Case Law Details
Associate Lumbers Private Limited Vs State By Central Bureau of Investigation (Karnataka High Court)
Karnataka High Court held that once an account is declared to be a fraud, bank can initiate criminal proceedings even after initiation of proceedings under SARFAESI Act and having a recovery certificate
Facts-
On account of the account becoming a non-performing asset, the Bank took several actions against the petitioner/ Company by initiating proceedings under the SARFAESI Act, through which a portion of the outstanding dues to the credit facility was recovered.
After initiation of proceedings under the SARFAESI Act and also getting in possession of the recovery certificate from, the hands of the competent fora, the Bank registered a complaint against the petitioner/Company on 15-02-2022 terming the account to be a fraud and alleging offences of cheating, criminal conspiracy by the petitioner and its Directors.
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