National Accountability Ordinance, 1999 Section 5(u)
“willful default” a person or a holder of public office is said to commit an offence of willful default under this Ordinance if he does not pay, or continues not to pay, or return or repay the amount due from him to any bank, financial institution, cooperative society, Government department or a statutory body or an authority established or controlled by a Government on the date that it became due as per agreement containing the obligation to pay, return or repay or according to the laws, rules, regulations, instructions, issued or notified by the State Bank of Pakistan, or the bank, financial institution, [cooperative] society, Government department statutory body or an authority established or controlled by a Government, as the case may be, and a thirty days notice has been given to such person or holder of public office: Provided that it is not willful default under this Ordinance if such person or holder of public office was unable to pay, return or repay the amount as aforesaid on account of any willful breach of agreement or obligation or failure to perform statutory duty on the part of any bank, financial institution, cooperative society or a Government department statutory body or an authority established or controlled by Government: Provided further that in the case of default concerning a bank or a financial institution a seven days notice has also been given to such person or holder of public office by the Governor, State Bank of Pakistan: Provided also that the aforesaid thirty days or seven days notice shall not apply to cases pending trial at the time of promulgation of the National Accountability Bureau (Amendment) Ordinance, 2001 (XXXV of 2001).
Explanation
Willful default occurs when a person or public office holder fails to repay a debt to a bank, financial institution, or government body by the due date, following a 30-day notice (or a 7-day notice from the SBP Governor for banks). It is not considered willful default if the failure to pay was caused by the institution's own breach of duty or agreement.