Crux: The Supreme Court allowed the appeal by bank officials against a Magistrate's order under Section 156(3) CrPC directing registration of an FIR for alleged forgery and undervaluation of property in SARFAESI Act proceedings, quashing FIR No. 298/2011 (PS Bhelupur, Varanasi). The Court held that Magistrates must apply judicial mind to allegations before issuing such directions, rather than mechanically forwarding applications, especially where statutory remedies exist under SARFAESI and RDBFI Acts, and actions taken in good faith are protected under Section 32 of SARFAESI. (!) (!) (!) (!) (!) (!) (!) (!) [5000271120016][5000271120017][5000271120024][5000271120025][5000271120030][5000271120031]

To curb routine abuse of Section 156(3), applications must detail prior recourse to Sections 154(1) and 154(3) CrPC, be supported by an affidavit (making filers accountable for falsity), and Magistrates must verify veracity, exercising greater caution in commercial/financial disputes like SARFAESI matters.[5000271120027]

In revisions against Magistrate orders dismissing complaints (under Sections 200/202/203), affected parties are entitled to hearing per Section 401(2). (!) (!) (!) (!)

The borrower was condemned for filing multiple complaints post-default to pressure officials into one-time settlements without withdrawing cases, bypassing civil remedies. (!) [5000271120002][5000271120003][5000271120007][5000271120008][5000271120016][5000271120025]

Directions issued to circulate the judgment to High Courts/Sessions Judges/Magistrates for vigilant exercise of Section 156(3).[5000271120032]