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IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) KOHIMA BENCH
DEVASHIS BARUAH
Istabul Hussain S/o Samsul Hoque – Appellant
Versus
State Bank of India – Respondent
JUDGMENT :
DEVASHIS BARUAH, J.
1. Heard Mr. M. Ali, the learned counsel appearing on behalf of the Petitioners and H. Buragohain, the learned Standing counsel appearing on behalf of the State Bank of India. I have also heard Mr. K. Gogoi, the learned CGC appearing on behalf of the Union of India.
2. The Petitioners herein are the businessmen by profession and the proprietors of a partnership business under the name and style of “Manash Enterprise” situated at Majgaon Bazar, Barpeta having its PAN No.ACEFM5119L. For the said purpose, the Petitioners are maintaining a SBI Current Account bearing No. 44633983652 with the Respondent State Bank of India.
3. The grievance of the Petitioners in the instant writ petition is that the Bank authorities have kept the Bank Account of the Petitioners on hold/blocked. It is the case of the Petitioners that, upon enquiry with the Bank, they came to know that their account had been blocked by the Head Office of the State Bank of India due to a disputed transaction of Rs. 2,000/-. It is the further case of the Petitioners that the Bank Account has been blocked without issuing any notice or intimation either by the Bank Authorities or by any Investigatin
Fundamental rights protect against arbitrary freezing of bank accounts without notice; courts must balance the rights of account holders with the necessities of investigations.
The court established that freezing bank accounts without proper notice infringes fundamental rights and requires a balance between investigation interests and the rights of innocent account holders.
The freezing of bank accounts must balance the rights of account holders against investigatory needs, ensuring no arbitrary restrictions are imposed without due process.
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