing in property, vehicles, or goods:
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Always mention the cheque or pay-order number in the written agreement.
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Keep photocopies of the payment instrument and both parties’ CNICs.
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Retain a copy of the relevant bank statement or deposit slip.
These small habits provide strong evidence, prevent misunderstandings, and protect your rights if a disagreement reaches court.
5. Conclusion
Legal safety begins with proper documentation. Cash may feel convenient, but it offers no protection when challenged. Cheques and pay orders create the record that law demands and courts respect.
In Pakistan’s legal system, documentary evidence outweighs oral claims. For every business or property transaction, formalize payments through traceable banking channels.
At Burhan Law Office, we advise all clients to secure their dealings with clear documentation and reliable payment methods. A signed cheque today can save you from costly litigation tomorrow.
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