Back
IN THE HIGH COURT AT CALCUTTA
SABYASACHI BHATTACHARYYA, SUPRATIM BHATTACHARYA
Ravindra Pratap Singh – Appellant
Versus
Reserve Bank of India – Respondent
| Table of Content |
|---|
| 1. background of the appeal regarding account freezing. (Para 1 , 2 , 3) |
| 2. contempt application and procedural directions. (Para 4 , 5 , 6 , 7) |
| 3. arguments against the legality of the injunction. (Para 9 , 10 , 12 , 13 , 15) |
| 4. authority of the bank to act on account freeze. (Para 18 , 19 , 21) |
| 5. discrepancies in the basis for bank's freezing action. (Para 30 , 31 , 32) |
| 6. legal standing of directors removed from company. (Para 39 , 40) |
| 7. judgment on procedural impropriety in rulings. (Para 42 , 45 , 46) |
| 8. ruling on the appeals and procedural orders. (Para 49 , 50) |
JUDGMENT :
Sabyasachi Bhattacharyya, J.
1. The present appeals arise out of a common order passed in connection with three different applications. The backdrop of the case is that WPA No. 6088 of 2025 was filed under Article 226 of the Constitution of India by the present appellant against an order whereby the bank accounts of the appellant no.2-Company, of which the appellant no.1 is the director, was frozen by the respondent no.2, that is the Axis Bank Limited.
2. Upon the said decision being taken by the Bank, the appellants moved the banking Ombudsman of the Reserve Bank of India (RBI), the first respondent
A bank cannot freeze a company's account without a valid order from an adjudicatory forum, even amid management disputes.
The provisions of the Criminal Law (Amendment) Ordinance, 1944, for the continuation of attachment during an appeal apply only to assets attached under the Ordinance.
The freezing of a business account requires identification of the tainted amount to ensure proportionality, and blanket freezes violate constitutional protections against arbitrary state action.
It is true that jurisdiction of High Court under Art. 226 is an extraordinary jurisdiction vested in High Court not for purpose of declaring the private rights of the parties but for purpose of ensur....
The Court directed that pending a NCLT decision, a petition should be considered without delay despite ongoing mediation.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
