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As per case facts, the Petitioner bank faced a criminal complaint by the Respondent alleging conspiracy to cheat by misappropriating properties and falsely claiming secured creditor status under the SARFAESI
...Act based on forged mortgage documents. The bank had initiated recovery proceedings, leading to property auction, which is under appeal at DRAT. The present petition seeks to quash the Section 340 CrPC complaint. The question arose whether to quash criminal proceedings against the bank for alleged perjury and fraud, considering prior DRT rulings favoring the bank and the complaint's timing. Finally, the Court found the respondent's allegations an afterthought and improbable, noting no prior forgery claims before the DRT. The Court clarified that SARFAESI and RDDBFI Acts are complementary. Concluding that continuing the criminal proceedings would abuse the court's process, the Section 340 CrPC complaint and all consequential proceedings were quashed.
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