Criminal proceedings can be initiated by bank even after SARFAESI proceedings

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 ...