The freezing of a bank account during a criminal investigation requires a reasonable nexus between the alleged crime and the funds in the account.

JUDGMENT :

Petitioner is the 2nd accused in Crime No.547, 548 and 549 of 2020 of Edathua police station, which were registered under Sections 406, 420, 120B, read with 34 of the IPC. During the course of investigation, the personal account of the petitioner was frozen by means of intimation given by the respondent. Ext.P2 communication was sent by the Manager of the Indian Overseas Bank, intimating him that the account stands frozen. Aggrieved by the same, the petitioner has moved this Court under Article 226 of the Constitution seeking the following reliefs :

1. Issue a writ of certiorari or any other appropriate writ, order or direction quashing Ext.P2.

2. Issue a writ of mandamus or any other appropriate writ, order or direction directing the 1st respondent to permit the petitioner to operate his bank account with the 1st respondent bank freely and without any interruption and to honour the request for withdrawal, transfer or otherwise dealing with the deposits standing to the credit of his account.

2. The SHO, Edathua police station has filed a statement also. Later the petitioner produced Annexures P3 and P4 documents showing details of the bank transaction.

3. The specific case of the petitioner is that he is a retired employee of the Indian Overseas Bank and all the retirement benefits are deposited in the account maintained by him. It is his personal account. He happened to be the treasurer of the Veda Vyasa Vidya Peedam, an unaided school run in the locality. In order to run the school, the management had formulated and conducted a chitty. Meanwhile, the Secretary of the School passed away, so that the functioning of the chitty went in disarray. Numerous demands were raised by the subscribers of the chitty for returning the money, but they could not honor such demands at a stretch and thus 33 complaints were preferred before police, on the basis of which three crimes, Crime Nos.547, 548 and 549 of 2020 were registered as stated earlier and total amount due to subscribers of the chitty comes to nearly Rs.29,00,000/-. Petitioner is arrayed as accused in all the crimes. The account of the petitioner was frozen during the course of investigation.

4. I heard the learned counsel for the petitioner and the learned Senior Public Prosecutor.

5. According to the learned counsel for the petitioner, It is purely his personal account. Rs.15,00,000/- was obtained towards gratuity and Rs.8.2 lakhs were received by arrears of salary and there is nothing to connect the said account with the offences alleged against the petitioner.

6. It is also pointed out that the management is trying their level best to repay the amounts by disposing of a landed property of the school. The learned counsel also placed reliance on the decision reported in State Of Maharashtra v. Tapas D. Neogy [1999 (7) SCC 685]. The learned counsel has taken me through the Ext.P3 details of account maintained by him. From the statement, it is vividly clear that the amounts credited in the account are the monthly pensionary benefits accrued to him besides amounts credited towards gratuity, arrears of salary, P.F settlement amount etc,. As held by the Hon'ble Supreme Court, in order to freeze the account of a person, there must be reasonable nexus with the alleged commission of the crime and the amount in credit. Here from the statement produced by the petitioner it is obvious that the said account is his personal account. It has nothing to do with the transactions of the school or the chitty conducted by the management of the school. Therefore, there is no justification in freezing the account. Ext.P2 order shall stand quashed and the account of the petitioner shall stand de-frozen.

Writ petition is allowed as above.