No bar under the law for simultaneous proceeding both under the Negotiable Instrument Act, 1881 (NI Act) and under the SARFAESI Act, 2002 in respect of the same transaction and the question of enrichment in such circumstances does not arise – Madhusudan Garai Vs. State of West Bengal and Anr. – Calcutta High Court
Hon’ble Calcutta High Court held that a proceeding under section 138 of the N.I. Act is not a proceeding so called for realization of arrear amount or for recovery of money. Section 138 deals with punishment for dishonor of cheque for insufficiency of fund etc, whereas the object of a proceeding under the SARFAESI Act is to ensure that dues of secured creditors including banks finanical institutions are recovered from the default borrower without any obstruction or without intervention of courts or tribunals. Accordingly there is no bar under the law for simultaneous proceeding both under the N.I. Act and under the SARFAESI Act in respect of the same transaction and the question of enrichment in such circumstances does not arise at all.