Court emphasized the necessity of providing a hearing to affected parties before the execution of orders pertaining to the defreezing of accounts in criminal proceedings.

ORDER :

1. In this petition, petitioner seeks the following reliefs:

"a) To set aside the Order Dated 23.09.2024 passed by the Hon'ble 45th Additional Chief Judicial Magistrate, Bengaluru, in Crime No.473/2024 i.e Annexure C in terms of which the petitioner is directed to defreeze the current account bearing A/c No.923020051871662 M/s. Hussain Furniture maintained in the petitioner's Bank and transfer the same to the account of the respondent No.2.

b) To pass such other orders as may be deemed expedient in the circumstance of the case and in the interest of justice."

2. Learned counsel for the petitioner submits that the impugned order passed by the Trial Court, directing the petitioner-Bank to defreeze the amount belonging to the accused and to transfer the said amount to the Account of the second respondent, who also holds an Account in the petitioner-Bank, is without providing sufficient and reasonable opportunity to the petitioner and under identical circumstances, this Court has set aside the impugned order and remitted the matter back to the Trial Court for reconsideration of the application filed by respondent No.2 under Sections 451 and 457 of the Cr.P.C.

3. In an identical circumstance, this Court, in the case of Axis Bank Ltd. Vs. The State of Karnataka and another in Criminal Petition No. 6644/2025 disposed of on 02.06.2025, set aside the impugned order therein and remitted the matter back to the Trial Court for reconsideration afresh in accordance with law. The said order reads as under:-

"In this petition, the petitioner seeks the following reliefs:

"a) To set aside the order dated 16.01.2025 passed by the Hon'ble II Additional Senior Civil Judge and JMFC Chikkaballapura, in Crime No.94/2024 i.e., Annexure-C directing the Petitioners to defreeze the Savings/current account bearing A/c. No.923020050892332, A/c.No.922010047434860, A/c No.919010030337161 and A/c. No.923020049674273 maintained in the Petitioner's Bank.

b) To pass such other orders as may be deemed expedient in the circumstance of the case and in the interest of justice."

2. Heard learned counsel for the petitioner and learned AGA for the respondents and perused the material on record.

3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that the issue in controversy involved in the present petition is directly and squarely covered by the judgment of a Co-ordinate Bench of this Court in the case of Axis Bank Ltd. Vs. The State of Karnataka and Anr. , Crl. Pet. No. 1787/2023 dated 14.12.2023, and the present petition may be disposed of in the above terms.

4. As rightly contended by the learned counsel for the petitioner, the issue in controversy in the present petition is covered by the judgment of this Court in the case of Axis Bank Ltd., Vs. The State of Karnataka and Anr., wherein it is held as under:

"The Petitioner which is a Financial Institution is before this Court challenging the order passed by 1st Additional Chief Metropolitan Magistrate on an application filed under Sections 451 and 457 of Cr.P.C. by the complainant/respondent No.2 directing the petitioner-Bank to defreeze the amount belonging to the accused and transfer the said amount to the bank account of the complainants/respondent No.2.

2. The petitioner's concern is that the order passed by the Jurisdictional Magistrate cannot be executed because it surpasses the specified release amount, and numerous courts across the Country have issued directives to the investigating agencies to unfreeze the bank accounts of the accused therein.

3. Learned Special Public Prosecutor on instructio