A VERY IMPORTANT JUDGMENT OF ALLAHABAD HIGH COURT ON CRIMINAL ACTION INITIATED BY BORROWERS AGAINST BANK OFFICIALS WHO TAKE SARFAESI ACTION FOR RECOVERY OF BANK DUES.
"IF DEFAULTERS ARE ALLOWED TO GIVE CRIMINAL COLOUR TO BANK'S STATUTORY RIGHT TO RECOVER THE LOAN, IT WOULD BE FATEL TO THE BANKING SYSTEM".
While dealing with 3 writ petitions filed by GM, AGM & BM of Union Bank of India, the Hon'ble High Court quashed the FIR lodged against them by the borrower on the basis of court's order under section 156(3) CrPC and held that order of Magistrate directing lodging of FIR against the Bank officials mechanically & without application of mind cannot be appreciated.
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The FIR against the petitioners (Bank officials) are set aside & quashed AND COST ASSESSED AT RS. 50,000/- BE PAID BY THE 4th RESPONDENT (BORROWER) TO THE BANK AT THE BRANCH WITHIN 6 WEEKS FROM THE DATE OF ORDER.